Absa Capital’s NewGold ETF exceeds 50 tonnes of bullion  

Absa Capital’s NewGold ETF (NewGold), the largest exchange traded fund (ETF) in South Africa, reached its latest milestone by exceeding 50 tonnes of gold bullion in assets.

This follows today’s listing of an additional 3,200,000 NewGold debentures taking NewGold’s holdings to 52.584 tonnes (or 1,690,614.584 ounces) of gold bullion.

At current market rates, NewGold’s Net Asset Value is approximately R12,9bn or $1,7bn. NewGold assets under management first broke the $1bn mark only three months ago.

Vladimir Nedeljkovic, Head of ETF’s and Index Products at Absa Capital, said that the strong gold price and ongoing investor caution continued to drive interest in NewGold.

“Investors are favouring direct investment in gold as it is less volatile and better performing than investment in gold shares,” said Nedeljkovic.

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

NewGold 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 investment bank 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 R12,9 billion in assets under management.
  • NewSA - the first ETF that tracks the empowerments status of SA’s Blue chip corporates,
  • eRAFITM ETF which selects 40 shares of the JSE top 100 based on fundamental valuation criteria
  • Shari’ah Top 40 ETF - the first Shari’ah compliant 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 ETF’s and Index products
Absa Capital
+27 11 895 5367

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