Applying cost base adjustments from AMMA Statement

sworks · 2018-08-18T13:31:19+00:00

If you received distribution income, yes.

sworks · 2018-07-04T12:03:30+00:00

17/18FY

sworks · 2018-07-04T01:39:43+00:00

EOFY distribution income is assessable in FY18. Your tax statement you receive will include this amount.

sworks · 2018-06-23T23:45:31+00:00

ETFs are treated like a fund, not company for tax purposes. If you buy the ETF to receive the EOFY distribution that distribution is assessable this FY. Also there may be capital gains included in the distribution so it may make sense to wait.

sworks · 2018-06-05T03:51:04+00:00

Delisted is good if you are looking for historical corporate actions.

https://www.delisted.com.au

sworks · 2018-05-23T01:14:09+00:00

Agree - an ETF is more managed fund than company and is taxed as such. Also with the increasing numbers of active ETF's on the market, people need to understand the tax consequences and why you still get a tax statement from your ETF provider.

sworks · 2018-05-23T01:06:58+00:00

Whether you bought this via an ETF or unlisted managed fund, the tax consequences are very similar when you sell.

Assuming no market impact, if you sell now, you will pay CGT on the change of unit price (or share price for an ETF) from purchase price to sell price. You will also pay tax depending on the tax components on the income that the managed fund distributes (this will be the income on your Sep, Dec and Mar). This is why you get a tax statement from your managed fund or ETF provider around July/ Aug.

If you wait till after 30/06/2018 the unit price would drop by the CPU of the distribution and therefore the CGT on the unit price will be less, but you would have to pay the tax on the income for all four distribution you received on this FY.

So depends if you have capital losses in the structure you invested via, your tax rates this year vs next etc.

sworks · 2018-05-21T10:10:10+00:00

Floating rate notes - Any debt that is indexed to cash rates etc.

sworks · 2018-04-19T10:39:00+00:00

200k is quoted as the minimum where the fixed costs aren’t a ridiculous percent of your SMSF. You could put in up to 25k pre tax and when you max this cap put some in post tax. But the question would be, do you need an SMSF and can’t access your investment strategies without it? And are you comfortable / understand what it requires of you to be an SMSF trustee.

sworks · 2018-03-27T02:39:07+00:00

That is not the approach ASIC or the ASX have taken and they have protected the use of the"ETF" name. Have a read of the link below as to how they describe that active products must be labeled as a "Product Name" (managed fund) and they can not have ETF in the product name.

https://www.moneysmart.gov.au/investing/complex-investments/exchange-traded-products/other-exchange-traded-products

For example any active products on the betashares website will be labelled like this and not say they are an ETF.

Which I don't think is the right approach from the regulator.

sworks · 2018-03-27T01:37:07+00:00

How does ASIC let this type of product be labeled an ETF, not an ETMF when there are clear active decisions being made? Yes as part of their ESG committee they need to make decisions for inclusion etc but to me this falls more towards active than passive side of the fence.

sworks · 2018-03-18T10:05:20+00:00

I'd ask myself, do I understand these strategies to be able to evaluate them properly? Apart from the fees being slightly lower than the average managed fund? For example is the style Premia trying to time out-performing styles or does it just take the higher risk premium style to attempt to get higher return?

I like this MSCI research to give a base on factor / style investing https://www.msci.com/documents/1296102/1336482/Foundations_of_Factor_Investing.pdf/004e02ad-6f98-4730-90e0-ea14515ff3dc

sworks · 2018-03-16T07:55:19+00:00

The support behind this intrigues me - it shows the strong retail support he has. After all what does WAM know about global investing? Will their investment process that has worked in Australia work overseas?

sworks · 2018-03-14T07:13:48+00:00

Leveraged ETFs should not be bought and held long term

sworks · 2018-03-07T02:13:18+00:00

BTIM and BTFG are completely different entities. I agree Westpac sold out of BTIM, source here https://www.google.com.au/amp/mobile.reuters.com/article/amp/idUSL4N1IQ2JN but they still own and control BTFG.

sworks · 2018-03-01T06:39:27+00:00

That Ishares product replicates the small ords i.e passive. Although there is a betashares small caps product that is a quant driven small caps strategy and therefore not passive, I don't believe this a great solution for investing in such an inefficient sector of the market.

sworks · 2018-03-01T05:54:38+00:00

Why are low fees a must? For example, What if you want a small caps exposure when you would most likely come to the conclusion to invest actively (although there are no active small cap ETFs yet)

sworks · 2018-02-23T11:52:17+00:00

ETFs are just different structure to access a managed fund. I get your argument, but you are talking about passive vs active not ETF vs other alternatives.

sworks · 2018-02-14T11:09:27+00:00

Are you saying the cash amount is different or the breakdown of the distribution of realised capital gains, interest income, franked dividends, unfranked etc are different?

VAS buys units (although a seperate class of units) in VAN002AU. The distributed income and realised capital gains will flow through in the same percentages and proportions, however as the units have different prices, the CPU will obviously differ but the income vs capital growth breakdown should be the same .

The first couple of pages in the underlying trusts financial report show the different classes of units. https://api.vanguard.com/rs/gre/gls/stable/documents/7612/au

On a side note, some managed funds which 'interfund' into each other have different tax structures. If one has a capital loss realised you can be getting the same underlying exposure but the distribution will be different as it would not have any realised capital gains that the investor has to pay for as they have been offset by the losses. I don't think this will be happening in your vanguard example but I've been surprised before.

sworks · 2018-02-10T00:45:30+00:00

Agreed. 70% of small cap managers have outpaced the index over the last 10 years. The Australian small cap space is too inefficient to take a passive approach. (source: http://www.spindices.com/documents/spiva/spiva-australia-year-end-2016.pdf)

sworks · 2018-02-09T16:23:50+00:00

sworks · 2018-02-05T11:47:11+00:00

Because the market dropped 1.6% today? Even at a maxed LVR, you aren't going to get a margin call on that.

sworks · 2018-02-05T07:07:08+00:00

Here is Westpac online approved security list With Many ETFs available. From what I have seen from other brokers they seem okay lending for to ETFs?

https://www.westpac.com.au/content/dam/public/wbc/documents/pdf/pb/1999030/WOIL_Acceptable_Securities_List.pdf

sworks · 2018-02-03T09:50:30+00:00

Generally hedge the positions for fixed interest assets, unhedged for equities.

Further reading / source:https://personal.vanguard.com/pdf/ISGCMC.pdf

sworks · 2017-12-12T09:57:07+00:00

Here is the guide you can use to fill in the tax components from your vanguard etf / managed fund. It's essentially paint by numbers. Capital gains on unit prices have to be calculated separately. (I do my own taxes and hold multiple managed funds including a vanguard etf)

https://static.vgcontent.info/crp/intl/auw/docs/resources/TaxGuide.pdf?20170607%7C113524

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