Dividends on SatrixNOW FAQs

A dividend is a payment made by a company to its shareholders from its profits. ETFs pay dividends earned from the underlying stocks held in the ETF.

Dividends are specifically linked to the profits of individual companies, while distributions encompass various types of income generated by investment funds and trusts, aggregated dividends, interest, and capital gains earned by the fund's holdings.

The distribution period varies across the different Satrix funds, however, most ETFs distribute every quarter, while most unit trusts distribute bi-annually.

For distributing funds, the underlying companies pay dividends intra-quarter (in the case of funds that are distributed quarterly) and these distributions are accrued for payment after quarter end.

Once the dividend distribution calculation is done, an announcement is published through the JSE, which highlights important dates about the distribution as well as the amount per unit holding for ETFs. The important dates include:

• Dividend declaration date

• Last Day to Trade (LDT)

• Ex-dividend date

• Record date

• Payment date

To qualify for an ETF dividend payment, you need to consider the SENS distribution announcement which stipulates the following important dates:

1. Last Day to Trade (LDT): This is the last date you can buy ETF units to qualify for the dividend.

2. Ex-dividend Date: Is the date before which your purchase order must be executed to receive the dividend. Purchasing your units on this day will mean you do not qualify to receive dividends.

Yes, dividends are paid on both whole shares and fractional share rights.

When your Satrix ETF or unit trust fund makes a distribution payment, you can manage this amount by choosing either to:

• Automatically re-invest it, or

• Have it paid into your SatrixNOW cash account.

Updating Distribution Preferences:

• Profile Level: Access your Account Preferences under the Profile menu to view and modify your distribution preference settings.

• For Individual Funds: You can also set distinct distribution preferences for each Satrix fund by selecting the "Dividend Payout Preference" option for that specific fund via the cog icon on your account overview page.

Important:For Tax Free Savings Accounts (TFSA): Distributions received in your TFSA do not count towards the annual limit of R36 000.

Distributions are allocated to holders based on the specific Satrix fund in which the investor holds securities. For detailed information regarding distributions, visit our product page for specific fund distribution details.

Distributions are calculated as follows:

• Fund Income: This includes dividends received from the underlying constituents of the fund, interest income, and scrip lending income (if applicable)

• Fund Expenses: These cover fees incurred to manage the fund, including management fees paid to Satrix Managers, custodian fees, auditor fees, bank charges, brokerage, and taxes.

The dividend yield of a Satrix security may not precisely match that of the underlying index due to the following reasons:

1. Timing of Dividend Payments: Dividends from Satrix portfolios are typically paid monthly or quarterly. However, the underlying index adjusts its Dividend Yield daily, causing potential variations in reported yield figures.

2. Frequency of Dividend Payments: The frequency of dividend payments in Satrix portfolios may differ from how the underlying index calculates its yield, leading to discrepancies between the reported dividend yields.