The NewGold Exchange Traded Fund (ETF) offers the opportunity to invest in gold bullion, as it tracks the Rand price of gold. The debentures are fully backed by physical gold bullion with each debenture approximately equivalent to 1/100th of a fine troy ounce of gold bullion, which is held with a secure depository on behalf of investors.The annual management fee is 0.4% of the value of the debenture.
Classified as a domestic investment, NewGold is the first product in South Africa through which institutional and retail investors can securely invest in gold bullion, with the added benefit of low management fees.
NewGold debentures are listed on the Johannesburg Stock Exchange (JSE), with secondary listings in Botswana (BSE), Nigeria (NSE), Mauritius (SEM) and Ghana (GSE). They’re easily obtained through a member stockbroker in the relevant jurisdiction and additionally in South Africa through the Investment Plan administered by Absa Investment Management Services (AIMS).