Ace Gold ETF in market

Ace Development Bank Ltd. has launched Gold Exchange Traded Fund (GETF). Internationally, GETFs are the most sought after instruments by the gold investors. GETFs are safe, secured and relatively cheaper in comparison to physical gold investment with the same value of holding physical gold and Ace has made the same internationally popular investment vehicle accessible to the general Nepalese. Ace GETF is the trouble-free and secured gold investment mechanism. It will provide ample liquidity as well as fair price discovery based on the international market price to the domestic gold investors. The company will be providing authentic GETF certificate to the investors. The purity and storage management is done by the company itself. It is believed that the endeavor initiated by ACE will rationalized the domestic bullion market to some extent. Since inception in 1995, ACE has been first in introducing many innovative financial products and services to the Nepali financial market. In the future, ACE is planning to introduce some internationally acclaimed financial instruments best suited for the domestic financial market in association with renowned global brand in the industry.

Pramod Pandey, CFA from Ace Development Bank says it plans to introduce a gold ETF for Nepal's financial market on Sunday. As opposed to trading on a stand-alone exchange, the Nepalese ETF will be offered through the bank's own trading floor.

The fund will buy gold directly, according to details released announcing its introduction. On the first day of trading, the bank plans to sell 5 kilograms of gold linked to the ETFs. According to its sponsors, the ETF represents the cheapest way for investors to gain exposure to physical gold bullion other than buying it directly themselves.

Also, the ETF will begin trading on the bank's trading floor through it gold purchases. However, the secondary markets for investors will come through the Nepal Stock Exchange and the Commodities and Metal Exchange Nepal.

Ace Development Bank is positioning the gold ETF as an inflation hedge and is playing up gold's popularity with investors worldwide in the launch. The SPDR Gold Shares (NYSE: GLD) is by far the most popular gold ETF, with more than $18 billion in assets.

The ETF certificates for the bank's new ETF will be listed on the bank's trading floor and secondary market. Trading will start Sunday. Trading is expected to be available every day except Saturday, during banking hours.

Southeast Asia has seen a rapid rise in the total number of ETFs. However, while ETF listings increase in markets including Singapore, total assets have dropped in Asia, from 2007 levels. In Nepal, much of the country's population may be far from ready to invest in an ETF.

Approximately 30% of the population live below the poverty line, and 24% live on less than $1 dollar per day, according to United Nations data.

Finance represents 2.75% of the Himalayan nation's economy, compared with Agriculture, which is over 32%. Maybe an agricultural ETF with a concentration in sheep wool will be next.

According to the Barclays Global Investors' ETF research implementation strategy group, the Asian market leaders, in terms of ETF listings and assets at Q3 end were:

Market	Total Listings (9/30)	Assets ($BLN) (9/30)
Japan	61	27.5
South Korea	35	3.14
Singapore	18 (24, as of 11/4)	1.10
Hong Kong	23	13.2
Australia	18	1.11
Taiwan	11	1.83
India	11	1.62
New Zealand	6	0.35
China	5	2.67
Malaysia	3	0.30
Thailand	2	0.10
Indonesia	1	0.00

Source: Jamb News Service