Barclays NewGold ETF

NewGold is an Exchange Traded Fund listed on the JSE which enables investors to invest in a Gold Bullion debenture, the value of which tracks the price of the price of gold. The NewGold ETF derives its name from NewGold Issuer (RF) Limited –an entity that was launched by Absa Capital and managed by NewGold Manager (Pty) Ltd. It was formed 12 years ago and is housed at Absa Tower West, South Africa.

The Barclays NewGold ETF will trade in the same manner as a normal equity security and wilel be subject to the similar tax treatment. Disposals of the Gold Bullion Debentures will not attract capital gains tax in Kenya, in line with the treatment accorded listed instruments. ETF’s are based on the real time value of the underlying asset they track. The NewGold ETF will be Kenya Shillings (lings (ent. Disposals of NewGold ETF price will be based on the KES equivalent of the prevailing international market price of gold (in USD).

Price movement of the ETF will be determined by the price movement of gold. There will accordingly be no intra-day price limit on the ETF and there will not be price limits between trading sessions. Each security references approximately 1/100 troy ounces of Gold Bullion.
The allocated gold held as security has to be of SA origin, meaning it falls under SA Reserve Bank regulations. Gold is transported to London and held in safe custody by the NewGold’s custodian, ICBC Standard Bank. The gold is insured, allocated and cannot be lent out. The physical gold is independently audited by NewGold’s auditors.