Property Index Tracker Collective Investment Scheme in Securities, PropTrax, is an exchange traded fund (ETF), or index tracking fund, which will track the performance of the FTSE/JSE SAPY index (South Africa’s listed property index). PropTrax will provide investors with exposure to the top 20 listed property companies which have a primary listing on the JSE Limited, as weighted by their market capitalisation.

This innovative investment product is managed by Property Index Tracker Managers (Proprietary) Limited, a joint venture between Diversified’s Fortress Asset Managers and Madison Property Fund Managers.

“Substantial interest was expressed during the IPO and we are pleased with the results, especially in light of the 50bp hike in interest rates, the general feeling of unease with the markets experienced by certain investors and the subprime mortgage rate crisis hitting international markets during the IPO period,” says PropTrax’s Craig Hallowes.

“There has been a very positive response to PropTrax, even though it is a new product and ETFs are not all that familiar to retail investors. What has been encouraging, though, is the level of interest from individuals wanting to understand the product better and gain access to real estate in South Africa.  Between our brokers and ourselves, we have fielded an incredible number of calls. Not everyone has invested, but the message has been clear: South Africans are interested in real estate and the product is great in allowing them access to the market. Over and above this we do anticipate new flows from certain institutions, we have been in discussions with, in the months following listing,” notes Hallowes.

PropTrax is set to list on the main board of the JSE Limited on Tuesday, 25 September 2007. The PropTrax JSE sharecode will be PTXSPY. After listing, an investor will be able to purchase as little as one participatory interest on the secondary market.

Sanlam Investment Management, which has been managing index tracking portfolio schemes since 1988 and currently has in excess of R18 billion of index tracking portfolios’ assets under management, has been appointed asset manager of PropTrax.

PropTrax is regulated in terms of the Collective Investment Schemes Control Act, 45 of 2002, and is bound by the provisions of the JSE Listings requirements.

The PropTrax constituents below are extracted from the latest information provided by the JSE Limited available on 12 September 2007.

Constituent security                                       Relative weight (%)

Growthpoint Properties                                     20.86

Fountainhead Property Trust                               8.17

SA Corporate Real Estate Fund                           6.77

Redefine Income Fund                                       5.96

Hyprop Investments                                          6.94

Apexhi Properties -b-                                        5.87

Pangbourne Properties                                      5.67

Emira Property Fund                                         5.38

Apexhi Properties -a-                                       4.97

Sycom Property Fund                                       4.29

Resilient Property Income Fund                         3.74

Acucap Properties                                           3.70

Capital Property Fund                                     3.69

Madison Prop Fund Managers                           2.66

Vukile Property Fund                                      2 .09

Apexhi Properties -c-                                     1.81

Premium Properties                                       1.62

Octodec Investments                                    1.58

Diversified Property Fund                              1.46

iFour Properties                                           1.14

Hospitality Property Fund B                           1.12

Ambit Properties                                         0.91

Hospitality Property Fund A                          0.61