EasyETFs’ ASBI ETF Faces Final Liquidation, Unveiling Distribution Details and Tax Implications

  • Winding-Up Approval: EasyETFs' ASBI ETF receives approval for winding up from the Financial Sector Conduct Authority, effective December 29, 2023.
  • Distribution and Dates: Unitholders will receive a final distribution, recorded on December 29, with payments on January 2, 2024.
  • Tax Implications: The liquidation triggers Capital Gains Tax events, and unitholders are advised to consult tax consultants for guidance.
By Lethabo Ntsoane

EasyETFs (RF) Proprietary Limited, the manager of the EasyETFs Scheme, has received approval from the Financial Sector Conduct Authority for the winding-up of the EasyETFs S&P African Sovereign Bond ETF (ASBI ETF). Unitholders are urged to take note of the key details surrounding this final liquidation.

Winding-Up Approval and Effective Date

The ASBI ETF, a portfolio under the EasyETFs Scheme, has been slated for winding up, with the effective date set for December 29, 2023. The decision follows the manager’s application to the Financial Sector Conduct Authority and subsequent approval, as announced on SENS on August 3, 2023, with updates on November 6, 2023.

Distribution Details

In light of the liquidation, the manager and trustees (EasyETFs (RF) Proprietary Limited and FirstRand Bank Limited, through Rand Merchant Bank Trustee Services Division) have declared a distribution to ASBI ETF holders. This distribution, to be recorded in the register on Friday, December 29, 2023, will be detailed in a finalization announcement on SENS. Trading in ASBI ETF is now suspended.

Salient Dates

EventDate
Declaration dateThursday, December 7, 2023
Last day to tradeThursday, December 14, 2023
Publication of informationFriday, December 22, 2023
Record dateFriday, December 29, 2023
Payment dateTuesday, January 2, 2024
Termination of listingWednesday, January 3, 2024

Payments and Administration

Payments will take the form of a final distribution, the rate of which will be disclosed in the finalization announcement on SENS. The administration of these payments will be handled by Strate Proprietary Limited, deposited into relevant controlled or non-controlled securities accounts.

Tax Implications

Unitholders are alerted to the Capital Gains Tax (CGT) implications associated with the winding-up of the ASBI ETF. CGT events may trigger tax liabilities at the next income tax assessment. Unitholders are strongly advised to seek guidance from their tax consultants to navigate the potential tax implications.

Closing Thoughts

With the winding-up approval granted, the ASBI ETF’s journey concludes on December 29, 2023. Unitholders are encouraged to stay informed about the finalization details, distribution rates, and tax implications, as communicated through SENS. The termination of listing on January 3, 2024, marks the conclusion of this chapter for the ASBI ETF.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo