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Distribution and Re-Investment Announcement for the Quarter Ended 30 September 2019 - NFEVAL
NEWFUNDS EQUITY VALUE EXCHANGE TRADED FUND PORTFOLIO
Share code: NFEVAL
ISIN: ZAE000252466
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 SEPTEMBER 2019
NewFunds has today finalised a distribution to holders of ETF securities ("investors") recorded as such in the register on Friday, 1 November 2019, for the quarter ended
30 September 2019 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)
NFEVAL Interest Local 0.09688 No 0.09688
Dividend Local 5.50595 Yes 20 4.40476
Dividend Foreign1 1.55709 Yes 20 1.24567
Dividend Foreign (CFR)***S64N 0.76958 No 0.76958
7.92950 6.51689
Further details are listed below:
1
Source of monetary funds subject to foreign dividend tax:
United Kingdom 73.79%
Australia 26.21%
***Source of foreign dividends not subject to dividend tax:
United Kingdom 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 2019:
Declaration/ Finalisation date Wednesday, 23 October 2019
Last day to trade Tuesday, 29 October 2019
Ex distribution Wednesday, 30 October 2019
Record date Friday, 1 November 2019
Payment date Monday, 4 November 2019
The distribution will be paid on Monday, 4 November 2019 to all securities holders recorded on the register on Friday, 1 November 2019.
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.
NET FOREIGN DIVIDEND NOT TAXED (S64N
rebate)
CFR
Gross Dividend 1.10432
Foreign Dividends Withholding Tax (0.22086)
0.88346
Less Portfolio costs (0.11388)
Distributable dividend 0.76958
SA Dividend Withholding Tax
Gross Dividend 1.10432
Less Portfolio Costs (0.11388)
0.99044
SA DWT 0.19809
SA tax 0.198 cents (20%) will not be deducted as foreign dividend withholding tax has already been deducted (SECTION 64N)
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 20% 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.
***Compagnie Financiere Richemont is a Switzerland listed Company. The dividends received have been subject to 20% withholding tax.
*Investors should seek advice from their tax advisor on whether the tax 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:
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
NFEVAL 12 018 416 0460621261
23 October 2019
Sponsor
Vunani Corporate Finance
Date: 23/10/2019 08:00:00
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