| Tue 23 Feb 2010, 15:00 | | GEN - BBET40 - The BettaBeta Equally Weighted Top 40 portfolio |
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JSE
GEN
GEN - BBET40 - The BettaBeta Equally Weighted Top 40 portfolio
Initial announcement regarding The BettaBeta Equally Weighted Top 40
portfolio ("BettaBeta EWT40") (a portfolio under the BettaBeta Collective
Investment Scheme ("BettaBeta CIS") registered in terms of the Collective
Investment Schemes Control Act, 45 of 2002 ("CISCA"))
Share Code: BBET40
Abbreviated Name: BBEWT40
ISIN: ZAE000144507
1. Introduction
This announcement is in compliance with the JSE Limited ("JSE") Listings
Requirements. The information below has been extracted from the
BettaBeta CIS ETF programme memorandum ("the ETF programme memorandum")
and the BettaBeta EWT40 Portfolio Supplement ("the portfolio
supplement") further details of which are set out in paragraph 8 below,
and relates to:
i the initial offer for subscription of participatory interests in
the BettaBeta EWT40 portfolio, a portfolio within the BettaBeta CIS
("the initial offer"); and
ii the subsequent listing (approval for which has been granted by the
JSE) of the participatory interests on the JSE in the "Exchange
Traded Funds" sector, listed with the abbreviated name BBEWT40,
under the JSE share code BBET40.
2. Background
BettaBeta CIS is a collective investment scheme established by a deed
and registered under CISCA on 26 January 2010 and BettaBeta EWT40 is the
first portfolio to be listed under the BettaBeta CIS. The listing of the
BettaBeta EWT40 participatory interests is expected to be effective from
the commencement of business on 25 March 2010 in accordance with the
salient dates and times set out in paragraph 7 below.
The investment objective of the BettaBeta EWT40 portfolio is to
replicate, as far as reasonably possible, the price and yield
performance of the BettaBeta Equally Weighted Top 40 Index ("the index")
by holding a portfolio of securities equivalent to the basket of
securities comprising the index in equal proportions of 2.5% with the
exception of any constituent securities that jointly make an entity
(e.g. Investec Plc and Investec Limited) that shall be held jointly to
the weight of 2.5%.
The BettaBeta EWT40 portfolio will be adjusted to changes in the basket
of securities comprising the index as set out in the portfolio
supplement to ensure that the composition and weighting of the
securities comprising the BettaBeta EWT40 portfolio at all times
reflects, as closely as reasonably possible, the composition of the
securities comprising the index.
The constituent securities of the BettaBeta EWT40 Index are identical to
that of the FTSE JSE Africa Top 40 Index, that is they are the 40
largest companies listed on the JSE ranked by full market capitalisation
using the same ground rules used by FTSE/JSE to calculate and rank the
companies included in the FTSE/JSE Africa Top 40 Index.
3. Initial offer for subscription
The initial offer is an offer of participatory interests in the
BettaBeta EWT40 portfolio at the offer price. The offer price of each
participatory interest will be approximately the average price at which
baskets of the constituent securities are acquired during the ramp-up
period. The price per participatory interest will therefore equate to
approximately the average index level during the ramp-up period and will
be determined on the basis that the offer price for each participatory
interest will be inclusive of any taxes, costs or fees payable in
respect thereof, and such offer price is payable in full, in Rand,
without any deduction or set-off at the time an application for
participatory interests is submitted.
The offer price may be discharged in one of two ways: in cash or in
specie.
The minimum application in the case of cash subscriptions is ZAR1 000
and in the case of in specie subscriptions is the delivery of one or
more basket(s) subject to an obligation to subscribe for a minimum of 1
000 000 BettaBeta EWT40 participatory units .
There is no maximum application.
The ETF programme memorandum read together with the BettaBeta EWT40
portfolio supplement should be consulted for full details of the initial
offer.
4. Directors of Nedgroup Beta Solutions (Proprietary) Limited ("Nedgroup
Beta Solutions" or " the manager")
Nedgroup Beta Solutions has been appointed as the manager to BettaBeta
CIS. Details of Nedgroup Beta Solutions` directors are set out below.
