Namibians to invest with N$10

First National Bank (FNB) has announced the dual listing of the FirstRand Exchange Traded Note (ETN) programme on the Namibian Stock Exchange (NSX) which will allow Namibians to invest with as little as N$10.

FNB spokesperson Hileni Amadhila says Namibian investors will be able to invest in international companies like Amazon, Berkshire Hathaway and Microsoft.

“Previously, investing in these global companies required large sums and complex offshore accounts. But the FNB ETN programme allows ordinary Namibians to invest with as little as N$10,” says Amadhila.

The programme also offers protection against currency depreciation, she adds.

International diversification is important to any investment portfolio and the FNB ETNs provide an easy and cost-effective manner to start diversifying your investment portfolio.

“Because the programme is listed on the NSX, the ETNs may be purchased directly through NSX stockbrokers without the need of a complex offshore account opening process, which requires large investment amounts,” says Amadhila.

She adds that each ETN represents a fractional share in each of the companies listed, which is like owning the share directly offshore, just in a more affordable and accessible manner.

“This provides investors in Namibia with a unique opportunity to ensure that the offshore component of their investment portfolio is fully diversified,” says Amadhila.

Additionally, as the ETNs are listed instruments, these can only be traded through a registered Namibian stockbroker.

“The ETNs have an embedded management fee of 1% and is worked into the price at which the ETN trades on the exchange,” says Amadhila.

She adds that potential investors should seek competent financial advice before venturing into these instruments, assessing suitability based on their unique financial position.

– email: shania@namibian.com.na; Twitter:@ShaniaLazarus