Correction: Distribution Announcement For The Quarter Ended 31 December 2020 - NFEMOM2021/02/23 12:00:00
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Correction: Distribution Announcement For The Quarter Ended 31 December 2020 - NFEMOM NEWFUNDS EQUITY MOMENTUM EXCHANGE TRADED FUND PORTFOLIO Share code: NFEMOM ISIN: ZAE000162236 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') CORRECTION: DISTRIBUTION AND RE-INVESTMENT ANNOUNCEMENT FOR THE QUARTER ENDED 31 DECEMBER 2020 Holders of Newfunds Equity Momentum Exchange Traded Fund Portfolio securities are referred to the announcement released on SENS on Tuesday, 14 January 2021 regarding a quarterly distribution by Newfunds Equity Momentum Exchange Traded Fund Portfolio to holders of these securities. As such, this announcement is a correction to the distribution finalisation announcement published on Tuesday, 14 January 2021. Furthermore, holders of Newfunds Equity Momentum Exchange Traded Fund Portfolio securities are advised of the update to the Net Distribution (Cents per unit) of the S64N dividend only: Alpha code Dividend/Interest Foreign/ Local Gross Subject to *Withholding Net Distribution Withholding tax Tax (%) Distribution (Cents per unit) Yes/ No (Cents per unit) NFEMOM Interest Local 0.01920 No 0.01920 Dividend Local 0.14812 Yes 20 0.11850 Dividend Foreign1 2.20165 Yes 20 1.76132 Dividend Foreign² (CFR)***S64N 0.05906 Yes 5 0.05171 Dividend Foreign² (PRX)***S64N 0.10537 Yes 10 0.08969 2.53340 2.04041 Further details are listed below: ¹Source of foreign dividends subject to SA dividend tax: United Kingdom 100.00% ²Source of foreign dividends (S64N) subject to SA dividend tax: Netherlands 35.92% Switzerland 64.08% NET FOREIGN DIVIDEND NOT TAXED (S64N rebate) CFR PRX Gross Dividend 0.25158 0.34323 Less Porfolio costs (0.10446) (0.18637) Gross Distribution 0.14712 0.15686 Foreign Withholding Tax on Gross dividend (0.08805) (0.05148) Amount Available for distribution 0.05906 0.10537 SA Dividend Withholding tax on gross distribution (0.00736) (0.01569) Net distributable 0.05171 0.08969 ****COMPAGNIE FINANCIERE RICHMONT SA (CFR) Distribution - 35% withholding tax has been deducted at source. 20% is reclaimable from the Swiss authorities as per SA-Swiss DTA. An additional 5% SA withholding tax is to be deducted by the relevant regulated intermediaries from SA residents who are not exempt from SA dividend tax. As a result, the initial withholding tax rate for non-exempt SA shareholders will be 40%. **** PROSUS (PRX) Distribution - 15% withholding tax has been deducted at source. 5% is reclaimable from the Netherlands authorities as per SA - Netherlands DTA. An additional 10% SA withholding tax is to be deducted by the relevant regulated intermediaries from SA residents who are not exempt from SA dividend tax. As a result, the initial withholding tax rate for non-exempt SA shareholders will be 25%. *Investors should seek advice from their tax advisor on whether the tax rate shown is applicable to them. Notice is hereby given that the following dates are of importance in regard to the distribution by the above ETF for the quarter ended 31 December 2020: Declaration/ Finalisation date Thursday, 14 January 2021 Last day to trade “cum” distribution Tuesday, 19 January 2021 Securities trade “ex” distribution Wednesday, 20 January 2021 Record date Friday, 22 January 2021 Payment date Monday, 25 January 2021 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. 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. ***Compagnie Financiere Richemont SA is a Switzerland listed Company. The dividends received have been subject to 35% withholding tax. ***Prosus NV is a Netherlands listed Company. The dividends received have been subject to 15% 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: 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 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 NFEMOM 8,490,250 9400119179 23 February 2021 Sponsor Vunani Sponsors Date: 23-02-2021 12:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.