Absa Capital’s NewGold ETF lists on Botswana Stock Exchange
Absa Capital’s NewGold Exchange Traded Fund (ETF) listed on the Botswana Stock Exchange (BSE) today, recording a historic milestone as the first ever ETF to list on the exchange.
Absa Capital, affiliated to Barclays Capital, one of South Africa’s leading investment banks, is part of the Absa Group. The firm currently invests, finances and raises capital across the African continent.
This morning, 1.6 million NewGold securities were listed on the BSE. As at 12 July, NewGold’s total assets under management were USD1.93bn.
The NewGold ETF, which allows both individual and institutional investors direct access to an efficient and cost effective method to invest in gold through a listed security, has received a warm response from local investors.
Vladimir Nedeljkovic, Head of ETF’s and Index Products at Absa Capital said: “We have experienced a significant amount of interest from investors in Botswana for the product because NewGold gives investors access to a completely new asset class. It will also greatly increase the liquidity on the BSE.”
The NewGold ETF, South Africa’s largest ETF and the third largest gold ETF in the world, tracks the Pula gold price and will be traded like any other share on the BSE.
“It is our opinion that NewGold should be a component of any investment portfolio as a portfolio diversifier, a store of value and a safe haven investment in uncertain economic times,” said Nedeljkovic.
’We, as Absa Capital, are excited to bring this product to the Botswana market,” Nedeljkovic concluded.
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, and has 56% of the market share based on assets under management. The investment bank has listed and operates 8 ETFs, including
- 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 USD1.93bn in assets under management.
- NewSA - the first ETF that tracks the empowerments status of South Africa’s Blue Chip corporates,
- eRAFITM family of ETFs - employing innovative fundamental valuation methodology to select its stock holdings
- Shari’ah Top 40 ETF - the first Shari’ah compliant equity 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.
FD Media & Investor Relations
+27 11 214 2406
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For further information contact:
Dr Vladimir Nedeljkovic,
Head of ETF’s and Index products
+27 11 895 5367
Marketing and Corporate Communications
+27 11 895 6695
+27 79 695 9798