When are the II ETF tax statements available?

Only investors who hold units on June 30 and have received a distribution during the financial year will receive a tax statement.

The tax statements will be sent to you by the share registry (search your email inbox for emails from comms@linkmarketservices.com.au) and will also be available for download from the share registry's website:

All unit trusts (the traditional structure for managed funds and the structure for the Intelligent Investor funds) pay out all realised income annually. This requirement is due to the unit trust not being the taxable legal entity. Therefore, all realised taxable income must be distributed to the unit holders.

The distribution from all unit trusts comprises all realised capital gains plus dividends and other income for the year minus capital losses and expenses.

The 2021/22 financial year was exceptional for the Intelligent Investor funds.

Several of our most significant positions (e.g., Sydney Airport) were subject to takeovers, and the portfolio manager Nathan Bell profited from several positions before the downturn. So the unusually large June 2022 distribution is down to Nathan’s active fund’s management.

Index Exchange-Traded Funds (ETFs) pay distributions to unit holders similarly. However, they are not actively managed and are not taking profit from positions. Instead, they’re only realising capital gains when rebalancing when new constituents come into the index.

This link to the ATO website helps explain how to add managed fund distributions to your tax return, and this one is about capital gains included in trust distributions.

The statement will be emailed to all clients from the share registry and can also be downloaded via the share registry.

Need access to the share registry? See Funds share registry & adding/updating your investor details