GEN - FTSE/JSE Africa Index Series - Dividend Withholding Tax in the Total

GEN - FTSE/JSE Africa Index Series - Dividend Withholding Tax in the Total      
Return Indices                                                                  
Dividend Withholding Tax in the Total Return Indices - Update FTSE/JSE Africa   
Index Series                                                                    
9 March 2012                                                                    
On 13 February 2012, FTSE/JSE published an Index Change Advice stating our      
intention to calculate all total return indices (TRI) on a net basis from 1     
April 2012, and requested feedback from the market in this regard.              
The FTSE/JSE Advisory Committee (AC) met on 7 March 2012, where the treatment   
of dividend withholding tax in the TRI was discussed at length.  The AC took    
careful note of the large number of concerns raised by various index users      
with the use of a net methodology.  In particular:                              
* a net methodology would reduce transparency and may be misleading for         
pension fund investors                                                          
* institutional investors including pension funds would need to benchmark       
their performance against an independently calculated gross (declared) TRI      
index                                                                           
Given the size of the institutional and pension fund market, the AC feels that  
it is more practical to provide a gross index in the immediate term.  Based on  
this, all FTSE/JSE TRI indices will be calculated using a gross (declared)      
rate from 1 April 2012 and NOT a net rate as previously announced.              
Furthermore, the AC acknowledges the need for TRI indices calculated on a net   
basis in the South African market.  FTSE/JSE will investigate the launch of     
net TRI indices and will inform the market once timelines have been finalised.  
Please address any queries or concerns to indices@jse.co.za                     
FREE TRIAL OFFER: FTSE offers free one month index trials to interested         
clients. For further information or general enquiries please contact us at      
info@ftse.com or indices@jse.co.za or call:                                     
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