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SCRIP LENDING

 

In the fund

Bips funds may lend out their underlying assets from time to time. This is done in strict compliance with CISCA and collateral is always held against loan positions. The income generated from scrip lending is applied to the fund and is therefore to the benefit of investors.

In terms of CISCA, the manager may lend out a maximum of 50% of the fund's value.

ETF Securities

Bips ETFs may be sold short on the JSE. As with all other listed instruments, short selling may only occur if the seller has a scrip lending facility in place to ensure settlement of the trade.

This creates an opportunity for holders of Bips ETFs to generate income on their holding. Long holders may be able to lend their securities to short-sellers for a fee; the quantum of which is determined by the market.