Nedbank’s exotic product, Bettabeta EWT 40, is due for secondary listing on the Botswana Stock Exchange (BSE) in a move aimed at bolstering the Exchange Traded Funds in the country, the company announced this week.
The move will be the second one after the trading of the Gold ETF that was introduced by Barclays Capital on the BSE last year.
Bettabeta EWT 40 index are the forty largest companies listed on the Johannesburg Securities Exchange (JSE) ranked by full market capitalization using the same ground rules used by FTSE /JSE to calculate and rank companies included in the FTSE/JSE Africa top 40 index.
“The constituent security shall be held in equal proportions, being 2.5 percent each,” the company said in a statement.
“Bettabeta EWT 40 will distribute all of its net income to investors in proportion to the number of participatory interest held by them. Such distribution will be held quarterly on the last day of December, March, June and September of each year.
“Abandoned or undistributed distribution will be handled by Botswana CSD. Maintenance of the unclaimed dividend record will be kept by Botswana CSD. If the Botswana CSD is unable to distribute the funds due to closed or abandoned bank accounts, the manager will retain the distribution for a period of five years and thereafter donate the allocated distribution to charity at the manager’s discretion,” the company said.
Bettabeta already enjoys the grace of JSE on the ETF front and the bourse has approved it to be traded on secondary listingÔÇöhence it dashed to BotswanaÔÇöits nearest developed neighbour excluding Zimbabwe.
“In relation to the minimum number of participatory interests allowed for trading on the BSE, the same role applied on the JSE will be followed,” the company added.
The subscription for Bettabeta is expected to rank at 1/100 of the average price after taking out all the associated costs that are normally incurred in the ramp up period.
The listing is sponsored by African Alliance Securities Botswana and managed by Nedgroup Beta Solutions (Pty) Ltd. The listing is on Wednesday.