| Wed 4 Jun 2008, 8:00 | | RAFISA - NewFunds eRAFI(TM) overall SA Index ETF portfolio - Initial offer |
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JSE
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RAFISA - NewFunds eRAFI(TM) overall SA Index ETF portfolio - Initial offer
for participatory interests in eRAFITM ("eRAFI(TM) Securities")
NewFunds eRAFI(TM) OVERALL SA INDEX ETF PORTFOLIO
Share code: RAFISA ISIN: ZAE000117149
The NewFunds eRAFI(TM) Overall SA Index ETF Portfolio ("eRAFI(TM)" or
"eRAFI(TM) ETF") in the Newfunds Collective Investment Scheme in Securities
("NewFunds") registered as such in terms of the Collective Investment
Schemes Control Act, 45 of 2002, managed by NewFunds (Proprietary) Limited
(the "Manager")
INITIAL OFFER FOR PARTICIPATORY INTERESTS IN eRAFI(TM) ("eRAFI(TM)
SECURITIES") REFERENCING THE PLEXUS ABSA CAPITAL eRAFI(TM) OVERALL SA INDEX,
A FUNDAMENTALLY WEIGHTED EQUITY INDEX COMPRISING SHARES IN THE 40 LARGEST
JSELISTED COMPANIES (AS MEASURED BY FUNDAMENTAL VALUE), TO BE LISTED ON THE
MAIN BOARD OF THE JSE LIMITED ("JSE") IN THE "EXCHANGE TRADED FUNDS" SECTOR
This announcement is issued in compliance with the Listings Requirements of
the JSE for information purposes only. The information set out below has
been extracted from a portfolio supplement to be issued on 4 June 2008, as
read with the NewFunds Offering Circular and PreListing statement issued on
3 September 2007 (together, the "offering circulars") which are available as
set out below.
1. INTRODUCTION
eRAFI(TM) is a new exchange traded fund forming part of the NewFunds
stable and cooriginated by Absa Capital, a division of Absa Bank Limited
("Absa") and Plexus Asset Management (Proprietary) Limited ("Plexus"),
an independent investment house. The eRAFI(TM) ETF is to be listed in
the Exchange Traded Fund Sector of the Main Board on the JSE on 23 June
2008.
eRAFI(TM) securities will track the price and yield performance of the
Plexus Absa Capital eRAFI(TM) Overall SA Index (the "eRAFI(TM) Index").
The eRAFI(TM) Index is a fundamentally weighted equity index in which
the constituent securities are weighted by a company`s economic value
rather than its market capitalisation. The economic value of each
company in a universe of the top 100 JSE listed companies by market
capitalisation (and subject to compliance with certain liquidity
criteria) is determined using the patented enhanced Research Affiliates
Fundamental IndexationTM methodology which uses public audited values
including sales, cash flow, book value and dividend flow to determine a
company`s value and then screens companies with reference to net
operating assets (for the purposes of determining quality of earnings)
and debt coverage ratio (as a financial distress screen) in order to
arrive at an index comprising the 40 economically largest companies
listed on the JSE.
The eRAFI(TM) Index is calculated by RisCura Solutions (Proprietary)
Limited whose calculations are then verified by FTSE International.
2. THE INITIAL OFFER
Investors will be entitled to subscribe for eRAFI(TM) securities in
terms of the initial offer:
- in cash, in Rands, the proceeds from the issue of every one million
eRAFI(TM) securities (after costs and fees) being utilised to acquire
one basket of the securities comprising the eRAFI(TM) Index
("constituent securities"); or
- in specie, by the delivery of one or more whole baskets of the
constituent securities ("baskets of constituent securities") (together
with a specified amount in cash equal to transaction costs, taxes and
fees and other amounts as specified by the Manager) entitling the
investor to one million eRAFI(TM) securities per basket of constituent
securities delivered.
eRAFI(TM) securities will be issued in dematerialised form only on the
terms and subject to the conditions more fully described in the offering
circulars, the value of each of which will approximately equal 1/1 000th
of the eRAFI(TM) Index level.
Following the listing, securities holders may either trade their
securities on the JSE, redeem them for cash or, in respect of every one
million eRAFI(TM) securities redeemed, sell them back to the Manager for
one basket of constituent securities.
3. SALIENT DATES AND TIMES AND FURTHER ANNOUNCEMENT
The initial offer will remain open from 09:00 on 4 June 2008 until 12:00
on 9 June 2008 (the "official closing date"). (Prospective investors
should contact their broker or CSDP to ascertain the closing date
applicable to them as the cutoff times applied by the CSDPs and brokers
will occur earlier than the official closing date). Investors applying
in specie should note that the last day to trade in order to ensure that
baskets of shares are received timeously, is Friday, 13 June 2008.
