In a notable announcement that could impact investor sentiment and share prices, Lion Global Investors Limited, the manager of the Lion-OCBC Securities APAC Financials Dividend Plus ETF (the “Fund”), has declared a dividend payout of S\$0.0125 per SGD Class unit. This distribution is tax-exempt and is set to benefit unitholders who remain registered by the stipulated record date.

Key Dividend Details

• Dividend Amount: S\$0.0125 per SGD Class unit
• Ex-Dividend Date: 6 January 2025
• Record Date: 7 January 2025
• Distribution Payment Date: 31 January 2025

The dividend will be disbursed directly into unitholders’ bank accounts or sent via cheque to the addresses maintained with The Central Depository (Pte) Ltd. This tax-exempt distribution adheres to the Fund’s tax exemption status under Section 13D of the Singapore Income Tax Act 1947. The Fund’s exemption status will remain valid for its lifetime, provided it continues to meet all regulatory conditions.

What Shareholders Need to Know

The announcement contains several critical points that investors should note:

• Dividend distributions by the Fund are tax-exempt, which could enhance returns for unitholders.
• The Fund’s tax exemption status under Section 13D is contingent upon fulfilling the Monetary Authority of Singapore’s (MAS) regulatory requirements.
• The performance of the Fund is not guaranteed, and the value of units may fluctuate due to market conditions.

Shareholders should also be aware that dividend distributions, while promising, are not guaranteed and are subject to the discretion of the Manager. Any payout reduces the available capital for reinvestment, potentially impacting the net asset value (NAV) of the Fund.

Potential Market Impact

This announcement could influence the share price of the Lion-OCBC Securities APAC Financials Dividend Plus ETF, as dividends often signal financial health and stability, making the Fund potentially more attractive to investors. However, the disclaimer that the Fund’s performance is not guaranteed might temper investor expectations.

Disclaimer

This article is for informational purposes only and should not be taken as financial advice. Investors are encouraged to read the Fund’s prospectus and Product Highlights Sheet for more details, including risk factors and suitability. Past performance is not indicative of future results, and investments in ETFs carry risks, including potential loss of principal. Consult a licensed financial advisor before making investment decisions.