Exchange traded products

Standard Bank offers two types of exchange traded products consisting of Exchange Traded Funds (ETF’s) and Exchange Traded Notes (ETN’s).

What is an exchange traded product? 

An exchange traded product (ETP) is a type of security that has an underlying investment instrument or instruments; for example a commodity, currency, share, bond, index or a basket of instruments. The value of an ETP is based on these underlying instruments.

ETPs are listed and traded on an exchange.

  • Exchange traded notes (ETNs)
    • An ETN is a type of unsecured, unsubordinated debt security. Advantages include their tax-efficiency and the fact that they can be used to get access to new markets and strategies. Investors have to keep in mind, though, that they are exposed to (credit) risk of the issuer to make good on the performance of the underlying.
  • Exchange traded funds (ETFs)
    • An ETF owns the underlying assets, and the notes are backed by these assets. As such, investors are not exposed to the (credit) risk of the fund not making good on the underlying asset’s performance. ETFs are inexpensive and tax-efficient, and their stock-like features add to their attractiveness.

Net asset value

16 November 2018

 

Asset information AfricaGold AfricaPlatinum AfricaPalladium AfricaRhodium
Net asset value (NAV) 170.65 116.36 158.58 350.63
Number of debentures 600000 12200000 17500000 1075555
Ounce per fund held 5913.945536 120043.2859 172839.381 10497.99221
Metal allocation per unit 0.985696338 0.984309126 0.981562311 0.974935585

 

For more information, please click on the Exchange traded funds or Exchange traded notes tab above.

Fund information, please click the links below to download

 

Africa ETF

The palladium, platinum, rhodium and gold ETFs track the spot price of the underlying precious metal less fees. Each precious metal ETF is 100% backed by the physical commodity and on issuance each debenture will be based on 1/100th of a troy ounce. The physical metal is stored as London Good Delivery Bars held at recognised custodians stored in vaults in London. The palladium, platinum, rhodium and gold ETFs have a low total expense ratio with management fees of 25bp per annum for gold and 30bp for platinum and 35bp for palladium and 75bp for rhodium. The debentures can be created or redeemed in blocks of 100,000 debentures (25,000 debentures for rhodium) at a fixed cost of R5,000 per creation or redemption order. The ETFs are denominated in Rands and are classified as domestic assets. They thus do not utilise prudential limits for institutional investors or offshore allowance for individuals. Standard Bank is a committed market maker and therefore investors are assured the ease of entry and exit to this market should they not want to adopt a 'buy and hold' strategy.

Africa ETF Issuer (Limited) offers the following:

 

Click here for the Commodity ETN Pricing Supplements

Commodity-linked ETNs

Standard Bank offers ETNs that track the performance of a single precious metal or commodity, through the following notes:

  • Gold-linker (JSE code: SBAG1)
  • Silver-linker (JSE code: SBAS1)
  • Platinum-linker (JSE code: SBAPL1)
  • Palladium-linker (JSE code: SBAPD1)
  • Corn-linker (JSE Code: SBACRN)
  • Wheat-linker (JSE Code: SBAWHT)
  • WTI Oil-linker (JSE Code: SBAOIL)
  • Copper-linker (JSE Code: SBACOP)

Why trade Commodity-linked ETNs?

Each Commodity-linked note gives the investor exposure to a portion of the underlying commodity providing accesss to an alternative asset class. This amount varies daily in line with changing underlying commodity values.

Commodity-linked performance

Click here to access our latest Commodity-linkedETNs fact sheets or to see how many ETNs equal to a unit of the underlying commodity.

Trade Commodity-linked ETNs now

For product information contact Standard Bank on [email protected]  or +2711 415 4100.

Contact Online Share Trading or your JSE broker to start trading.

Africa Equity Index ETN

What is the Africa Equity Index ETN?

Standard Bank's Africa Equity Index Exchange Traded Note (AEI ETN) is, listed on the JSE, and tracks the performance of the Standard Bank Africa Total Return Index (SBAFRITR)

  • AEI ETN (JSE code: SBAEI)

To review JSE pricing supplement click here

Why trade the AEI ETN?

The AEI ETN provides investors access to equity exposure in Africa excluding South Africa. The AEI ETN tracks the Standard Bank Africa Total Return Index, which includes listed equities on African stock exchanges and equities listed in major stock exchanges outside Africa with their principal exposure to Africa.

What is the Standard Bank Africa Total Return Index?

The SBAFRITR is independently calculated and sponsored by Standard Advisory London Limited. The index reflects a diversified basket of shares across African countries providing access to Africa. Stocks selected include listed stocks within Africa, and stocks listed on major international exchanges that have direct exposure to Africa through either revenue, profits or asset streams.

Read more about the index.

To review index legal rules document click here.

Trade AEI ETNs now

For product information contact Standard Bank on [email protected]  or +2711 415 4100.

Contact Online Share Trading or your JSE broker to start trading.

Africa Equity Index performance

Click here to access our latest Africa Equity Index ETNs fact sheet.

Standard Bank Africa Commodity Index ETN

What is the Standard Bank Africa Commodity Index ETN?

Standard Bank's Africa Commodity Index Exchange Traded Note (SBACI), is listed on the JSE, and tracks the performance of the Standard Bank Africa Commodity Index (SBAFCI). The SBACI ETN presents a single tradable investment vehicle which provides investors with exposure to a diversified basket of commodities.

To find out more about the SBACI ETN click here.

  • SBACI ETN (JSE code: SBACI)

To review the JSE pricing supplement click here.

Africa Commodity Index performance

Click here to access our latest Africa Commodity Index ETNs fact sheet

What is the Standard Bank Africa Commodity Index (SBAFCI)?

The SBAFCI is a Rand based index which reflects a diversified and weighted basket of commodities including Aluminium, Copper, Crude Oil, Gold, Platinum, Corn and Wheat. The index represents a passive index which is re-balanced every two months in line with the commodity weighting for the index, while the commodity weighting is determined annually. The individual commodity weightings are calculated on the basis of their average African production value for the most recent five year period. Weightings determined may be adjusted in line with aggregated risk measures detailed in the index rules. These risk measures aim to ensure no single commodity or sub sector dominates the index. 

To find out more about the index rules please click here.

Commodities as an asset class

Commodities represent an asset class endowed with unique features, making them an attractive inclusion to diversify financial portfolios. The principal benefits of adding commodity exposure to an investment portfolio are:

  • Commodity markets trade globally, offering distinct advantages in liquidity and the free flow of commodity information.
  • Commodity returns generally exhibit negative correlation with returns from traditional asset classes such as equities and bonds.
  • Low or negative correlation across commodity sectors provides further diversification benefits.
  • Commodity returns are sometimes found to have a positive correlation with inflation, hence providing a natural inflationary hedge.

For a detailed outlook on the specific commodities included in the SBACI ETN, please click here.

  • Share
    Share
  • Email
Get in touch with us

Connect with the right client relationship and specialist teams to move you forward

Subscribe to our quarterly newsletter
giving you our latest insights