Exchange traded products

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.

What types of ETPs does Standard Bank offer?

Standard Bank offers two types of ETPs:

  • 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

18 September 2017

Asset information AfricaGold AfricaPlatinum AfricaPalladium AfricaRhodium  
Net asset value (NAV) 171.18 127.47 121.09 150.77  
Number of debentures 700000 14900000 49800000 3965555  
Ounce per fund held 6923.499131 147251.4584 492203.9717 39057.38244  
Metal allocation per unit 0.98896975 0.988234118 0.986131515 0.984708994  

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 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 a recognise custodian stored in vaults in London. The palladium, platinum and gold ETFs have a low total expense ratio with management fees of 30bp per annum for gold and platinum and 35bp for palladium. The debentures can be created or redeemed in blocks of 100,000 debentures 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:

 

Commodity-linker ETNs

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

  • 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-linker ETNs?

Each precious metal Commodity-linker gives the investor exposure to a portion of an ounce of the precious metal concerned and as such provides access to commodities as an asset class. This amount varies daily in line with changing underlying commodity values.

Commodities as an asset class

Research has shown that commodities have proved to be a successful investment tool to provide increased returns and significant diversification benefits when included in an investor's portfolio. In addition, the inclusion of commodities also provides protection against inflation that is superior to that of other conventional asset classes.

Download our commodities research paper for more information.

Commodity-linker performance

Click here to access our latest Commodity-linker ETNs fact sheets or to see how many ETNs result in an exposure equivalent to a single ounce of the precious metal.

Trade Commodity-linker ETNs now

For product information contact Standard Bank on ETNS@standardbank.co.za or 0800 111 780.

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 ETN provides investors access to equity exposure in Africa excluding South Africa. The Africa Equity Index 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 Bank plc. The index reflects a diversified basket of shares across 28 African counties as such providing access to Africa as an asset. 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.

African equities as an asset class

It is expected that Africa growth will outpace the growth of other developed economies. According to the IMF, Africa's GDP grew at an average rate in excess of 5% between 2000 and 2009, compared to the advanced world average of 1.7% during the same period. Looking ahead, Africa's trajectory looks remarkably robust.

Download an Africa Economic Research presentation.

Trade AEI ETNs now

For product information contact Standard Bank on ETNS@standardbank.co.za or 0800 111 780.

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 Aluminum, 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