Absa Capital has developed a new 'product selection' tool to assist financial advisers in addressing particular needs of retail investors, when selecting a structured product. The tree-like decision tool is available via the bank's online platform but does not provide advice - it is aimed at helping navigate the bank's range of structured products.
In addition, the South African bank has listed a new range of five exchange traded notes (ETNs) on the Johannesburg Stock Exchange (JSE) under Absa's NewWave ETN Programme. The new suite of ETNs comprises two precious metal ETNs tracking the spot price of platinum and silver, and three currency ETNs offering three reference currencies (euro, pound and US dollar).
"The ETNs listed [...] under the NewWave ETN Programme are designed to provide investors with an investment opportunity to access the returns of different assets or market indices, and represents the further development of Absa Capital's overall exchange traded product offering," said Vladimir Nedeljkovic, head of investments at Absa Capital.
NewWave Currency ETNs, said Nedeljkovic, are similar to having a currency deposit account with a financial institution, and buying currency exposure is now as easy as buying equities on the JSE.
According to Leanne Parsons, director of equity markets at the JSE, there has been a rapid increase in the number and variety of exchange traded products available to investors in the past years. "Exchange traded products are the perfect entry point to stock exchange investment for the small private investor and increasingly we are seeing them used as specialised tools by institutional investors in the creation of complex investment products," she said.
ETNs were introduced into the JSE's exchange traded product range in 2010 with five ETN listings. The number of ETNs grew to 15 by the end of 2011.