Absa Capital’s NewGold ETF breaks R10bn mark  

Country’s largest ETF sets new high water mark

South Africa’s largest Exchange Traded Fund (ETF), Absa Capital’s NewGold ETF (NewGold), today reached yet another milestone only weeks after a similar announcement.

NewGold, the only commodity ETF in the local market, announced that it had attracted in excess of R10bn in assets under management, following the listing of an additional 7,600,000 NewGold debentures.

NewGold invests directly in gold and tracks the gold price. Designed by Absa Capital, the investment banking division of Absa Bank Ltd and the leading originator of ETFs in South Africa, NewGold is an investment tool that allows institutional and retail investors to invest in a liquid, listed instrument that is fully backed by gold bullion.

Today’s announcement follows the early June milestone when NewGold cracked through the $1bn mark of assets under management (R8.4bn at the exchange rate of R8.40 to the US dollar at the time).

Vladimir Nedeljkovic, Head of ETFs and Index Products at Absa Capital, said that since it launched, in November 2004, NewGold’s assets had grown manifold and that he expected further flows into the popular investment product.

Accounting for the strong inflows of over R1bn into the fund over the past month and a half, Nedeljkovic said: “The poor economic outlook and general market instability are making investors the world over seek out the comfort of gold. Gold is often less volatile and can be better performing than investing in gold shares.”


Note to the editor:

About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.

About Absa Capital ETFs and Index Products
Absa Capital is a leading originator of exchange traded funds (ETFs) in the South African market. The firm listed and operates:
  • NewRand, the first ETF in South Africa based on a proprietary investible index (the NewRand Index, comprising rand hedge stocks with the highest correlation with the Rand/USD exchange rate)
  • NewGold, the first and only gold ETF in South Africa as well as the largest ETF in the SA market with R10 billion in assets under management.
  • NewSA, the first ETF that tracks the empowerment status of South Africa’s Blue Chip corporates
  • eRAFI™ the first ETF in South Africa to use an innovative enhanced fundamental indexing approach to portfolio construction
  • Shari’ah 40, the first Shari’ah compliant equity-linked ETF in South Africa.
Absa Capital ETFs are listed on the JSE Ltd and can be traded at any time throughout the course of the day. Typically, ETFs try to replicate a stock market index such as the FTSE/JSE Top 40 Index, a market sector such as resources or financials, or a commodity such as gold.

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