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NFEMOM - Distribution and re-investment for the quarter ended 30 September 2016
NEWFUNDS EQUITY MOMENTUM ETF
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)
DISTRIBUTION AND RE-INVESTMENT ANNOUNCEMENT FOR THE QUARTER ENDED 30 SEPTEMBER 2016
Further to the announcement published on Thursday, 1 September 2016, a distribution has been declared today,
Thursday 13 October 2016 to holders of ETF securities ("investors") recorded in the register on Friday,
23 September 2016, for the quarter ended 30 September 2016 as follows:
Alpha Dividend/ Foreign/ Local Gross Subject to *Withholding Net
code Interest Distribution Withholding Tax (%) Distribution
(Cents per tax (Cents per
unit) Yes/ No unit)
NFEMOM Interest Local 0.05952 No 0.05952
Dividend Local 6.15758 Yes 15 5.23394
Dividend REITs** 0.00000 Yes **15 0.00000
Dividend Foreign (Other) 2.11624 Yes 15 1.79880
8.33334 7.09226
The distribution will be paid on Tuesday, 18 October 2016 to all securities holders recorded on the register on
Friday, 23 September 2016.
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 (comprising only 85% 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 1,200,000 9400119179
13 October 2016
Sponsor
Absa Bank Limited (acting through its Corporate and Investment Bank division)
Date: 13/10/2016 01:21:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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