Frequently Asked Questions - Benefits
| What are the benefits to investing in Property Index Tracker? |
| Accessibility Tracking an index through a direct investment in its constituents is very difficult, particularly for a small investor. To track the Index effectively, investors need to monitor the Index and any index developments on a daily basis. All constituents of the Index have to be traded individually and interest, dividends and other distributions have to be managed whenever paid. Property Index Tracker participatory interests confer on the holder of one Property Index Tracker security a proportionate share in the economic benefits of all of the securities issued by the constituent companies comprising the Index. Property Index Tracker securities are attractive to professional investors, providing a useful asset allocation and cash management tool. Liquidity and tight spreads Given that Property Index Tracker securities are listed instruments, they are capable of being bought and sold on the JSE through a JSE member. Property Index Tracker securities trade all day, just like any other listed security on the JSE. In addition, you can sell your participatory interests to the manager, which will buy it from you, or procure its purchase by the market maker. Further, the market makers will attempt to maintain a high degree of liquidity through continuously offering to buy and sell Property Index Tracker participatory interests at prices around the NAV of the participatory interest, thereby ensuring tight buy and sell spreads. You will under normal circumstances and conditions be able to buy Property Index Tracker securities from or sell them to the market makers. The most transparent way to invest The exact composition of the Index, the NAV of the Property Index Tracker participatory interests and the market price thereof will be published daily on the Property Index Tracker website. This allows an investor full price transparency and the ability at any time to compare the traded value of Property Index Tracker participatory interests with the actual value of the corresponding constituent securities at any time. Low cost Investing in Property Index Tracker participatory interests is an efficient way of gaining diversified equity market exposure at low costs while avoiding the costs and risks associated with active investment management. Scrip lending income received from the shares held in the trust, lent to FSB approved borrowers, helps to cover the bulk of costs. Flexibility After the listing on the JSE of the Property Index Tracker participatory interests, an investor will be able to purchase as few as one participatory interest on the secondary market. Approved Investment Property Index Tracker Managers (Pty) Ltd is registered with the Financial Services Board (FSB) as the manager of a collective investment scheme in terms of the CIS Control Act (2002). Falling under the CIS Act ensures that Property Index Tracker is an approved investment for pension and retirement fund managers, and that it operates on a level playing field with other investment products (such as unit trusts) in terms of tax treatment and regulatory requirements. |