NikkoAM-StraitsTrading Asia ex Japan REIT ETF Announces Dividend Distribution of S\$0.0117 per Unit

Key Points to Consider for Retail Investors

Nikko Asset Management Asia Limited has announced a dividend distribution of S$0.0117 per unit for the NikkoAM-StraitsTrading Asia ex Japan REIT ETF for the period from 1 November 2024 to 31 January 2025. This article aims to provide a detailed breakdown of the distribution and its implications for shareholders.
Dividend Distribution Details
The dividend distribution of S$0.0117 per unit for the NikkoAM-StraitsTrading Asia ex Japan REIT ETF is comprised of several components:
Qualifying S-REIT Distribution: S$0.0022598 per unit
Capital Component: S$0.0042048 per unit
Tax Exempt Income: S$0.0019280 per unit
Other Income and Gains: S$0.0033074 per unit
Tax Implications and Investor Categories
Taxable Income Component: Certain components of the distribution are subject to tax, and the tax treatment varies depending on the investor’s category.
Qualifying Individuals: Not subject to tax on this distribution and do not need to declare it in their Singapore tax returns.
Non-Qualifying Individuals and Entities: The beneficial owner, other than a “Qualifying Individual,” is liable to Singapore Income Tax on the amount of gross income distribution.
Distribution Breakdown and Tax Treatment
The distribution is subject to tax transparency treatment for distributions received by the Fund from real estate investment trusts or corporations listed on the Singapore Exchange Securities Trading Limited.
For Qualifying Foreign Non-Individual Investors: Distributions will be made after deduction of tax at a rate of 10%.
For All Other Investors (excluding Qualifying Investors): Distributions will be made after deduction of tax at a rate of 17%.
Important Considerations for Shareholders
Definition of Qualifying Individual: An individual whose receipt of the distribution is not considered as gains or profits from any trade, business, or profession carried on by him/her and is not derived from units held through a partnership in Singapore.
Tax Exemptions and Liabilities: The tax treatment of the distribution varies based on the investor’s category and the nature of the income.
Investment and Market Considerations
Investments in the NikkoAM-StraitsTrading Asia ex Japan REIT ETF are subject to investment risks, including the possible loss of the principal amount invested.
Past Performance: Not indicative of future performance.
Use of Financial Derivative Instruments: The Fund or any underlying fund may use or invest in financial derivative instruments.
Additional Information
CPF and SRS Investments: Investors should note that only monies in excess of $20,000 in OA and $40,000 in SA can be invested under the CPF Investment Scheme (“CPFIS”).
Interest Rates: The Central Provident Fund (“CPF”) Ordinary Account (“OA”) interest rate is the legislated minimum 2.5% per annum, or the 3-month average of major local banks’ interest rates, whichever is higher, reviewed quarterly.
Conclusion and Disclaimer
The NikkoAM-StraitsTrading Asia ex Japan REIT ETF’s dividend distribution of S$0.0117 per unit is a critical update for investors, particularly in terms of tax implications and distribution components. The performance of the ETF’s price on the Singapore Exchange Securities Trading Limited (“SGX-ST”) may differ from the net asset value per unit of the ETF.
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NikkoAM-StraitsTrading Asia ex Japan REIT ETF Dividend Distribution: What Investors Need to Know

Detailed Analysis:
The NikkoAM-StraitsTrading Asia ex Japan REIT ETF, with the SGX Stock Code: CFA and Bloomberg Ticker: AXJREIT SP, has announced a dividend distribution of S$0.0117 per unit for the period from 1 November 2024 to 31 January 2025. This distribution is a result of the Fund’s investment activities and is subject to tax transparency treatment.
Key Components of the Distribution
Qualifying S-REIT Distribution: S$0.0022598 per unit
Capital Component: S$0.0042048 per unit
Tax Exempt Income: S$0.0019280 per unit
Other Income and Gains: S$0.0033074 per unit
Tax Treatment
The distribution is subject to tax transparency treatment.
Beneficial owners, other than Qualifying Individuals, are required to declare the gross income distribution as taxable income.
A “Qualifying Individual” refers to an individual not carrying on any trade, business, or profession and not holding units through a partnership in Singapore.
Investor Categories and Tax Rates
Qualifying Foreign Non-Individual Investors: Distributions will be made after deducting 10% tax.
All Other Investors (excluding Qualifying Investors): Distributions will be made after deducting 17% tax.
Investment Considerations
Investors should be aware of the following:
Investment Risks: Investments in the Fund are subject to risks, including possible loss of principal.
Past Performance: Not indicative of future results.
Financial Derivative Instruments: The Fund may use or invest in these instruments.
Important Notice
This document is for informational purposes only and should not be relied upon as financial advice. Investors should consider whether the investment is suitable for their specific investment objectives, financial situation, and particular needs.
Disclaimer
The information contained in this article may not be copied, reproduced, or redistributed without the express consent of Nikko Asset Management Asia Limited. While reasonable care has been taken to ensure the accuracy of the information, Nikko AM Asia does not give any warranty or representation and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Nikko AM Asia accepts no liability for any loss or consequential damages arising from the use of or reliance on this document.
Investors should seek professional advice before making any investment decisions.
For more information, investors can refer to the Nikko Asset Management Asia Limited website at www.nikkoam.com.sg.
Related Article: If you’re interested in learning more about REITs and their potential benefits and risks, consider consulting with a financial advisor or visiting the Nikko Asset Management Asia Limited website.
Invest in the NikkoAM-StraitsTrading Asia ex Japan REIT ETF with Caution
Before investing, it’s essential to understand that the value of units and income from them may fall or rise. Investments in the Fund are subject to investment risks, including the possible loss of the principal amount invested.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Investors should read the relevant prospectus and product highlights sheet of the Fund, available on the Nikko Asset Management Asia Limited website or obtained from appointed distributors, before making any investment decisions. The performance of the ETF’s price on the Singapore Exchange Securities Trading Limited (“SGX-ST”) may differ from the net asset value per unit of the ETF.

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