| Thu 12 Jan 2012, 7:40 | | NFGOVI - NEWFUNDS GOVI ETF - Initial Offer for NewFunds GOVI ETF Participatory |
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JSE
NFS
NFGOVI - NEWFUNDS GOVI ETF - Initial Offer for NewFunds GOVI ETF Participatory
Interests ("NewFunds securities")
NEWFUNDS GOVI ETF
ABBREVIATED NAME: NEWFNGOVI
SHARE CODE: NFGOVI
ISIN: ZAE000161949
A portfolio in the NewFunds Collective Investment Scheme in Securities
("NewFunds") (established on 21 December 2011 in the Republic of South Africa in
terms of the Collective Investment Schemes Control Act, 45 of 2002)) (the
"portfolio"), managed by NewFunds (Proprietary) Limited
INITIAL OFFER FOR NEWFUNDS GOVI ETF PARTICIPATORY INTERESTS ("NEWFUNDS
SECURITIES") REFERENCING THE TOTAL RETURN VERSION OF THE SOUTH AFRICAN BOND
TOTAL RETURN INDEX ("GOVI INDEX"), TO BE LISTED, SUBJECT TO JSE LIMITED ("JSE")
APPROVAL, ON THE MAIN BOARD OF THE JSE IN THE "EXCHANGE TRADED FUNDS" SUB-SECTOR
OF THE EXCHANGE TRADED PRODUCTS SECTOR
This announcement is issued in compliance with section 19.60 of the JSE Listings
Requirements for information purposes only. The information set out below has
been extracted from the NewFunds Offering Circular (dated 3 September 2007),
together with the Applicable Portfolio Supplement, to be issued on 12 January
2012 (the "APS")(collectively, the "circulars"), which are available as set out
below.
1. INTRODUCTION
NewFunds is a collective investment scheme in securities. The securities in
the NewFunds GOVI ETF will track the price and yield performance of the
GOVI Index, a total return index tracking the performance of the top ten
bonds included in the All Bond Index, ranked by market capitalisation and
liquidity and issued by the South African Government. This will be achieved
by:
- the issue in ZAR of NewFunds securities in dematerialised form on the terms
and subject to the conditions set out in the circulars, the value of each
of which will be approximately equal to one-tenth of the GOVI Index level
during the ramp-up period; and
- utilising the cash proceeds from the Initial Offer to acquire the Index
Constituents (as such term is defined in the APS), which once acquired will
be held by the trustee, The Standard Bank of South Africa Limited, provided
that if cash subscriptions are insufficient to enable the purchase of one
or more entire baskets of Index Constituents, the balance of the money paid
on application will be returned, subject to the terms set out in the APS;
- permitting in specie subscriptions by the delivery of a full basket of
Index Constituents per Block (comprising 1 million NewFunds securities);
- allowing the holders of NewFunds securities, post listing on the JSE, to
either trade them through the JSE on the secondary market or redeem them in
entire blocks;
- effecting notional monthly distributions of all income derived from the
Index Constituents to holders of NewFunds securities and thereafter
reinvesting all such income on securities holders` behalf into the
portfolio by the purchase of additional Index Constituents, in line with
the GOVI Index methodology.
2. SALIENT DATES AND TIMES AND FURTHER ANNOUNCEMENT
The Initial Offer will be open from 09:00 until 12:00 on Thursday, 12
January 2012.
Letters of Allotment (ISIN ZAU000012163) will be issued to successful
applicants on Friday, 13 January 2012 and will convert to NewFunds
securities, which will, subject to JSE approval, be listed on the JSE from
commencement of trading on Thursday, 26 January 2012.
A further announcement containing the results of the Initial Offer,
including the offer price per NewFunds security, will be published on SENS
on Wednesday, 18 January 2012.
3. AVAILABILITY OF DOCUMENTATION
Copies of the circular, in English, may be obtained during normal business
hours from Absa Capital, Investments, 15 Alice Lane, Sandton (+27 11 895
5517) or on the website (www.newfunds.co.za).
Johannesburg
12 January 2012
Originator, issuer agent, corporate advisor and sponsor
Absa Capital
(the investment banking division of Absa Bank Limited, affiliated with Barclays
Capital)
Legal Adviser
Webber Wentzel
Date: 12/01/2012 07:40:01 Produced by the JSE SENS Department.
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