| Thu 12 Jan 2012, 7:55 | | NFTRCI - NewFunds TRACI 3 month ETF - Initial Offer for NewFunds TRACI 3 |
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NFTRCI - NewFunds TRACI 3 month ETF - Initial Offer for NewFunds TRACI 3
MONTH ETF Participatory Interests ("NewFunds securities")
NEWFUNDS TRACI 3 MONTH EXCHANGE TRADED FUND PORTFOLIO
ABBREVIATED NAME: NEWFTRACI
SHARE CODE: NFTRCI
ISIN: ZAE000162251
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 "TRACI ETF"), managed by NewFunds (Proprietary) Limited
INITIAL OFFER FOR NEWFUNDS TRACI 3 MONTH ETF PARTICIPATORY INTERESTS
("NEWFUNDS SECURITIES") REFERENCING THE TOTAL RETURN VERSION OF THE BARCLAYS
CAPITAL/ABSA CAPITAL ZAR TRADABLE CASH INDEX (3 MONTH), 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 TRACI ETF will track the price and yield performance of the Barclays
Capital / Absa Capital ZAR Tradable TRACI 3-M Index (3 Month) (the "TRACI-3M
Index"), a total return index tracking the performance of 3-month South
African money market deposit rates, sourced from various banks in accordance
with the regulatory limits prescribed from time to time. 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 TRACI-3m 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 1 275 000
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 TRACI-3m 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 (ZAU000012171) 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. NOTICE
The TRACI 3-M Index is a trademark of Barclays Bank Plc ("Barclays") and is
used by the TRACI ETF under license. Barclays compiles, maintains and owns
rights in and to the TRACI 3-M Index. The NewFunds Securities are not
sponsored, endorsed, sold or promoted by Barclays and Barclays makes no
representation regarding the advisability of the TRACI ETF or use of the
TRACI 3-M Index or any data included therein.
Barclays Capital is the investment banking division of Barclays. With a
distinctive business model, Barclays Capital provides corporates, financial
institutions, governments and supranational organizations with solutions to
their financing and risk management needs.
4. 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 07:55:22 Produced by the JSE SENS Department.
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