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NFGOVI - NEWFUNDS GOVI ETF - Initial Offer for NewFunds GOVI ETF Participatory

Release Date: 12/01/2012 07:40
Code(s): JSE
Wrap Text

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 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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