General SENS Submitter Company - Informative Notice 20191210 Market Consultation Naspers Prosus Capping

Informative Notice – 20191210 Market Consultation Naspers Prosus Capping

                    Market Consultation: Naspers and Prosus Capping

                     Informative Notice (FTSE/JSE Africa Index Series)

                                                    10 December 2019
FTSE/JSE published a request for comments and submissions on 5 November 2019 regarding the capping
methodology applied to Naspers and Prosus in the FTSE/JSE Africa Index Series. It was proposed during
this consultation process that one of the Ground Rules of the indices should be amended to jointly cap
Naspers and Prosus at a level of 10% in the capped indices. Comments, submissions and responses were
requested to be submitted to the JSE on or before 22 November 2019. FTSE/JSE is appreciative of all the
responses and input received during this consultative process.

The responses to the consultation confirmed the general support of the local asset management industry
for the proposal, with some notable exceptions. However, there were many divergent views, with around
half of the respondents not supporting the proposal, including a representation of sell-side participants,
investors, issuers and local managers.

In these circumstances and after careful and detailed consideration of all the facts and information at its
disposal, the JSE has decided to not pursue the implementation of the proposed amendment to the
Ground Rules of the index to jointly cap Naspers and Prosus at a level of 10%.

The FTSE/JSE Index Advisory Committee acknowledges the concern around the combined weight of the
two instruments in the capped indices following the Prosus listing, and further highlights the scenario that
the combined weights increase significantly as a result of market movements or future corporate actions.
This is particularly relevant given the primary purpose for which the FTSE/JSE Capped SWIX All Share
Index was created.

FTSE/JSE initiated a benchmark design project in the fourth quarter of 2018 in order to test whether the
current SWIX and ALSI methodologies provide the most appropriate benchmark construction principles
for local investors. The Index Advisory Committee has requested that this project resume early in the
new year, and incorporate a broad range of stakeholder involvement.


For further information please contact FTSE Russell Client Services at info@ftserussell.com or call:

 Australia              +1800 653 680
 Hong Kong              +852 2164 3333
 Japan                  +81 3 4563 6346
 London                 +44 (0) 20 7866 1810
 New York               +1866 551 0617

 JSE Limited            +27 11 520 7000


Alternatively please visit our website at www.ftserussell.com

                                      Terms of Use | Copyright © 2019 FTSE Russell

Date: 10-12-2019 05:49:00
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.