Director Function Business address
Nerina Visser Executive Director 135 Rivonia Road, Sandown,
BSc, MBA, CFA 2196
Gavin Stanbury Executive Director 135 Rivonia Road, Sandown,
CA(SA), CFA 2196
Justine Brophy Non-executive Director 135 Rivonia Road, Sandown,
B.Comm, 2196
Post Graduate Diploma
in Financial Planning
Law,
MBA
Wynand Van Zyl Non-executive Director 135 Rivonia Road, Sandown,
BSc, PhD 2196
Claire Meagher Non-executive Director 135 Rivonia Road, Sandown,
BA LLB 2196
5. Calculation of the index
JSE has been appointed to calculate or procure the calculation of the
index. Further to this, the participatory interests are not in any way
sponsored, endorsed, sold or promoted by the JSE, FTSE International
Limited ("FTSE"), the London Stock Exchange Plc ("LSE") or the Financial
Times Limited ("FT") and none of these parties makes any warranty or
representation whatsoever, expressly or impliedly, either as to the
basis of calculation of, or as to the results to be obtained from the
use of the index and/or value at which the said index stands at any
particular time on any particular day or otherwise. The index is
compiled and calculated on behalf of and on the instructions of the
manager by FTSE. However, the parties shall not be liable (whether in
negligence or otherwise), to any person for any error in the index and
the parties shall not be under any obligations to advise any person of
any error therein.
The distribution of the portfolio supplement and the offer or sale of
participatory interests may be restricted by law in certain
jurisdictions. Persons into whose possession the portfolio supplement or
any participatory interests come must inform themselves about, and
observe any such restrictions.
6. Subscription conditions applicable to the initial offer
Applications for participatory interests in the BettaBeta EWT40
portfolio must be based on the total net monetary amount the applicant
wishes to invest in participatory interests and not on a specific number
of participatory interests.
An investor should contact its Central Securities Depository Participant
("CSDP") or JSE broker, should it wish to participate in the initial
offer.
Applications are irrevocable and cannot be withdrawn once submitted and
all subscriptions for BettaBeta participatory interests will be treated
as primary market acquisitions.
All subscribers for BettaBeta participatory interests must have a valid
account with a broking member of the JSE and must either be a controlled
or a non-controlled client. BoE Stockbrokers (Proprietary) Limited has
been appointed as the participating broker, to assist first time retail
clients in opening an account, details of which can be found in the ETF
programme memorandum and portfolio supplement.
Subscribers that do not have an account with a JSE member can contact
the participating broker or any other JSE broker to open an account. A
list of JSE brokers is available on the JSE website (www.jse.co.za).
Alternatively, subscribers can contact the subscription agent etfSA,
whose contact details are contained in the ETF programme memorandum and
portfolio supplement.
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 BettaBeta CIS participatory interests under the
initial offer, an investor is advised to contact his/her professional
adviser.
Investors are advised to refer to the complete subscription conditions
to the initial offer as set out in Annexure 4 of the ETF programme
memorandu
Salient dates and times
2010
Opening date of initial offer at 09:00 on Wednesday, 24
February
Closing date of initial offer at 12:00 on Tuesday, 16 March
Opening date of ramp-up period on Thursday, 18 March
Closing date of ramp-up period on Friday, 19 March
Announcement of initial offer price in respect of Tuesday, 23 March
cash subscriptions and the basis of allocations of
BettaBeta EWT40 participatory interests on
Listing date on Thursday, 25 March
Notes:
1. These dates and times are subject to amendment. Any such amendment
will be published on SENS and in the press.
2. Prospective investors should consult their JSE broker or CSDP to
establish the individual JSE broker or CSDP`s cut-off times to
receive applications as this time may occur before the closing
date.
8. ETF programme memorandum and portfolio supplement
Copies of the ETF programme memorandum and the portfolio supplement can
be obtained from the offices of Nedgroup Beta Solutions, 6th Floor, F
Block, Nedbank Sandton, 135 Rivonia Road, Sandown during normal office
hours, or on the BettaBeta website: www.BettaBeta.co.za, from 24
February 2010.
Johannesburg
23 February 2010
Investment bank and sponsor
Nedbank Capital
Legal Advisers
Webber Wentzel
Date: 23/02/2010 15:00:02 Produced by the JSE SENS Department.
