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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.
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