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NEWFUNDS COLLECTIVE INVEST SCHEME - NFEMOM - Distribution and re-investment for the quarter ended 30 June 2015

Release Date: 16/07/2015 17:25
Code(s): NFEMOM     PDF:  
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NFEMOM - Distribution and re-investment for the quarter ended 30 June 2015

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 Proprietary Limited
(Registration Number 2005/034899/07)

DISTRIBUTION AND RE-INVESTMENT ANNOUNCEMENT FOR THE QUARTER ENDED 30 JUNE 2015

Further to the announcement published on Wednesday, 03 June 2015, a distribution has been declared today,
Thursday 16 July 2015 to holders of ETF securities ("investors") recorded in the register on Friday, 26 June
2015, for the quarter ended 30 June 2015 as follows:

 Alpha code       Dividend/       Foreign/         Gross             Subject to    *Withholding   Net
                  Interest        Local            Distribution      Withholding   Tax (%)        Distribution
                                                   (Cents per        tax                          (Cents per
                                                   unit)             Yes/ No                      unit)

 NFEMOM           Interest        Local            0.04639           No                           0.04639
                  Dividend        Local            3.73597           Yes           15             3.17557
                  Dividend        REITs**          1.21764           No                           1.21764
                                                   5.00000                                        4.43960

The distribution will be paid on Tuesday, 21 July 2015 to all securities holders recorded on the register
on Friday, 26 June 2015.

The net distribution amount (after the deduction of Dividend Withholding Tax (''DWT'') at a current rate of 15%)
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 (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 15%, 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 of securities in issue          Tax reference number
 NFEMOM                         1 000 000                           9400119179

16 July 2015

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

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