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ASHBURTON MANAGEMENT COMPANY (RF) PROPRIETARY LIMITED - ASHMID - Distribution Announcement

Release Date: 14/10/2021 17:45
Code(s): ASHMID     PDF:  
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ASHMID - Distribution Announcement

Ashburton Management Company RF Proprietary Limited
Ashburton MidCap ETF
A portfolio in the Ashburton Collective Investment Scheme in Securities Exchange Traded Funds (“the
portfolio”) registered in terms of the Collective Investment Schemes Control Act, 45 of 2002
(Incorporated in the Republic of South Africa)
(Date of incorporation: 15 August 2012)
Share Code: ASHMID
ISIN: ZAE000215349
(“ASHMIDCAP” or the “ETF” or the “fund”)


DISTRIBUTION ANNOUNCEMENT


The manager and trustees (namely Ashburton Management Company RF Proprietary Limited and
Standard Chartered Bank) have resolved to make a quarterly distribution to holders of Ashburton MidCap
ETF securities for the quarter ended 30 September 2021.


The aggregate distribution will amount to 10.15828 cents per Ashburton MidCap ETF security and is
constituted as follows:


                                                        Dividend (64N                 Other
 Alpha Code: ASHMID            Dividend   Dividend                      *Interest               REIT      Total
                                                        =/< DTA)                      Income
                                          Foreign SA    Foreign SA
 Distribution Source type      Local                                    Local         Local     Local
                                          Listed        Listed
 Net Distribution Reinvested   No         No            No              No            No        No
 Source of Funds (Country
                               ZA         Table 1       UK              ZA            ZA        ZA
 Code)
 Subject to Foreign
                               No         No            Yes             No            No        No
 Withholding tax
 Gross Foreign Rate (cents
                                                        0.00423
 per unit)
 Foreign Tax % withheld at
                                                        20%
 source
 Foreign Tax amount per unit                            0.00085
 DTA with Source Country                                10%
 Foreign Tax Reclaim %
 Portfolio/Management Cost
 Interest Expense
 Other costs
 Gross ZA Distribution
                               7.78561    1.43025       0.00338         0.02761       0.20281   0.70862   10.15828
 (Cents per unit)

 Gross Local Rate (cents per
                               7.78561    1.43025       0.00338         0.02761       0.20281   0.70862
 unit)
 SA Withholding Tax %          20%        20%           0%                                      Note 1
 SA Withholding Tax amount
                               1.55712    0.28605       0.00000
 per unit
 Local Net Rate                6.22849    1.14420       0.00338         0.02761       0.20281   0.70862   8.31510

 Foreign Dividends Breakdown by Source:

 Table 1
                                                                                    Tax withheld at
 Country                                    ISO Code              Split
                                                                                      Source (%)
 Great Britain                                    GB              42%                     0%
 Isle of Man                                      IM              39%                     0%
 Luxembourg                                       LU              19%                     0%



Note 1. Distributions by Real Estate Investment Trusts (REITs) are subject to income tax for South African
tax residents, and subject to 20% withholding tax for non-residents. The net distribution to non-residents is
therefore 0.56689 cents per security.


Notice is hereby given that the following dates are of importance regarding the distribution for the quarter
ended 30 September 2021 by the ETF to holders of Ashburton MidCap ETF securities:


Last day to trade “cum” distribution:                        Tuesday, 19 October 2021
Securities trade “ex” distribution:                        Wednesday, 20 October 2021
Record date:                                                  Friday, 22 October 2021
Payment date:                                                 Monday, 25 October 2021

Creations or redemptions from the fund will not be allowed during the period from 19 October 2021
to 22 October 2021, both days inclusive.


*Withholding Tax on Interest (“WTI”) came into effect in April 2012 and was amended 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; or
    •    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 comprises 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.


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 (“CDSP”) 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, 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 Income Tax Act No.58 of 1962 (“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 ceases 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:

The dividend distribution as outlined above is subject to the Dividends Tax that was introduced with effect
from 1 April 2012 and was amended on 22 February 2017. The dividend, as defined in the Act, is payable
from dividends accumulated in the fund. The South African Dividend Tax rate of 20% has been applied.



There are 78,752,103 Ashburton MidCap ETF securities in issue. The total distribution amount payable is
R 7,999.855.55.



Ashburton MidCap ETF Income Tax number is 0036/883/26/2.
A copy of the ETF issue document can be found at:
https://www.ashburtoninvestments.com/za/individual-investor/fund/ashburton-midcap-
etf/zae000215349


14 October 2021
Johannesburg


Debt Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)

Date: 14-10-2021 05:45:00
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