Frequently Asked Questions - Pricing

1. What costs and expenses are deducted from the income of the Property Index Tracker Portfolio?
 
The deduction of expenditure from the income of the portfolio is restricted to the following items, subject to the terms of the Act and as stipulated and/or otherwise allowed by the Registrar from time to time:
  • charges payable on the buying and selling of assets for the fund such as broking commissions, value added tax or stamp duties;
  • auditors’ fees, bank charges, trustee and custodian fees, asset management and administration fees and other levies or taxes directly related to the fund on the basis permitted by the Registrar;
  • costs incurred in the creation and issue of participatory interests;
  • any permissible service charges payable to the manager; and
  • any license fees and costs incurred as a result of the fund being listed on an exchange (provided the approval of the Registrar has been obtained).
 
Any costs and expenses over and above those permitted to be deducted in terms of the Act will be borne and paid for by the manager.
 
2. What price will I pay for or receive for participatory interests after an initial offer?
 
If you buy or sell your participatory interests on the JSE after an initial offer, the price that you pay or receive for your participatory interests (net of brokerage commission, UST, if applicable, and any other trading costs) will be determined by the prevailing market price on the JSE at the time of the trade. At any point in time the market value of the Property Index Tracker securities may be expected to reflect approximately [1/10th of the Index level] plus an amount which represents a pro rata portion of any income accruals (less permissible expenses). Actual market values may be affected by supply and demand, liquidity and other market factors, but the ability of a holder of Property Index Tracker securities to take delivery of the underlying basket of shares, should operate to substantially avoid or minimise any differential which may otherwise arise between the price at which the Property Index Tracker securities trade and the value of the underlying basket of securities.

If you subscribe to the manager for new participatory interests after an initial offer closes or you redeem your participatory interests, the price (which is calculated on every trading day) will be the NAV of the participatory interest at the time of issue or redemption thereof (less any transaction costs, such as UST, upfront fees or exit fees payable to the manager).

If you buy or sell your participatory interests on the secondary market then the price will be the market price of the participatory interest, being the price agreed between a willing buyer and a willing seller. Any transaction on the secondary market will be subject to the customary STRATE fees, brokerage and transfer duties associated with trading on the JSE.

Due to market influences, the NAV per participatory interest may differ from the market price obtainable on the secondary market.
 
3. How is the NAV of the participatory interests calculated?
 
The Net Asset Value (“NAV”) of the portfolio is calculated by deducting all permissible deductions from the value of the assets held by the fund (which is determined with reference to the market value of the underlying securities on the Index exchange and takes into account both income for distribution received by the fund on behalf of investors and amounts which investors must pay the manager on the creation of new participatory interests to afford them equal participation in the income which has accrued in the portfolio).  The NAV per participatory interest is calculated by dividing the NAV of the portfolio by the number of participatory interests in issue at the time of the calculation. This information is determined at close of trade on each trading day.
 
4. How do I find out price and other information concerning Property Index Tracker participatory interests?
 
The information set out below will be published on each business day on the Property Index Tracker website: www.proptrax.co.za
 
  • the NAV of the Property Index Tracker participatory interests;
  • a history of the market price of Property Index Tracker participatory interests;
  • the income accruals (if the information is available);
  • the costs applicable to the portfolio and investors;
  • the constituents of the Index; and
  • any change in the composition of the Index.
 
The price at which Property Index Tracker participatory interests trade on the secondary market will be published in business newspapers daily.