Attribution Managed Investment Trust Regime ( AMIT Regime )

Transcription

1 Attribution Managed Investment Trust Regime ( AMIT Regime ) OnePath Funds Management Limited (OnePath) gives notice that it proposes to make amendments to the constitutions of Registered Schemes (Funds) to facilitate the operation of them under the new AMIT Regime from 1 July The Funds are offered through the products listed below and a full list of Funds is shown in the Schedule on page 4. OneAnswer Frontier Investment Portfolio OneAnswer Investment Portfolio OneAnswer Investment Portfolio//Select ANZ OneAnswer Investment Portfolio ANZ OneAnswer Investment Portfolio//Select OptiMix Trusts OnePath Wholesale Trusts OptiMix Wholesale Trusts ANZ Master Trusts ANZ Mortgage Fund ANZ Direct Managed Investment Trusts What is the purpose of this notice? To inform unit holders in the Funds that: 1. OnePath has decided to opt-in to the AMIT Regime from 1 July 2017; and 2. OnePath will amend the constitutions of the Funds to facilitate their operation under the AMIT Regime from 1 July The amendments to be made are summarised in the table on page 3. What is the AMIT Regime? It is a new tax regime applying to managed investment schemes enacted on 5 May 2016 under the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act In order for the AMIT Regime to apply, OnePath must make an election to opt-in to the AMIT Regime. Under the current tax regime, the net income of a Fund is allocated to unit holders based on the unit holder s proportionate share of the income of the Fund to which they are presently entitled. Under the AMIT Regime, unit holders will be taxed on the taxable income that is attributed to them by a Fund on a fair and reasonable basis. Under this approach a Fund can attribute an amount of taxable income to unit holders that is greater than the cash paid. If this occurs AMIT ensures an upward cost base adjustment to units (for the amount attributed in excess of cash) to avoid any potential double taxation in the hands of unit holders. At this stage, OnePath intends to continue with its current distribution practice and will attribute a Fund s taxable income in proportion to the cash distributed to each unit holder. However this practise may change in future. If however a Fund receives an attribution amount from an underlying investment that is greater than the cash paid, electing to opt-in to the AMIT Regime will minimise the potential for double taxation in the hands of unit holders. 1

2 Why is OnePath electing to opt-in to the AMIT Regime? OnePath has decided to elect for the AMIT Regime to apply to each of the Funds commencing from 1 July In making this decision, OnePath considered a range of factors, including the following benefits: Certainty - as to the tax status of the Funds. The AMIT Regime deems each Fund to be a fixed trust, which provides important certainty for the Fund to be eligible for certain tax concessions such as offsetting trust losses. Flexibility. The AMIT Regime provides greater flexibility in attributing, on a fair and reasonable basis, taxable income between unit holders. Administrative efficiency. The AMIT Regime offers administrative efficiency for reconciling under or overdistributions of taxable income of a Fund ("unders" or "overs"). For example, under the AMIT Regime adjustments to unit holder distributions can be made in the year of discovery, rather than requiring amendments to unit holder tax returns previously lodged (as otherwise would be required). If the Funds do not elect to opt-in to the AMIT Regime, unit holders can reasonably expect annual tax statements to be re-issued from time to time due to unders or overs. Prevention of double taxation. The AMIT Regime provides the ability to make upward cost base adjustments to Fund units where cash distributions are less than the taxable income attributed to unit holders. In the absence of this, unit holders may be taxed twice on certain amounts attributed to them. Why is OnePath proposing changes to the Constitutions? To enable the Funds to be effectively and efficiently operated under the AMIT Regime, certain clauses will be added or amended in the Constitutions which govern the way the Funds are operated. What do unit holders need to do? Unit holders of the Funds should note the proposed amendments that OnePath will make to the constitutions of the Funds. Unit holders should note that OnePath will proceed to amend the constitution of each Fund as proposed on or after the day which is 7 days from the date of this notice. The amendments will be made unless OnePath receives requests to call and arrange a meeting of unit holders of the Fund to consider and vote on a special resolution to modify the Constitution as proposed, from unit holders with at least 5% of the votes that may be cast on the resolution. Should OnePath within 7 days from the date of this notice receive requests to call and arrange a meeting of unit holders from unit holders with at least 5% of the votes that may be cast on the resolution at the meeting, it will call a meeting of unit holders. You will receive notice of a meeting in writing if this is required. If you wish to request a meeting of unit holders of a Fund to vote on the amendments please note the below: This request must be made in writing; The request should include your investor number, your full name and state that you wish to call a vote of unitholders in relation to the AMIT Regime changes; and The request should be sent to anz.investments@ Alternatively you can send a letter to: The AMIT Manager OnePath GPO Box 75 Sydney NSW 2001 The request (whether made by or mail) must be received by us by Friday 7th April If you have questions about this notice or the proposed amendments, please contact: your financial adviser; or our contact centre on

