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Absa Exchange Traded Funds

Shari’ah Top40 Equity Exchange Traded Fund

The FTSE/JSE Shari’ah Top 40 is designed to reflect the Shari’ah compliant companies identified from the top 40 companies listed on the main board of the JSE as measured by market capitalisation. A two step Yasaar Ltd (Yasaar) approved screening process is undertaken by the FTSE and the JSE and verified by Yasaar to ensure that all companies included in the index are Shari’ah complaint.

Yasaar Research Inc scholars represent all of the major Shari’ah schools of thought, creating a best practise approach that has credibility across all regions of the Islamic world.

The Shari’ah Top 40 is structured as a Financial Services Board (FSB)- approved Collective Investment Scheme Portfolio, issued under the NewFunds CIS umbrella. Listed on the JSE Limited, the Shari’ah ETF provides investors with a daily disclosed, low-cost, and easy-to access investment product that conforms to Shari’ah principles.

Shariah Top40 ETF-AbsaCapitalShariah Top40 ETF-BarclaysCapital

Features

Shari’ah Top 40 Performance (as at 31 March 2014)

Shari’ah Top 40 ETF Performance history - JSE code: NFSH40
Annualised Returns
Shari'ah Top40 ETF
FTSE/JSE Shari'ah Top 40 Index
Return since inception
15.66%
15.50%
1 year return
28.15%
27.27%
2 year return
20.23%
19.57%
3 year return
10.66%
10.36%
4 year return
11.62%
11.11%
Source: *Bloomberg, Absa - March 2014
(past performance is not necessarily a guide to future performance)

Accessibility
All participatory interests issued by the Shariah 40 ETF Portfolio is listed on the JSE, and as such may be freely traded on the JSE on trading days during market hours. Participatory interests are issued in dematerialised form, as such; all trades will be settled through the Strate system.
Security
Shari’ah 40 securities in issue are covered by physical holding of Shariah Top 40 Index constituent shares.
Cost-effectiveness
Fees will be aligned according to a sliding scale providing a low cost structure.
Liquidity
Shari’ah 40 Portfolio is an open ended fund. Liquidity is provided by Absa Capital as the market maker.
Transparency
The index calculation methodology, exact composition of the Shariah 40 Index and its NAV are published daily on the NewFunds website. The calculation agent is independent. For the full disclosure of the FTSE/JSE Shariah Top 40 Index methodology, refer to the Shariah Top 40 Index ETF Portfolio Supplement.
Taxation
The gain made by investors from the acquisition and disposal of Shariah 40 participatory interest will, depending on their circumstances of each participatory interest holder, be subject to income tax, capital gains tax or will not be taxable at all, for example, if the participatory interest holder is tax exempt. Applicants are advised to consult with their tax advisors on this aspect.

For information and how to apply: Absa Capital
Shari'ah Top40 Exchange Traded Fund


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