Barclays Africa today announced the listing of the world’s largest platinum exchange traded fund (ETF), NewPlat, on the Botswana Stock Exchange (BSE), providing investors in Botswana with direct exposure to platinum in Botswana Pula.
“Along with NewGold, the listing of NewPlat on the BSE will help expand the Botswana investment market by widening the choice of asset classes available to local investors, increase the liquidity of the BSE and deepen financial markets in Botswana,” said Vladimir Nedeljkovic, head of Exchange Traded Products at the Corporate and Investment Banking (CIB) division of Barclays Africa.
First listed on the Johannesburg Stock Exchange (JSE) in April 2013, and then on the Stock Exchange of Mauritius in January 2014, NewPlat enables investors in Botswana to invest directly in platinum bullion as it tracks the platinum price.
The Non-Bank Financial Institutions Regulatory Authority has granted NewPlat local asset status allowing investors to access to a local investment while enjoying the benefits of NewPlat.
Barclays Africa’s CIB division will monitor the demand for NewPlat and make more securities available to the market as part of the normal BSE trading cycle.
“A few months after NewPlat’s initial listing on the JSE in 2013 it quickly became the world’s largest platinum ETF, quickly overtaking more established funds based in the United States. The good economic fundaments for the metal physically backing NewPlat ensures strong demand,” notes Nedeljkovic.
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.
Barclays Africa first introduced ETFs to the BSE in July 2010 through the listing of NewGold (now the largest ETF in Africa). This was a pioneering move and represented the first ever secondary listing of a JSE-listed ETF.
Each debenture is equivalent to approximately 1/100th of a fine troy ounce of platinum bullion held in a secure depository on behalf of investors. NewPlat has approximately R18.2 billion assets under management. The first day of trading of NewPlats on the BSE will be Friday, 29 August 2014.