Barclays Launches Traded Funds On NSX

BARCLAYS Africa has announced the listing of its NewGold, NewPlat and NewPalladium exchange traded funds (ETF) on the Namibia Stock Exchange (NSX), providing investors in Namibia with a new type of investment opportunity, and the chance to invest directly in the precious metals in Namibian dollars.

The listing marks the first time that Barclays Africa has listed its three flagship ETFs simultaneously on one exchange.

“Exchange traded funds have not been available to Namibian investors until now on the NSX. With the listing of NewGold, NewPlat and NewPalladium on the NSX, Barclays Africa is creating a new asset class for Namibian investors, while simultaneously increasing the liquidity of the NSX and deepening financial markets in Namibia,” said Vladimir Nedeljkovic, Head of Exchange Traded Products at the Corporate and Investment Banking division of Barclays Africa.

NewGold, NewPlat and NewPalladium have been granted local asset status allowing investors to access a local investment while enjoying the benefits of ETFs. The first day that Namibian investors will be able to trade in these new assets will be this Friday.

NewGold was first listed on the Johannesburg Stock Exchange in 2004 and since then on multiple stock exchanges across Africa including Botswana, Nigeria, Ghana and Mauritius. It currently has US$1,5 billion in assets under management, backed by 40 tonnes of gold bullion.

In April 2013, Barclays Africa created the NewPlat ETF. Within the space of a year, it became the largest platinum ETF in the world, and the largest ETF in Africa.

Currently it holds 36 tonnes of physical platinum bullion underlying the securities in issue, with US1,6 billion in assets under management. NewPlat is listed in Mauritius and was also recently listed in Botswana.

NewPalladium was created in March this year to track the price of palladium bullion. NewPalladium currently has almost US$370 million in assets, backed by close to 14 tonnes of palladium. Namibia will be the third listing of NewPalladium.

“ETFs provide investors with a unique opportunity to gain direct exposure to the shifting spot price of a resource like gold, platinum or palladium. ETFs remain among the fastest growing investment funds in major markets across the world. They are attractive because of their low costs, tax efficiency and stock-like features,” said Nedeljkovic.

Source : The Namibian