Dear Valued Unit Holders,
We wish to draw your attention to the Inland Revenue Board’s directive, effective 1 July 2022, on Tax Treatment concerning Income Received from Abroad (Amendment) stating that any income distribution derived from foreign funds, also known as “Foreign-Source Income” (FSI), for all unit trusts invested outside Malaysia, will be subjected to FSI Tax at the prevailing rate of 24%.
This directive affects fund prices, including the BIMB-ARABESQUE i Global Dividend Fund 1 (BiGDF1). Coupled with the adverse global market movements in 2022 that impacted target funds’ performance and income distribution capabilities, the management regrets informing investors that we are not able to distribute income made for BiGDF1 for the financial year ending 31 March 2023.
The current price of BiGDF1 is RM1.00 per unit. After a 10% or RM0.10 per unit dividend (assuming no tax reduction is allowed), the fund will bear the FSI tax of RM0.10 x 24% = RM0.024 per unit. As a result of this tax, the price of BiGDF1 will decrease to RM0.9760 per unit, which is a 2.4% decline in value.
We greatly appreciate investors’ trust and are committed to providing value to investors. We will make every effort to ensure income distribution in the future, subject to the income performance and based on realised income for the period.
Please get in touch with us at email@example.com or +603-21612524 (General Line) / 1800-88-1196 (Toll-Free) for any enquiries.