Absa's NewGold ETF to list on Stock Exchange of Mauritius

NewGold is one of the simplest and most cost-efficient methods for investors to invest directly in physical gold bullion. Commenting at the launch function hosted by the Mauritius Stock Exchange on 18 July 2013, Vladimir Nedeljkovic, head of Investments at the Corporate and Investment Banking division of Absa, said that gold had been treasured for thousands of years as a store of value, and remains an important and secure asset.

Exploring African opportunities

"We have been encouraged by the success of NewGold in the other 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," added Nedeljkovic.

Launched in South Africa in 2004, NewGold was listed in Botswana in 2010, Nigeria the following year and in Ghana in 2012. Listings are also in the pipeline for Zambia and Uganda, in line with Absa's strategy to expand its suite of products and services across African markets.

The NewGold ETF securities are structured as debentures and backed by physical gold, with each debenture representing about 1/100th of an ounce gold. The physical bullion is held in a secure stockpile by NewGold's custodian, Barclays Bank, in London.

Accessible exposure to gold bullion

NewGold allows an investor to enjoy direct and convenient exposure to gold bullion without having to incur the cost of custody and insurance. Instead, they are able to take advantage of the lower custody and insurance costs charged as a result of the economies of scale associated with the fund.

"The listing of NewGold on the SEM helps to further expand the Mauritian investment market by widening the choice of asset classes available to local investors, and by also helping facilitate an increase in liquidity on the SEM," concluded Nedeljkovic.

Investors can invest in the NewGold ETF through an investment dealer or broker, who is a member of the SEM, in the same manner as if they were investing in shares.

For more information, go to etf.absacapital.com.