Letters of Allocation will be issued in respect of cash subscriptions in
the name of successful applicants on 11 June 2008 and will convert to
eRAFI(TM) securities and be listed on the JSE at commencement of trading
on 23 June 2008.
A further announcement containing the results of the initial offer
including the conversion ratio and issue price will be published on SENS
in due course.
4. NOTICE
eRAFI(TM) securities are not in any way sponsored, endorsed, sold or
promoted by Research Affiliates, which makes no warranty or
representation whatsoever, expressly or implied, either as to the basis
of calculation of, or as to the results to be obtained from the use of
the eRAFI(TM) Index and/or the value at which the eRAFI(TM) Index stands
at any particular time on any particular day or otherwise. Neither
Research Affiliates, RisCura, FTSE nor the Manager shall be liable
(whether in negligence or otherwise) to any person for any error in the
eRAFI(TM) Index and shall not be under any obligation to advise any
person of any error therein.
"eRAFI(TM)" is a trade mark of Research Affiliates and is used by
Plexus, Absa and the Manager under license.
The eRAFI(TM) securities are not eligible for sale in the United States
or in any other jurisdiction in which trading in them would be illegal.
The eRAFI(TM) securities have not been, and will not be, registered
under the U.S. Securities Act of 1933, as amended, and trading in
securities has not been approved by the U.S. Commodity Futures Trading
Commission under the U.S. Commodity Exchange Act. The eRAFI(TM)
securities may not be offered, sold or delivered within the United
States or to U.S. persons, nor may any U.S. person at any time trade or
maintain a position in them.
5. DIRECTORS, TRUSTEE AND REGISTERED OFFICE
The directors of the Manager are:
Director : Ethan Gilbert Dube (Nonexecutive)
Address : Vunani House
Atholl Ridge Office Park
151 Katherine Street
Sandown
Sandton, 2196
Director : Butana Mangaliso Khoza (Nonexecutive)
Address : Vunani House
Atholl Ridge Office Park
151 Katherine Street
Sandown
Sandton, 2196
Director : Alan Jonathan Miller (Nonexecutive)
Address : 180 Commissioner Street
Johannesburg, 2001
Director : Andries Benjamin le Grange (Nonexecutive)
Address : 180 Commissioner Street
Johannesburg, 2001
The trustee of NewFunds, The Standard Bank of South Africa Limited, is
located at 9th Floor, Standard Bank Centre, 5 Simmonds Street,
Johannesburg.
The registered office of the Manager is located at 3rd Floor, Absa
Towers East, 170 Main Street, Johannesburg, 2001.
6. COPIES OF THE OFFERING CIRCULARS
Copies of the offering circulars, in English, may be obtained during
normal business hours from the registered office as detailed above, from
4 June 2008 until 23 June 2008.
7. SUBSCRIPTION CONDITIONS APPLICABLE TO THE INITIAL OFFER
The initial offer is subject to the conditions detailed in the offering
circulars and as summarised below:
- You cannot withdraw an application once submitted. It will be
irrevocable.
- All subscribers for eRAFI(TM) securities must have a valid account
with a broking member of the JSE.
- Subscribers that do not have an account with a JSE member can open an
account with any broker on the JSE. A list of brokers is available on
the JSE website at www.jse.co.za.
- Subscribers can also contact Absa Stockbrokers (Proprietary) Limited
(telephone: (011) 6470830) or Vunani Securities (Proprietary) Limited
(contact: Tracy Cornelius (011) 2639528), which have been appointed as
the participating brokers to assist first time retail clients in
opening an account.
- If a prospective investor is in any way unclear as to the correct
procedure to be followed, or the terms and conditions applicable to
subscriptions for eRAFI(TM) securities under the initial offer, the
investor is advised to contact his professional advisors,
alternatively to contact NewFunds directly on (011) 3508395.
- A controlled client should liaise with his broker, which will
subscribe via its nominated CSDP.
- A non-controlled client should liaise with its nominated CSDP, which
will in turn liaise with the issuing agent, Absa Capital Investor
Services, a division of Absa Bank Limited.
- Investors should note that the cutoff times applicable to the initial
offer will vary depending on the particular broker or CSDP.
Johannesburg
4 June 2008
Corporate advisor, legal advisor and sponsor
Java Capital (Proprietary) Limited
Cooriginator
Absa Capital
a division of Absa Bank Limited
Cooriginator
Plexus Asset Management (Proprietary) Limited
Date: 04/06/2008 08:00:00 Produced by the JSE SENS Department.
