Absa Capital’s NewGold ETF breaks through $1bn mark  


South Africa’s largest ETF reaches new milestone

Already the largest Exchange Traded Fund (ETF) in the country, Absa Capital’s NewGold ETF (NewGold), reached yet another milestone today by notching up assets under management in excess of $1bn (R8.4bn). This morning’s listing of an additional 4,400,000 NewGold debentures has taken the fund’s holding of gold bullion to 33 tons.

Vladimir Nedeljkovic, Head of ETFs and Index Products at Absa Capital, the investment banking division of Absa Bank Ltd, said that the current turbulent economic times had made gold a very popular investment, and that gold’s investment case remained strong.

Designed by Absa Capital, 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. NewGold invests directly in gold and tracks the gold price.

“Since inception, NewGold has performed extraordinarily well, increasing the gold holdings and the assets under management. Last year, and the beginning of this year, were particularly strong,” said Nedeljkovic.

“Investors are certainly favouring direct investment in gold as it is less volatile and can be better performing than investing in gold shares.”

NewGold, the only commodity ETF in the local market, was launched in November 2004 with assets under management of just under R250m.


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 R8.4 billion in assets under management.
  • NewSA, the first ETF that tracks the empowerments 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.

Issued by:
FD Beachhead
Grant Henry
+27 11 214 2406
+27 82 561 7172

For further information contact:
Dr Vladimir Nedeljkovic
Head of ETFs and Index Products
Absa Capital
+27 11 350 2632

Graeme Coetzee
Associate Principal
Marketing and Corporate Communications
Absa Capital
+27 11 895 6695
+27 79 695 9798
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