For Info purposes:
Standard Bank launched a listed palladium ETF on 24 March 2014.
In addition to the AfricaPalladium ETF (exchange traded fund), the AfricaGold and AfricaPlatinum ETFs listed on 7 April 2014.
Standard Bank Group was the first bank to list local ETNs (exchange trade notes) on the Johannesburg Stock Exchange in 2010 with the launch of ETNs that track the performance of gold, platinum, palladium and silver followed by the Africa Equity ETN.
The commodity ETFs offer investors a different investment class with several benefits including exposure to the physical commodity, some level of protection from negative real interest rates. Regulation 28 of the Pension Funds Act specifically allows for commodity exposure of up to 10 % through ETF's and ETN's. AfricaETF investors will have the option of physical delivery of the metals should they hold the necessary approvals, alternatively settlement in cash at the equivalent metal value on redemption of the ETF.
The AfricaPalladium, AfricaGold and AfricaPlatinum ETFs will be treated as local assets and have no exchange control implications for investors.
