| Wed 29 Apr 2009, 15:00 | | BIPINF - Bips Government Inflation Linked Bond Fund - Initial Offer And Listing |
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JSE
BIPS40
BIPINF - Bips Government Inflation Linked Bond Fund - Initial Offer And Listing
Of Bips Inflation-X Securities
Bips Government Inflation Linked Bond Fund
A portfolio in the Bips Collective Investment Scheme ("the portfolio")
registered in terms of the Collective Investment Schemes Control Act, 45 of 2002
Share Code: BIPINF
ISIN: ZAE000134185
INITIAL OFFER AND LISTING OF BIPS INFLATION-X SECURITIES
1. Introduction
Bridge Capital is authorised to announce that the JSE Limited ("JSE") has
approved the listing on the Main Board of the JSE of Bips Inflation-X securities
in the "Exchange Traded Funds" sector.
The aim of the portfolio is to provide returns linked to the performance of the
Government Inflation Linked Bond Price Index ("the Index") in terms of both
price performance as well as income from the component securities of the Index.
The Index represents all government-issued inflation-linked bonds which have a
listing on the Bond Exchange of South Africa.
Investors will be entitled to subscribe for Bips Inflation-X securities in terms
of the initial offer:
- in cash, in Rands, a price per security equivalent to approximately 1/10th
of the Index Level during the ramp-up period; or
- in specie, by the delivery of one or more whole baskets of constituent
shares entitling the investor to 200 000 Bips Inflation-X securities per
basket of constituent shares delivered.
2. The Product
The Bips Inflation-X portfolio is an exchange traded fund (ETF) comprising of
the four government-issued inflation-linked bonds.
Up until now, Inflation-Linked Bonds have been largely inaccessible to
individual investors. With the advent of Inflation-X, it will now be possible
for investors to purchase inflation protection on the JSE in the same way as
trading a normal share.
Inflation-Linked Bonds are credit risk free and are ideal for investors seeking
capital preservation over the medium term. They are particularly well suited for
retirement savings.
The product yields a return linked to inflation plus a real yield (currently
2.35%).
3. Salient dates and times
2009
Opening date of the initial offer at 09:00 4 May
on
Closing Date of the initial offer at 12:00 15 May
on
Ramp up period in respect of cash 18 May
subscriptions commences
LA`s issued 18 May
Listing Date (In specie subscriptions) 20 May
Ramp up period in respect of cash 27 May
subscriptions ends
Listing Date (Cash subscriptions) 1 June
4. General
The portfolio will be managed by Bips Investment Managers (Pty) Limited ("the
Manager"), a private company duly incorporated in accordance with the laws of
South Africa on 27 November 2006. The Manager has obtained permission to use the
name and track the Index. The documentation relating to the offer is available
during normal business hours at the registered office of the Manager, being 1
Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, from 4 May 2009.
Furthermore, the offer documentation will be available on the Manager`s website
(www.bipsetf.co.za) during the same period.
Bips Securities are not in any way sponsored, endorsed, sold or promoted by
Quant Financial Research (Pty) Limited ("QFR") and QFR makes no warranty or
representation whatsoever, expressly or implied, either as to the results to be
obtained from the use of the Index and/or the figure at which the Index stands
at any particular day or otherwise. The Index is compiled and calculated by QFR
in collaboration with RMB. However, neither RMB nor QFR shall be liable (whether
in negligence or otherwise) to any person for any error in the Index and neither
RMB nor QFR shall be under any obligation to advise any person of any error
therein.
5. Directors of the Manager
Details of the directors of the Manager are set out below:
Full name Business address Function
Leonard Jordaan 1 Merchant Place, Cnr Executive
Fredman Dr & Rivonia Director
Rd, Sandton, 2196
Louis Johannes 1 Merchant Place, Cnr Non-executive
Grobbelaar Fredman Dr & Rivonia Director
Rd, Sandton, 2196
Nicolene Maas 1 Merchant Place, Cnr Non-executive
Fredman Dr & Rivonia Director
Rd, Sandton, 2196
Pierre George 1 Merchant Place, Cnr Non-executive
Joubert Fredman Dr & Rivonia Director
Rd, Sandton, 2196
6. Subscription conditions applicable to the offer
- Once submitted, an application is irrevocable.
- All subscription for Bips Inflation-X securities will be treated as primary
market acquisitions and no application forms are required.
- All subscribers must have a valid account with a broking member of the JSE
and must either be a controlled or a non-controlled client. Subscribers
that do not have an account with a JSE member can contact any broker
registered on the JSE to open an account. A list is available on the JSE
website at www.jse.co.za.
Johannesburg
29 April 2009
Sponsor
Bridge Capital Advisors (Pty) Limited
Manager
Bips Investment Managers (Pty) Limited
Date: 29/04/2009 15:00:03 Produced by the JSE SENS Department.
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