Frequently Asked Questions - Definitions
| 1. What is Property Index Tracker? |
| Property Index Tracker is an Exchange Traded Fund (ETF), established as a collective investment scheme in securities in terms of the Act, the portfolios of which will be listed on the JSE in the Traded Index Funds sector of the JSE’s Main Board. The investment objective of each of the Property Index Tracker portfolios is to replicate as far as possible the price and yield performance of a specified Index. |
| 2. What is an ETF? |
| An ETF, otherwise known as an Exchange Traded Fund or an index tracking fund, is a passively managed investment fund the aim of which is to track the performance of a particular index. The units or shares of beneficial interest in the funds are generally listed on an exchange. |
| 3. What is an Index? |
| An index is a notional portfolio of securities representing a particular market or a portion of a particular market. Each index has its own calculation methodology and is usually expressed with reference to and in terms of a change from a base value. Indices are used as benchmarks for securities markets. The Indices that will be specified in respect of the portfolios of Property Index Tracker will be Indices in respect of or related to the real estate sector of securities markets. |
| 4. What is a Property Index Tracker Participatory Interest? |
| Each of the Property Index Tracker portfolios is divided into units of beneficial interest known as participatory interests, much like shares in a company. A Property Index Tracker participatory interest is a security issued by the fund and listed on the JSE. Each Property Index Tracker participatory interest affords the owner thereof an equal proportionate interest in the portfolio in respect of which it is issued. |