Standard Bank South Africa’s palladium-backed exchange traded fund (ETF) - named AfricaPalladium ETF has made it possible for retail investors to add another layer to their investment portfolios.
AfricaPalladium ETF invests directly in palladium metal and tracks the rand price of the metal. This allows investors to gain direct exposure to physical palladium via cost effective liquid listed instruments – but without any of the usual risks, costs or requirements of ownership. The metal is held in secure vaults for the benefit of the investors.
Palladium is a precious metal and one of the platinum group metal (PGM) that is valued for its catalytic properties. South Africa is the largest producer of platinum, about 60% and the second-largest producer of palladium, about 40% of global production.
AfricaPalladium is the second largest palladium ETF globally and has attracted 660,000oz of palladium valued in excess of R5.5 billion from investors since its inception on 24 March 2014 on the Johannesburg Stock Exchange (JSE). AfricaPalladium.
AfricaPalladium ETF has no exchange control implications for investors because it is classified as a local asset.
Fast Facts on AfricaPalladium ETF:
• The instrument is structured as non-interest bearing debentures, 100% backed by the physical commodity.
• The physical commodity is stored as London Good Delivery Bars and kept in the vault of a custodian on an allocated basis.
• Individuals, companies, closed corporations and trusts are free to invest in the ETF’s.
• The ETF’s are designated as local assets and has no exchange control implications for investors.
• Africa ETF debentures are listed on the JSE Main Board in the ETF sub-sector and may be bought or sold like any other share during normal JSE trading hours (09:00 to 17:00 South Africa time) through a JSE member stockbroker including Online Stockbrokers.
• One ETF unit gives an investor about 1/100 oz of exposure to the underlying physical metal.
Standard Bank’s AfricaPalladium ETF was recently also listed on the Namibian Stock Exchange allowing Namibian investors to gain direct exposure to physical palladium.
In addition to the AfricaPalladium ETF, Standard Bank also has the AfricaGold and AfricaPlatinum ETF’s complementing the portfolio.
Visit
www.standardbank.co.za/africaetf.co.za for more information on Standard Bank ETF’s.
