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NEWFUNDS COLLECTIVE INVEST SCHEME - Distribution and Re-Investment Announcement for the Quarter Ended 30 June 2019 - NFEMOD

18 July 2019 - 17:15 PM
NFEMOD
Distribution and Re-Investment Announcement for the Quarter Ended 30 June 2019 - 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 2019
NewFunds has today finalised a distribution to holders of ETF securities ("investors") recorded as such in the register on Friday, 26 July 2019, for the quarter
ended 30 June 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)
NFEMOD                   Interest                   Local                  0.12031                 No                                       0.12031
                         Dividend                   Local                  4.20332                 Yes                  20                  3.36266
                         Dividend                   Foreign1               1.61924                 Yes                  20                  1.29539
                         Dividend                   Foreign (ANH)*** (S64N)0.62218                 No                                       0.62218
                         Dividend                   REITs**                3.88199                 Yes                  20                  3.10559
                                                                           10.44704                                                         8.50613


Further details are listed below:
1
  Source of monetary funds subject to foreign dividend tax:
United Kingdom                                                                                                100.00%

***Source of foreign dividends not subject to dividend tax:
Europe                                                                                                        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 June 2019:

Declaration/ Finalisation date                                                Thursday, 18 July 2019
Last day to trade                                                             Tuesday, 23 July 2019
Ex distribution                                                               Wednesday, 24 July 2019
Record date                                                                   Friday, 26 July 2019
Payment date                                                                  Monday, 29 July 2019

The distribution will be paid on Monday, 29 July 2019 to all securities holders recorded on the register on Friday, 26 July 2019.

The net distribution amount (after the deduction of Dividend Withholding Tax (''DWT'') at a current rate of 20%) will be re-invested in the ETF on behalf of
investors through the purchase of additional Constituent Securities (as defined in the relevant Portfolio Supplement) in the appropriate weightings, thereby
increasing the net asset value of the ETF and, proportionately increasing the value of each ETF security. As a consequence of reinvesting the net distribution
amount (comprising only 80% after the deduction of DWT), the ETF will be tracking the relevant total return net-of-dividend tax index.

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)
                                                                        ANH
Gross Dividend                                                     0.98659
Foreign Dividends Withholding Tax                                 (0.29598)
                                                                   0.69061
Less Porfolio costs                                               (0.06843)
Distributable dividend                                             0.62218

SA Dividend Withholding Tax
Gross Dividend                                                     0.98659
Less Portfolio Costs                                              (0.06843)
                                                                   0.91816
SA DWT                                                             0.18363

SA tax (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 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.
*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

NFEMOD                         5 564 374                 3709136174

18 July 2019

Sponsor
Vunani Corporate Finance

Date: 18/07/2019 05:15:00
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