NEWFUNDS COLLECTIVE INVEST SCHEME – NFEMOM – Distribution and re-investment for the quarter ended 31 March 2019

2019/04/16 08:00:00
SENS announcement for JSE listed company: JSE General
                        

NFEMOM 201904160015A
NFEMOM – Distribution and re-investment for the quarter ended 31 March 2019

NEWFUNDS EQUITY MOMENTUM EXCHANGE TRADED FUND PORTFOLIO
Share code: NFEMOM
ISIN: ZAE000162236

Portfolios in the NewFunds Collective Investment Scheme in Securities registered as such in terms of the Collective Investment
Schemes Control Act, 45 of 2002 and managed by NewFunds (RF) Proprietary Limited (Registration Number 2005/034899/07)
(‘NewFunds’)

DISTRIBUTION AND RE-INVESTMENT ANNOUNCEMENT FOR THE QUARTER ENDED 31 MARCH 2019
NewFunds has today finalised a distribution to holders of ETF securities (‘investors’) recorded as such in the register on Friday, 26
April 2019, for the quarter ended 31 March 2019 as follows:

Alpha code Dividend/Interest Foreign/ Local Gross Subject to *Withholding Net
Distribution Withholding tax Tax (%) Distribution
(Cents per unit) Yes/ No (Cents per unit)
NFEMOM Dividend REITs** 11.91270 Yes Yes 9.53016
Dividend Foreign 1 10.56846 Yes 8.45477
Interest Local 0.09098 No 0.09098
Dividend Local 17.08613 Yes 20 13.66891
39.65828 31.74482

Further details are listed below:
1
Source of foreign taxable dividends:
United Kingdom 100.00%

Notice is hereby given that the following dates are of importance in regard to the distribution by the above ETF for the quarter ended 31
March 2019:

Declaration/ Finalisation date Tuesday, 16 April 2019
Last day to trade Tuesday, 23 April 2019
Ex distribution Wednesday, 24 April 2019
Record date Friday, 26 April 2019
Payment date Monday, 29 April 2019

The distribution will be paid on Monday, 29 April 2019 to all securities holders recorded on the register on Friday, 26 April
2019.
The net distribution amount (after the deduction of Dividend Withholding Tax (”DWT”) at a current rate of 20%) will be re-invested in
the ETF on behalf of investors through the purchase of additional Constituent Securities (as defined in the relevant Portfolio
Supplement) in the appropriate weightings, thereby increasing the net asset value of the ETF and, proportionately increasing the value
of each ETF security. As a consequence of reinvesting the net distribution amount (comprising only 80% after the deduction of DWT),
the ETF will be tracking the relevant total return net-of-dividend tax index.

Investors qualifying for exemption from DWT or a reduced rate of DWT per Double Tax Agreement (‘DTA’), will receive, in cash, a
distribution amount of the applicable DWT, provided they have completed and timeously lodged with the relevant intermediary the
prescribed declaration and undertaking form.
Failure to do so will result in the dividends tax being withheld in full.

Withholding Tax on Interest (WTI) came into effect on 1 March 2015.

Interest accruing from a South African source to a non-resident, excluding a controlled foreign company, will be subject to withholding
tax at a rate of 15% on payment, except interest,

• arising on any Government debt instrument
• arising on any listed debt instrument
• arising on any debt owed by a bank or the South African Reserve Bank
• arising from a bill of exchange or letter of credit where goods are imported into South Africa and where an authorized dealer has
certified such on the instrument
• payable by a headquarter company
• accruing to a non-resident natural person who was physically present in South Africa for a period exceeding 183 days in aggregate,
during that year, or carried on a business through a permanent establishment in South Africa

Investors are advised that to the extent that the distribution amount comprise of any interest, it will not be subject to WTI by
virtue of the fact that it is listed debt instruments and/or bank debt.
*Investors should seek advice from their tax advisor on whether the tax and rate shown is applicable to them.
South African tax resident investors relating to REITS
**The dividend distribution by a REIT received by South African tax residents must be included in their gross income and will
not be exempt in terms of the ordinary dividend exemption in section 10(1)(k)(i) of the Income Tax Act No. 58 of 1962 (‘the
Act’) as a result of paragraph (aa) of the proviso thereto which provides that dividends distributed by a REIT are not exempt
from income tax.
No dividend withholding tax will be deducted from dividends payable to a South African tax resident qualifying for exemption
from dividend withholding tax provided that the investor has provided the following forms to their Central Securities
Depository Participant (‘CSDP’) or broker, as the case may be in respect of its participatory interest:
a) a declaration that the distribution is exempt from dividends tax; and
b) a written undertaking to inform their CSDP or broker, as the case may be, should the circumstances affecting the
exemption change or the beneficial owner cease to be the beneficial owner,
both in the form prescribed by the South African Revenue Service. South African tax resident investors are advised to
contact their CSDP or broker, as the case may be, to arrange for the abovementioned documents to be submitted prior to
payment of the distribution, if such documents have not already been submitted.

Non-resident investors for South African income tax purposes
The dividend distribution received by non-resident investors will be exempt from income tax in terms of section 10(1)(k)(i) of
the Act, but will be subject to dividend withholding tax. Dividend withholding tax is levied at a rate of 20%, unless the rate is
reduced in terms of any applicable agreement for the avoidance of double taxation (‘DTA’) between South Africa and the
country of residence of the non-resident investor.
A reduced dividend withholding rate in terms of the applicable DTA may only be relied on if the non-resident investor has
provided the following forms to their CSDP or broker, as the case may be in respect of its participatory interest:
a) a declaration that the dividend is subject to a reduced rate as a result of the application of a DTA; and
b) a written undertaking to inform the CSDP or broker, as the case may be, should the circumstances affecting the reduced
rate change or the beneficial owner cease to be the beneficial owner, both in the form prescribed by the South African
Revenue Service. Non-resident investors are advised to contact their CSDP or broker, as the case may be, to arrange for the
abovementioned documents to be submitted prior to the payment of the distribution if such documents have not already
been submitted.

Both resident and non-resident investors are encouraged to consult their professional advisors should they be in any doubt as to the
appropriate action to take.

Additional information:
Number Tax
of securities reference
in issue number
NFEMOM 2,650,000 9400119179

16 April 2019

Sponsor
Absa Bank Limited (acting through its Corporate and Investment Banking division)

Date: 16/04/2019 08:00:00 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,
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information disseminated through SENS.

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