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Correction - Consolidation Of Participatory Interests In The 1nvest Sa Bond ETF
1NVEST SA BOND ETF
(“ETFSBOND”) (being a portfolio under the STANLIB ETF Collective Investment Scheme registered in
the Republic of South Africa in terms of Collective Investment Schemes Control Act, 45 of 2002
(“CISCA”)
Share Code: ETFBND
Abbreviated Name: ETFSBOND
ISIN: ZAE000265625
("ETFSBOND")
CONSOLIDATION OF PARTICIPATORY INTERESTS IN THE 1NVEST SA BOND ETF
1. Introduction
Holders of 1NVEST SA BOND ETF participatory interests (“Security”) are advised that the JSE
Limited (“JSE”) has approved an application by the manager of the STANLIB ETF Collective
Investment Scheme (“the Manager”) to proceed with a consolidation of Securities in ETFSBOND
(“the Consolidation”).
In terms of the Consolidation, the Manager will reduce the number of Securities that an investor
holds and accordingly increase the value of each Security. The portfolio value of each investor will
therefore remain unchanged.
2. Effective date
The effective date of the Consolidation is 28 December 2022.
3. Rationale for the Consolidation
Effective 01 April 2022, the Manager received regulatory approval to change the distribution policy
of the Security from a quarterly deemed distribution to an actual distribution of income.
The change to a distributing Security will see the Security hold income received into the portfolio in
cash and distribute a net of cash amount at the end of every quarter. To this effect, the Security will
now track the Price Index of its benchmark, instead of the Total Return Index.
This change from Total Return to Price Index has resulted in the price level of the Security being
significantly different to the price level of the Index. Although the difference in price levels, the
Security is performing in line with the index, however the price levels difference creates a perception
that the Security is not performing in line with its benchmark.
To this effect, the Manager will conduct a unit consolidation by reducing the number of units that an
investor holds and increasing the value of each unit accordingly of the Security which will align to
the S&P South Africa Sovereign Bond 1+ Year Index Price Return index level.
4. Implications for the Consolidation
The Security previously tracked, is the S&P South Africa Sovereign Bond 1+ Year Index Total
Return, which trades at a level of ~822. The Security trades at 1/10th the index, therefore implying
a price per unit of R82. The new benchmark being the S&P South Africa Sovereign Bond 1+ Year
Index Price Return, trades at a level of ~97. At a direct reflection of a 1:1 ratio with index, the implied
unit price of the Fund will be R97.
The total value of Security holders’ investment, will remain unchanged.
Item Detail
1. Will investors investment be impacted? 1. There will be no impact as units
will be reduced while increasing
the price of the security, however
the value of investments will
remain the same.
2. Will investors be able to compare to independent 2. Yes, the change management
pricing sources? will include informing
pricing/performance vendors to
ensure changes are implemented
effectively.
3. Will there be an impact on TCF Outcomes 3. There will be no impact on
1nvest adherence to TCF
Outcomes, however with the
alignment between the Fund and
the Index, there will be an
enhancement in terms of TCF
Outcome 5 –“Clients are provided
with products that perform as they
have been led to expect, and the
associated service is both of an
acceptable standard and as per
expectations set.”
The Consolidation will bring the NAV of each unit in line with the underlying index that it represents.
5. Details of the Consolidations
ETFSBOND currently has 1,600,000. It is anticipated that the Consolidation will be performed on a
0.81441:1 basis and as such, the number of Securities issued pursuant to the Consolidations will
be reduced to 1,303,056.
6. Salient dates pertaining to the Consolidations
2022
Last date to trade in existing shares on the JSE prior to the Consolidation Friday, 23 December
under the old ISIN ZAE000265625
Consolidated Security begins trading under the new reduced
Securities in issue under the new ISIN ZAE000316659 with effect from Wednesday, 28 December
commencement of business
Announcement released on SENS in respect of the cash payment Thursday, 29 December
applicable to fractional entitlements by 12:00 on
Record date in respect of the Consolidation Friday, 30 December
Accounts of dematerialised holders will have their Consolidated Security Tuesday, 03 January
updated and allocation of fraction payments on 2023
In addition to JSE’s approval, the Manager has also received approval from the Financial Services
Board for the Consolidation.
Johannesburg
19 December 2022
Sponsor
The Standard Bank of South Africa Limited
Date: 19-12-2022 04:38:00
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