Standard Bank Exchange Traded Notes
Gold-Linker Exchange Traded Note (JSE Code: SBAG1)
Standard Bank's Gold-Linker Exchange Traded Notes provides investors with exposure to the gold price in a cost effective manor. A total return index is created form the near dated USD gold future, USD interest rates and the USD/ZAR exchange rate. THe near-dated future is used as it is typically the most effective way of gaining exposure to gold. The gold-linker ETN therefore does not incur the costs of owning, storing and insuring physical gold.
Silver - Linker Exchange Traded Note (JSE Code: SBAS1)
Standard Bank's Silver-Linker Exchange Traded Note provides investors with exposure to the silver price in a cost effective manor. A total return index is created form the near dated USD silver future, USD interest rates and the USD/ZAR exchange rate. The near-dared future is used as it is typically the most cost effective way of gaining exposure to silver. The Silver-Linker ETN therefore does not incur the costs of owning, storing and insuring physical silver.
Platinum-Linker Exchange Traded Note (JSE Code: SBAPL1)
Standard Bank's Platinum-Linker Exchange Traded Note provides investors with exposure to the platinum price in a cost effective manor. A total return index is created form the near dated USD platinum future, USD interest rates and the USD/ZAR exchange rate. The near-dated future is used as it is typically the most cost effective way of gaining exposure to platinum. The platinum-Linker ETN therefore does not incur the costs of owning, storing and insuring physical platinum
Palladium-Linker Exchange Traded Note (JSE Code: SBAPD1)
Standard Bank's Palladium-Linker Exchange Traded Note provides investors with exposure to the palladium price in a cost effective manner. A total return index is created form the near dated USD palladium future, USD interest rates and the USD/ ZAR exchange rate. The near-dated future is used as it is typically the most cost effective way of gaining exposure to palladium. The Palladium-Liner ETN therefore does not incur the costs of owning, storing and insuring physical palladium
As a total return index, the Precious Metal ETN’s return is derived from the following five sources:
- Performance of the futures contract of the commodity: change in the near-dated future’s USD contract price
- USD deposit rate that accrues daily on the collateralized cash value of the investment: overnight USD Libor less 0.125%
- Change in USD / ZAR exchange rate
- Roll and re balancing yield: a result from rolling the current future into a distant future due to an approaching expiry
- Annual management fee of 0.5% is accrued daily
| Performance Information | October Performance |
Year to date |
1yr Return |
Inception to date |
| Corn | 6.25% |
8.49% |
NA |
8.49% |
| Wheat | 1.82% |
2.37% |
NA |
2.37% |
| Copper | 12.23% |
-5.76% |
NA |
-5.76% |
| WTI-Oil | 10.48% |
4.20% |
NA |
4.20% |
| Gold | 3.36% |
43.99% |
43.32% |
54.54% |
| Palladium | 4.41% |
-2.04% |
15.40% |
48.22% |
| Platimun | 4.14% |
8.95% |
6.17% |
11.91% |
| Silver | 10.69% |
32.32% |
59.38% |
102.80% |
Source: Bloomberg
Risks of trading and investing in ETNs include:
- Investing in ETNs may result in a loss for the investor
- ETNs are exposed to the credit risk of Standard Bank
- ETNs could encompass potentially unprofitable trading strategies
