This exchange traded fund (ETF), or index tracking fund, which tracks the performance of the FTSE/JSE SAPY index (South Africa’s listed property index), listed on the main board of the JSE Limited on Tuesday, 25 September 2007. 

PropTrax, which is managed by Property Index Tracker Managers (Proprietary) Limited, a joint venture between Diversified’s Fortress Asset Managers and Madison Property Fund Managers, provides investors with quarterly distributions.

PropTrax enables investors to gain investment exposure to the top 20 listed property companies which have a primary listing on the JSE Limited, as weighted by their market capitalisation. Its distribution will reflect an aggregation of the distribution on the underlying counters, all of which have performed extremely favourably.

The first PropTrax dividend distribution incorporates the distribution of listed property leaders including Growthpoint Properties, Fountainhead Property Trust, SA Corporate Real Estate Fund, ApexHi Properties A/B/C, Redefine Income Fund, Acucap Properties, Ambit Properties and Sycom Property Trust.

“PropTrax has been well traded during its first three months and retail demand remains strong.  It has served the purpose for which it was designed, namely to track the real estate index as closely as possible,” says PropTrax’s Craig Hallowes.

Hallowes explains that PropTrax intends to introduce an investment plan for smaller investors in 2008, which will include a debit order facility. Furthermore it is the fund’s intention to grow substantially over a three-year period, with its sights set on the R1 billion mark.

“There has been an especially positive response to PropTrax, even though it is a new product and ETFs are not all that familiar for retail investors. We will be participating in a JSE-Limited showcase on ETFs in the coming year, to educate investors as to the numerous features and benefits of ETFs, and PropTrax in particular,” notes Hallowes.