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Repatriation of CoreShares S&P 500 ETF and reduction to management fee
CoreShares Global Investments PCC
CoreShares S&P 500
Share code: CSP500
ISIN: MU0519N00036
(“CSP500”)
The CoreShares S&P 500 Exchange Traded Fund (“CoreShares S&P 500”) ETF portfolio is a portfolio
in the CoreShares Global Investments PCC (A Mauritius protected cell public company limited by
shares). The CoreShares S&P 500 is an approved Foreign Collective Investment Scheme in terms of
Section 65 of the Collective Investment Scheme Control Act 2002. The CoreShares S&P 500 is
managed by CoreShares ETF Manager Limited (“CEM” or “the Manager”) and is further represented in
South Africa by CoreShares Index Tracker Managers RF (Pty) Ltd.
1. REPATRIATION OF CORESHARES S&P 500 EXCHANGE TRADED FUND AND REDUCTION
TO MANAGEMENT FEE
1.1 Background
CoreShares started offering South African and foreign investors exposure to, JSE listed, ETFs
referencing foreign assets through the CoreShares S&P 500 and CoreShares S&P Global Property
ETFs, each as a cell in the CoreShares Global Investments Protected Cell Company established in
Mauritius ("Mauritian CoreShares ETFs"), on 4 November 2016. The Mauritian CoreShares ETFs are
listed on the Stock Exchange of Mauritius ("SEM") with secondary listings on the Johannesburg Stock
Exchange ("JSE") on which almost all trade occurs. The vast majority of the investors in the Mauritian
CoreShares ETFs are South African investors.
CoreShares established the ETFs in Mauritius because ETFs established in South Africa were not
permitted to reference foreign assets by the South African National Treasury until early 2017. In 2017,
the South African National Treasury for the first time permitted South African ETFs to begin referencing
foreign assets directly. Accordingly, it has become unnecessary to offer the ETFs to South Africans via
a secondary listing. A decision has therefore been made to “repatriate” the Mauritian CoreShares ETFs
and to obtain a primary listing on the JSE (“Repatriation”). The Repatriation also results in certain cost
efficiencies being realised and accordingly the management fee will be reduced.
1.2 Implementation and "roll over" of base cost
In order to effect the Repatriation, a new South African CoreShares S&P 500 portfolio (the CoreShares
S&P500 Index Feeder ETF) has been established on the South African CoreShares ETF platform,
being the CoreShares Index Tracker Collective Investment Scheme managed by CoreShares Index
Tracker Managers RF Proprietary Limited which will, in all material commercial respects, mirror the
existing Mauritian CoreShares S&P 500 ETF.
The implementation of the Repatriation is structured in such a way that investors will automatically be
subscribed for an equal number of securities with the same base costs for capital gains tax (“CGT”)
purposes in the South African S&P 500 ETF as they hold in the Mauritian CoreShares S&P 500 ETF
prior to the Repatriation. The implementation steps will take place almost simultaneously as part of one
overarching transaction. The investors will not be prejudiced as the intention is that the investors will
receive the same economic rights when holding the South African CoreShares S&P 500 ETF, as they
had before.
The primary listing of the Mauritian CoreShares S&P 500 ETF on the SEM and its existence as a cell
in the CoreShares Global Investments PCC will be discontinued, and the South African CoreShares
S&P 500 ETF portfolio will, after the Repatriation, not be listed on any other exchange, other than the
JSE. However, this does not preclude the Manager from other listings of this sort at a later date.
1.3 Action required by investors
No action is required by investors who wishes to participate in the Repatriation. Investors who wish not
to participate may redeem or sell their securities in the open market on the JSE, before the
implementation of the Repatriation.
2. FEE REDUCTION
The annual management fee will be reduced to 0.25% (excluding VAT) from the commencement of
trading in the South African CoreShares S&P 500 ETF.
3. APPROVAL AND NINTH SUPPLEMENT
Approval for the Repatriation of the CoreShares S&P 500 participatory interests was granted by the
JSE on 8 February 2019.
The Ninth Supplement to the CoreShares offering circular, regarding the Repatriation of the CoreShares
S&P 500 ETF is available at the registered office of CoreShares Index Tracker Managers (RF)
Proprietary Limited as well as on the website hosted at https://coreshares.co.za. For further information
on the Repatriation, kindly contact CoreShares at info@coreshares.co.za.
4. EXPECTED TIMELINE FOR THE IMPLEMENTATION OF THE REPATRIATION
Expected timeline for the implementation of the Repatriation 2019
Declaration and Finalisation Data SENS announcement of approval of Friday, 8 February
Repatriation
Last Day to Trade in the Mauritian CoreShares S&P 500 ETF Tuesday, 12 March
Suspension of trading of Mauritian CoreShares S&P 500 ETF on the JSE Wednesday, 13 March
Commencement of trading in the South African CoreShares S&P 500 ETF Wednesday, 13 March
on the JSE
Record date Friday, 15 March
Accounts of dematerialised securities holders updated at their CSDPs or Monday, 18 March
brokers
Termination of trading of Mauritian CoreShares S&P 500 ETF on the JSE Tuesday, 19 March
Note: Any changes to the expected dates above will be announced on SENS.
5. NOTICE
CoreShares S&P 500 participatory interests are not in any way sponsored, endorsed, sold or promoted
by the JSE and it does not make any warranty or representation whatsoever, expressly or implied, either
as to the basis of calculation of, or as to the results to be obtained from the use of the S&P 500 (“the
Index”) and/or the value at which the said Index stands at any particular time on any particular day or
otherwise. The Index is compiled and calculated by S&P Dow Jones Indices LLC. The JSE shall not be
liable (whether in negligence or otherwise) to any person for any error in the Index and the JSE shall
not be under any obligation to advise any person of any error therein.
The securities being issued pursuant to this supplement are not eligible for sale in the United States or
in any other jurisdiction in which trading in the securities would be illegal. The securities have not been,
and will not be, registered under the U.S. Securities Act of 1933, as amended, and the U.S. Commodity
Futures Trading Commission under the U.S. Commodity Exchange Act has not approved trading in the
securities. The securities may not be offered, sold or delivered within the United States or to U.S.
persons, nor may any U.S. person at any time trade or maintain a position in the securities.
8 February 2019
Corporate advisor and sponsor: Grindrod Bank Limited
Date: 08/02/2019 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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