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Distribution And Re-Investment Announcement For The Quarter Ended 30 June 2022 - NFEMOD
NEWFUNDS VOLATILITY MANAGED MODERATE EQUITY EXCHANGE TRADED FUND PORTFOLIO
Share code: NFEMOD
ISIN: ZAE000254884
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 30 JUNE 2022
NewFunds has today finalised a distribution to holders of ETF securities ("investors") recorded as such in the register on Friday, 22 July 2022, for the
quarter ended 30 June 2022 as follows:
Alpha code: NFEMOD Dividend Dividend Tax Reclaim *Interest Total
Distribution Source type Local Foreign SA Listed Foreign SA listed Local
Net Distribution Reinvested Yes Yes Yes Yes
Source of Funds (Country Code) ZA GB BE (ANH) ZA
Subject to Foreign Withholding tax No No No No
Gross Foreign Rate (cents per unit) 0,73070 0,06654
Foreign Tax % withheld at source
Foreign Tax amount per unit
DTA with Source Country
Foreign Tax Reclaim %
Portfolio/Management Cost
Interest Expense
Other costs
Gross ZA Distribution (Cents per unit) 8,04545 0,73070 0,06654 2,92522 11,76791
***Applicable to non-exempt South African shareholders
Gross Local Rate (cents per unit) 8,04545 0,73070 0,06654 2,92522
SA Withholding Tax % 20% 20%
SA Withholding Tax amount per unit 1,60909 0,14614
Local Net Rate 6,43636 0,58456 0,06654 2,92522 10,01268
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 June 2022:
Declaration/ Finalisation date Thursday, 14 July 2022
Last day to trade “cum” distribution Tuesday, 19 July 2022
Securities trade “ex” distribution Wednesday, 20 July 2022
Record date Friday, 22 July 2022
Payment date Monday, 25 July 2022
The distribution will be paid on Monday, 25 July 2022 to all securities holders recorded on the register on Friday, 22 July 2022.
In accordance with the investment policy of the portfolio, the distribution (net of dividend withholding tax as detailed above) will be re-invested on behalf
of investors through the purchase of securities comprising the Index in accordance with the calculation methodology of the total return version of this
Index, thereby increasing the net asset value of the portfolio and, proportionately, each ETF security.
The distribution (Net of dividend withholding tax) should:
- be added to the base cost of each ETF security for capital gains tax purposes; or
- where the ETF securities are held as trading stock be regarded as part of the cost of acquiring an ETF security.
Reinvestments into the portfolio still constitute a notional distribution even though it will not be paid in cash. Consequently, it forms part of investors'
gross income as it is subject to tax.
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.
*Investors should seek advice from their tax advisor on whether the tax rate shown is applicable to them.
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.
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
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 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
NFEMOD 5 564 374 3709136174
Thursday, 14 July 2022
JSE Sponsor
Vunani
Date: 14-07-2022 08:30:00
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