NO RE­MAIN­ING COAL ETF

Finweek English Edition - - INVESTMENT -

RMB has an­nounced the fi­nal de­tails of the delist­ing of two of its ex­change-traded notes (ETNs) is­sued over coal and oil. I un­der­stand why RMB is delist­ing them: tiny mar­ket caps and few trans­ac­tions in ei­ther, but I still think it is a pity as it re­duces op­tions for in­vestors on the JSE. The oil ETN (OILRMD) was the more pop­u­lar, with a mar­ket cap of just un­der R200m (around four times big­ger than the coal ETN). There is an al­ter­na­tive for the oil ETN with the Stan­dard Bank SBAOIL ETN. Un­for­tu­nately, there is no other coal ETN on the JSE, so in­vestors can switch their oil ex­po­sure but as for coal that’s no longer an op­tion. cost to the com­pany, but no de­tails have been of­fered as to po­ten­tial sav­ings. If they’re be­ing hon­est, the di­rec­tors took this op­tion be­cause they be­lieve that they will re­ceive bet­ter re­wards that way and not be­cause they want to save the com­pany money.

*The writer owns shares in Wool­worths.

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