NikkoAM-StraitsTrading Asia ex Japan REIT ETF Announces Dividend Distribution: What Investors Need to Know
Investors in the NikkoAM-StraitsTrading Asia ex Japan REIT ETF (the “Fund”) recently received an update regarding the dividend distribution for the period from 1 November 2024 to 31 January 2025. Here are the key points to take away from the announcement.
Dividend Distribution Details
The manager of the Fund, Nikko Asset Management Asia Limited, 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 subject to tax transparency treatment for income received from real estate investment trusts (REITs) or corporations listed on the Singapore Exchange Securities Trading Limited.
Breakdown of the Dividend Distribution
The dividend distribution is comprised of several components:
Qualifying S-REIT distribution: S$0.0022598
Capital: S$0.0042048
Tax-exempt income: S$0.0019280
Other income and gains from disposal of securities: S$0.0033074
The total distribution of S$0.0117 per unit is a combination of these components.
Tax Implications and Key Considerations
Tax Treatment for Holders: The dividend 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 Holders: Holders who are not considered “Qualifying Individuals” (as defined by the Singapore tax regulations) will be required to declare this distribution as taxable income in their tax returns unless they are exempt due to their own circumstances.
Important Information for Investors
Definition of Qualifying Individual: A “Qualifying Individual” refers to 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 Obligations: For investors who are not “Qualifying Individuals,” the distributions received will be subject to income tax. They are required to declare the gross income distribution in their tax returns unless exempt.
Non-Resident Investors: For qualifying foreign non-individual investors, distributions will be received after deduction of tax at a rate of 10%. All other investors, excluding those classified as Qualifying Investors, will receive distributions after deduction of tax at a rate of 17%.
Investment Considerations and Risks
Investment Risks: Investments in the Fund are subject to investment risks, including the possible loss of the principal amount invested. The value of units and income from them may fall or rise.
Past performance or any prediction, projection, or forecast is not indicative of future performance.
The performance of the ETF’s price on the Singapore Exchange Securities Trading Limited (“SGX-ST”) may be different from the net asset value per unit of the ETF.
Other Key Points to Consider
The DUT scheme has expired on 31 March 2019. However, the Fund may continue to enjoy the Designated Unit Trust (“DUT”) status if it continues to meet all the specified conditions of the DUT scheme and submits the annual declaration form to the IRAS within the specified time limit.
What Should Investors Do Next?
Given the information provided, investors should:
Consider consulting with a financial advisor to understand the implications of this dividend distribution on their investment portfolios and tax obligations.
Review the prospectus and product highlights sheet of the Fund before making any investment decisions.
Disclaimer
The information contained in this article is for informational purposes only and should not be considered as investment advice. Nikko Asset Management Asia Limited accepts no liability for any loss, indirect or consequential damages arising from the use of or reliance on this document.
Investors should conduct thorough research and consider their financial situation and goals before making any investment decisions. The performance of the ETF’s price on the Singapore Exchange Securities Trading Limited may differ from its net asset value per unit. Investments in the Fund are subject to market risks, including possible loss of principal amount invested.
For more information, please refer to the official documentation and Nikko Asset Management Asia Limited’s website (https://www.nikkoam.com.sg/).
This article is based on the information provided in the PDF document from Nikko Asset Management Asia Limited.
The article aims to provide an informative overview and should not be considered as personalized financial advice. Readers are encouraged to consult with a financial advisor or conduct their own research before making investment decisions.
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