Nigeria Launched First Gold ETF
(LAGOS/JOHANNESBURG) Absa Capital, the corporate and investment banking division of Absa Bank Ltd, listed its NewGold Exchange Traded Fund (ETF) on the Nigeria Stock Exchange (NSE) on December 19 as part of the firm’s overall approach to expand it suite of products and services in sub-Saharan Africa. There are now three African countries (South Africa, Botswana and Nigeria) where NewGold, South Africa’s largest ETF and the fourth largest gold ETF in the world, is listed. As at 14 December 2011, NewGold’s assets under management were $2.2bn.
Dr Vladimir Nedeljkovic, Head of Investments at Absa Capital, said: “The inclusion of the NewGold ETF, today, on the NSE allows both individual and institutional investors direct access to an efficient and cost effective means to invest in gold through a listed security.” The Nigeria listing is expected to help develop the investor market in one of Africa’s fastest growing economies by widening the choice of asset classes available to local investors, as well as to increase significantly the liquidity on the NSE. “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. NewGold has been one of the best performing ETFs in South Africa over five years, with a one year annualised return of 41.49%, two year return of 26.02% and a return over three years of 18.92%.