Absa Capital’s NewGold continues growth path in Africa

Absa Capital, the corporate and investment banking division of Absa Bank Ltd and affiliated with Barclays, today listed the first ever Exchange Traded Fund (ETF) on the Ghana Stock Exchange (GSE), making it the fourth African bourse to list the NewGold ET

NewGold, Africa’s largest ETF, is the best performing ETF on the continent over five years, with a return of 22.55% per year, a two year return of 24.76% and a return over three years of 21.66%. As at 1 August 2012, NewGold’s assets under management were USD2.15bn.

“The introduction of Exchange Traded Funds to the GSE offers both individual and institutional investors a cost efficient and convenient way to invest in multiple shares or other assets, such as commodities, through a single security,” said Dr Vladimir Nedeljkovic, Head of Investments at Absa Capital.

“We have been encouraged by the success of the NewGold ETF in the African markets where it has been listed. Africa is an exciting proposition for this product and we will continue to explore opportunities across the continent,” said Nedeljkovic.

NewGold is the only gold-backed ETF on the continent and is a simple and cost effective way of investing directly in physical gold bullion through a GSE listed share.

The listing is in line with Absa Capital’s overall strategy to expand its suite of products and services in sub-Saharan Africa.

NewGold’s primary listing is on the Johannesburg Stock Exchange.