SATRIX COLLECTIVE INVESTMENT SCHEME - Distribution Finalisation Announcement Quarter End 30 September 2018-STXRAF

Release Date: 12/10/2018 11:50
Code(s): STXRAF
 
Wrap Text
Distribution Finalisation Announcement Quarter End 30 September 2018-STXRAF

    SATRIX COLLECTIVE INVESTMENT SCHEME
    SATRIX RAFI 40
    JSE code: STXRAF
    ISIN: ZAE000126033
    (“Satrix RAFI 40”)

    A portfolio in the Satrix Collective Investment Scheme in Securities, registered as such in terms of the
    Collective Investment Schemes Control Act, 45 of 2002.

    DISTRIBUTION AND RE-INVESTMENT ANNOUNCEMENT FOR SEPTEMBER 2018

    Investors are advised that the Manager and Trustees of the Satrix Collective Investment Scheme (being
    Satrix Managers (RF) (Pty) Limited and Standard Chartered Bank), respectively, have declared a
    distribution to holders of Satrix RAFI 40 securities("investors”) recorded in the register on Friday, 19
    October 2018 in respect of the month ended 30 September 2018.

    An aggregated amount of 17.6700 ZAR cents (R 0.17670) per Satrix RAFI 40 security is declared as follows:
     Alpha           Dividend/        Foreign/        Source            Gros         Subject    Withholding        Net
      code            Interest          Local           of                s             to        Tax (%)     Distribution
                                                       funds         Distributi      Withhold                  (Cents per
                                                                      on (Cents      ing tax                      unit)
                                                                      per unit)      Yes/ No

STXRAF               Dividend           Local                              8.90534     Yes         20                7.12427
                     Dividend          Foreign          UK                 6.13760     Yes         20                4.91008
                     Dividend     (1)Foreign 64N       CHF                 1.84660     No                            1.84660
                     Dividend            REIT                              0.75365     Yes         20                0.60292
                     Interest           Local                              0.02681     No                            0.02681
                                                                          17.67000                                  14.51068

    Notice is hereby given that the following dates are of importance in regard to the distribution for the
    month of September 2018 by the ETF to holders of Satrix RAFI 40 securities:

    Last day to trade “cum” distribution:                 Tuesday, 16 October 2018
    Securities trade “ex” distribution:                   Wednesday, 17 October 2018
    Record date:                                          Friday, 19 October 2018
    Payment date :                                        Wednesday, 24 October 2018


    1 NET FOREIGN DIVIDEND NOT TAXED (S64N rebate)

    Gross dividend                                                  2.92863
    Foreign Dividends withholding tax                             (1.02502)
                                                                    1.90361
    Less portfolio costs                                          (0.05701)
    Distributable dividend                                          1.84660


    SA Dividend withholding tax
    Gross dividend                                                  2.92863
    Less portfolio costs                                          (0.05701)
                                                                    2.87162


    SA DWT                                                          0.57432


    SA tax 0.57432 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 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 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 (“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.

In accordance with the investment policy of Satrix RAFI 40 the distribution (excluding the dividends tax
as detailed above) will be re-invested on behalf of investors through the purchase of securities
comprising the FTSE/JSE RAFI 40 Index in accordance with the calculation methodology of the total return
version of this Index, thereby increasing the net asset value of Satrix RAFI 40 and, proportionately,
each Satrix RAFI 40 security.

The distribution (excluding the dividend tax as detailed above) will:

-       where Satrix RAFI 40 securities are held on capital account be added
        to the base cost of each Satrix RAFI 40 security for capital gains
        tax purposes; or
-       where Satrix RAFI 40 securities are held as trading stock be
        regarded as part of the cost of acquiring a Satrix RAFI 40 security.



Sandton

12 October 2018

Sponsor:
Vunani Corporate Finance

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