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Distribution and re-investment announcement for the quarter ended 30 September 2020- NFEHGE
NEWFUNDS VOLATILITY MANAGED HIGH GROWTH EQUITY EXCHANGE TRADED FUND PORTFOLIO
Share code: NFEHGE
ISIN: ZAE000254876
Portfolios in the NewFunds Collective Investment Scheme in Securities registered as such in terms of the Collective Investmen t 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 SEPTEMBER 2020
NewFunds has today finalised a distribution to holders of ETF securities ("investors") recorded as such in the register on Friday, 23 October 2020, for the
quarter ended 30 September 2020 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)
NFEHGE Interest Local 1.47315 No 1.47315
Dividend Local 0.84128 Yes 20 0.67302
Dividend Foreign1 3.69120 Yes 20 2.95296
Dividend Foreign² (CFR)***S64N 0.53617 No 0.53617
6.54180 5.63530
Further details are listed below:
¹Source of foreign dividends subject to SA dividend tax:
UK 100.00%
²Source of foreign dividends not subject to SA dividend tax:
Switzerland 100.00%
Declaration/ Finalisation date Thursday, 15 October 2020
Last day to trade Tuesday, 20 October 2020
Ex distribution Wednesday, 21 October 2020
Record date Friday, 23 October 2020
Payment date Monday, 26 October 2020
The distribution will be paid on Monday, 26 October 2020 to all securities holders recorded on the register on Friday, 23 October 2020.
In accordance with the investment policy of the portfolio, the distribution (net of dividend withholding tax as detailed abov e) 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 in vestors' 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.
IVIDEND NOT TAXED (S64N rebate)
CFR
Gross Dividend 0.97060
Foreign Dividends Withholding Tax (0.33971)
0.63089
Less Porfolio costs (0.09472)
Distributable dividend 0.53617
SA Dividend Withholding Tax
Gross Dividend 0.97060
Less Portfolio Costs (0.09472)
0.87588
SA DWT 0.17518
SA tax 0.175 cents (20%) will not be deducted as foreign dividend withholding tax 35% of the gross dividend has already been deducted (SECTION 64N
of the Income Tax Act)
***Compagnie Financiere Richemont SA is a Switzerland listed Company. The dividends received have been subject to 35% 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 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 i f 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
NFEHGE 7,375,042 3710140173
15 October 2020
Sponsor
Vunani Sponsors
Date: 15-10-2020 08:00:00
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