NEWFUNDS COLLECTIVE INVEST SCHEME - NFEVOL: Distribution and Re-Investment Announcement for the Quarter Ended 30 September 2018.

Release Date: 11/10/2018 13:40
Code(s): NFEVOL
 
Wrap Text
NFEVOL: Distribution and Re-Investment Announcement for the Quarter Ended 30 September 2018.

NEWFUNDS LOW VOLATILITY EXCHANGE TRADED FUND PORTFOLIO
Share code: NFEVOL
ISIN: ZAE000252458


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 2018
NewFunds has today finalised a distribution to holders of ETF securities ("investors") recorded as such in the register on Friday, 19 October 2018, for
the quarter ended 30 September 2018 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)

      NFEVOL                 Interest                Local                      0.05313          No                                             0.05313
                             Dividend                Local                      3.09149          Yes                  20                        2.47319
                             Dividend           Foreign (Other)                 2.65485          Yes                  20                        2.12388
                             Dividend           Foreign - CFR*                  1.08465          No                                             1.08465
                             Dividend              REITs**                      4.34282          Yes                 **20                       3.47426
                                                                               11.22694                                                         9.20911


Further details are listed below:

Source of monetary funds subject to foreign dividend tax:
United Kingdom                                                                                      100.00%

Source of foreign dividends not subject to dividend tax:
Switzerland                                                                                         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 30 September
2018:

Declaration/ Finalisation date                                     Thursday, 11 October
Last day to trade                                                  Tuesday, 16 October
Ex distribution                                                    Wednesday, 17 October
Record date                                                        Friday, 19 October
Payment date                                                       Monday, 22 October

The distribution will be paid on Monday, 22 October to all securities holders recorded on the register on Friday, 19 October 2018.
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 Government debt, listed debt instruments and/or bank debt.

*Investors should seek advice from their tax advisor on whether the tax rate shown is applicable to them.

* COMPAGNIE FINANCIERE RICHMONT SA (CFR) is a Switzerland listed Company. The dividends received have been subject to a 20%
withholding tax.

 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:
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                   Tax
                           of securities           reference
                              in issue              number

NFEVOL                      3,024,861            0461636268

11 October 2018

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

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