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  You are here  Home | Spotlight – Standard Bank Africa Commodity ETFs
 
 
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Standard Bank Africa Commodity ETFs
 
Standard Bank have recently listed three new Exchange Traded Funds (ETFs), fully backed by holdings of physical precious metals. These products enable direct investment in gold, platinum and palladium bullion.

With platinum group metals and gold mines suffering from significant uncertainties, particularly in South Africa, with respect to labour relations and mining regulations, a direct investment in the physical commodity is an option that provides access to an asset class that has unique features in terms of diversification, risk management and hedge considerations.

The new ETFs are structured with an independent insolvency remote company holding the physical bullion and with participatory interest in this bullion holding freely tradable on the JSE in the form of non-interest bearing ETF debentures.

The Standard Bank bullion ETFs have the lowest cost structures for such products in the South African market, ranging from an annual fee of 0,30% per annum for the gold and platinum ETFs to 0,35% per year for the palladium ETF.

Salient details of the 3 new products are shown in the table below.

  
  AfricaPalladium ETF AfricaGold ETF  AfricaPlatinum ETF
ETF Issuer    Africa ETF Issuer (Limited) RF Africa ETF Issuer (Limited) RF Africa ETF Issuer (Limited) RF
JSE share code ETFPLD ETFGLD ETFPLT
Fees - accrued daily 35 bps 30 bps 30 bps
Initial denomination 1/100th of a troy ounce 1/100th of a troy ounce 1/100th of a troy ounce
Sponsor/Manager Standard Bank Standard Bank  Standard Bank
Market Maker Standard Bank Standard Bank Standard Bank
Custodian JP Morgan, London JP Morgan, London JP Morgan, London
Fund Administrator  Maitland  Maitland  Maitland
Transfer Agent Standard Bank Standard Bank Standard Bank
Bullion Inspector Inspectorate International Limited Inspectorate International Limited Inspectorate International Limited
Max Investment 1 000 000 ounces per annum 1 000 000 ounces per annum 1 000 000 ounces per annum
Source: Standard Bank
  
These three new ETFs will shortly be available on the etfSA Investor Plan, from R1000 for lump sum investments or from R300 per month for debit orders. There is no limit on the maximum investment.
  
  For the Standard Bank ETF fact sheet - click here
  For the Standard Bank Commodities June 2014 Quarterly Report - click here
  
Commodity Investment Seminar
etfSA.co.za, in conjunction with Standard Bank, will be dedicating its educational ETP Seminar on the 23rd June 2014, to the investment case for these 3 commodity ETFs. 

For more details and to book your place for attendance, click here