10 January 2025 – Key Announcement for Shareholders: CSOP Asset Management Pte. Ltd., the manager of the CSOP iEdge S-REIT Leaders Index ETF, has declared a dividend distribution of S\$0.022 per unit for the period spanning from 1 July 2024 to 31 December 2024. This announcement is likely to impact investor sentiment and potentially influence share price movements.

Key Highlights of the Announcement

• Dividend Amount: S\$0.022 per unit.
• Distribution Period: 1 July 2024 to 31 December 2024.
• Important Dates:
  • Ex-dividend date: 20 January 2025
  • Record date: 21 January 2025
  • Payment date: 24 February 2025
• Tax Components:
  • Taxable income: S\$0.009795 per unit
  • Tax-exempt income: S\$0.005031 per unit
  • Capital component: S\$0.007174 per unit

Important Tax Implications for Shareholders

The tax treatment of the distribution varies based on the category of the unitholder. Here are the details:

• Gross Distribution (No Tax Deduction):
  • For individuals holding units in their sole names or jointly.
  • For Singapore-incorporated and tax-resident companies.
  • For Singapore branches of foreign companies.
  • For tax-exempt international organizations.
  • For non-corporate entities registered in Singapore (e.g., statutory boards, trade unions, charities).
• Reduced Tax Rate of 10%:
  • Applies to foreign non-individual unitholders or qualifying foreign funds that meet specific criteria.
• Standard Tax Deduction of 17%:
  • For all other unitholders who do not fall into the above-mentioned categories.

To qualify for gross or reduced-tax distributions, eligible unitholders must complete and submit the relevant tax declaration forms (Form A or Form B) by 5:00 PM on 6 February 2025. Failure to comply will result in tax being deducted at the prevailing rate of 17%.

Additional Considerations for Investors

Unitholders holding units under the Central Provident Fund Investment Scheme or the Supplementary Retirement Scheme do not need to submit any forms and will automatically receive gross distributions. The dividend distribution is subject to the tax transparency treatment applicable to real estate investment trusts (REITs) and other corporations listed on the Singapore Exchange (SGX).

The announcement also includes a reminder that dividend distributions are not guaranteed and are subject to the Manager’s discretion. Additionally, such distributions may reduce the available capital for reinvestment and impact the ETF’s net asset value.

Potential Impact on Shareholders and Market Sentiment

This announcement is significant as it directly affects shareholder returns and could influence the ETF’s market value. With a notable portion of the distribution classified as taxable income, shareholders should carefully evaluate their tax obligations and consult financial advisors for further guidance. The dividend declaration may bolster investor confidence, potentially driving trading activity and impacting share prices in the short term.