Absa Capital’s NewGold ETF lists on Botswana Stock Exchange

Absa Capital, the investment banking division of Absa Bank Ltd, listed its NewGold Exchange Traded Fund (ETF) on the Botswana Stock Exchange (BSE) today, as part of the firm’s overall strategy to expand it suite of products and services in sub-Saharan Africa.

This morning, 1.6 million NewGold securities were listed on the BSE.

The move represents a secondary listing for NewGold, South Africa’s largest ETF and the third largest gold ETF in the world. As at 12 July, NewGold’s assets under management were ZAR14.7bn.

Vladimir Nedeljkovic, Head of ETF’s and Index Products at Absa Capital said: “Absa Capital is excited to list the first ETF on the Botswana Stock Exchange, allowing both individual and institutional investors direct access to an efficient and cost effective way to invest in gold through a listed security.”

“Historically, gold has demonstrated its role as an effective portfolio diversifier, a store of value and a safe haven investment in uncertain economic times, as well as an excellent currency hedge,” Nedeljkovic added.

The move is expected to help develop the investor market in Botswana by widening the choice of assets classes available to local investors, as well as to increase significantly the liquidity on the Botswana Stock Exchange.