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NEWFUNDS COLLECTIVE INVEST SCHEME - NFEMOM - Distribution and Re-Investment for the quarter ended 31 March 2017

Release Date: 13/04/2017 10:09
Code(s): NFEMOM     PDF:  
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NFEMOM - Distribution and Re-Investment for the quarter ended 31 March 2017

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 31 MARCH 2017
Further to the announcement published on Monday, 06 March 2017, a distribution has been declared today, Thursday 13 April 2017 to
holders of ETF securities ("investors") recorded in the register on Friday, 24 March 2017, for the quarter ended 31 March 2017 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               Interest              Local                   0.01256          No                                          0.01256
                         Dividend              Local                   1.50041          Yes                  20                     1.20033
                         Dividend            REITs**                   0.00000          Yes                 **20                    0.00000
                         Dividend          Foreign (BIL)*              0.36202          No                                          0.36202
                                                                       1.87499                                                      1.57491

The distribution will be paid on Thursday 20 April 2017 to all securities holders recorded on the register on Friday, 24 March
2017.
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 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          Tax
                        securities         reference
                        in issue           number

NFEMOM                  1,600,000          9400119179


13 April 2017

Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited

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