FirstRand Bank Limited (FRB) has announced the receipt of a dividend payment from Ford Motor Company, impacting the net asset value (NAV) of its exchange-traded notes (ETNs). The dividend, set at $0.15 per share, was synthetically reinvested for the FDETNC and FDETNQ ETNs at the US closing price on December 1, 2023.
In a statement released on December 4, 2023, FirstRand Bank outlined the key details of the dividend payment and its effects on the ETNs.
| Dividend per Share | $0.15 |
|---|---|
| Effective Tax Rate | 15% |
| Reinvestment Amount | $0.1275 per share |
| Reinvestment Price | $10.58 per share |
Ford Motor Company’s dividend, totalling $0.15 per share, underwent a synthetic reinvestment process, net of all taxes, charges, and fees. The result of this reinvestment is a fractional increase in the number of shares referenced by each ETN. Importantly, no direct distribution or payment will be made to ETN holders.
The daily published NAV has already been updated to reflect the impact of the synthetic dividend reinvestment. Investors can view the updated NAV on the RMB Inward Listed ETNs page.
For investors holding FDETNC and FDETNQ ETNs, the dividend payment and subsequent reinvestment influence the overall value of their holdings. The synthetic reinvestment mechanism, which adheres to published guidance, provides investors with an indirect benefit by increasing the fractional number of shares associated with each ETN.
FirstRand Bank Limited remains committed to providing transparency and timely updates to its investors. The synthetic dividend reinvestment from Ford Motor Company underscores the dynamic nature of investment instruments, impacting the net asset value and potentially influencing investment strategies.
Investors are encouraged to review the updated NAV and leverage the provided resources for a comprehensive understanding of the dividend’s implications. For any specific queries or concerns, investors are advised to consult with their financial advisors.
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