3 What are the Proposed Amendments to the Constitutions? OnePath will amend the constitutions so that the Funds can be effectively and efficiently operated under the AMIT Regime. OnePath will make these amendments prior to 1 July The amendments are summarised below. Amendment Eligibility for AMIT Regime Clearly Defined Rights Distributable income, distribution and accumulation, attribution Description of the amendment The Clearly Defined Rights requirement means that unit holders must have clearly defined rights to income and capital and is one of the criteria a Fund must meet to be able to elect to opt-in to the AMIT Regime. A new provision will be inserted stating that any powers, rights or discretions of OnePath, inconsistent with the Fund satisfying the Clearly Defined Rights requirement, will be void. The existing provisions for determination of distributable income on present entitlement basis are retained and will apply for financial years to which the AMIT Regime does not apply. A new provision requires distributable income for financial years to which the AMIT Regime applies to include the trust components that have an assessable income character, together with additional amounts OnePath considers appropriate (e.g. amounts referable to the discount capital gains concession). A new provision to defer distribution of the distributable income for financial years to which the AMIT Regime applies to a later distribution period in the same financial year, or accumulate and not distribute the distributable cash. A new provision provides the basis for attribution of components of taxable income to unit holders. It addresses specific requirements of the AMIT Regime, such as a fair and reasonable basis for attributions and that attributions must not be based on the tax characteristics of the unit holder. A new provision provides the basis for attribution of the components of taxable income to unit holders to reflect any election which OnePath may make for separate classes of units in the Fund to be treated as separate tax entities under the AMIT Regime. New powers and protecting OnePath and unit holders as a result of powers and rights provided under the AMIT Regime New provisions provide OnePath with general powers, which include electing to opt-in to the AMIT Regime and powers otherwise necessary or desirable to operate the Fund under the AMIT Regime. New provisions provide OnePath with specific powers which are expected to be necessary for the Fund to operate under the AMIT Regime, including determining taxable income components, making attributions to unit holders and issuing member statements for that purpose. New provisions clarifying OnePath will not be liable in respect of, or as a consequence of, the exercise of powers provided to it for the purposes of the AMIT Regime. New provisions seek to provide for OnePath to require unit holders and former unit holders to provide certain indemnities for tax and related costs and expenses incurred by OnePath. A new provision gives OnePath a power to redeem a member s units to satisfy a right of indemnity under the AMIT Regime. A new provision seeks to impose certain procedural requirements on unit holders and former unit holders if they are seeking to exercise their objection rights under the AMIT Regime, and provides OnePath with certain powers with respect to how such objections are dealt with. Incidental Changes Incidental changes have been made to facilitate the proposed amendments; for example, to include specific definitions referable to the AMIT Regime. 3

4 SCHEDULE OF FUNDS IMPACTED Active Growth Trust ANZ Australian Cash Fund ANZ Australian Industrial Equities Fund ANZ Cash Plus Fund ANZ Enhanced Yield Fund ANZ Equity Imputation Trust ANZ Equity Trust No ANZ Fixed Income Fund ANZ Fixed Interest Trust ANZ Listed Property Trust Fund ANZ Mortgage Fund ANZ OA Arrowstreet Global Equity (Hedged) Trust ANZ OA Capital Group Global Equity (Hedged) Trust ANZ OA Colonial First State Imputation Trust ANZ OA Investors Mutual Australian Share Trust ANZ OA Magellan Global Trust ANZ OA OnePath Active Growth Trust ANZ OA OnePath Australian Share Trust ANZ OA OnePath Balanced Trust ANZ OA OnePath Blue Chip Imputation Trust ANZ OA OnePath Cash Trust ANZ OA OnePath Conservative Trust ANZ OA OnePath Diversified Fixed Interest Trust ANZ OA OnePath Global Emerging Markets Share Trust ANZ OA OnePath High Growth Trust ANZ OA OnePath Income Plus Trust ANZ OA OnePath Income Trust ANZ OA OnePath Managed Growth Trust ANZ OA OnePath Mortgage Trust ANZ OA OnePath Property Securities Trust ANZ OA OnePath Select Leaders Trust ANZ OA OnePath Sustainable Investments - Australian Share Trust ANZ OA OnePath Tax Effective Income Trust ANZ OA OptiMix Australian Fixed Interest Trust ANZ OA OptiMix Australian Share Trust ANZ OA OptiMix Conservative Trust ANZ OA OptiMix Global Share Trust ANZ OA OptiMix Global Smaller Companies Share Trust ANZ OA OptiMix Growth Trust ANZ OA OptiMix High Growth Trust ANZ OA OptiMix Moderate Trust ANZ OA OptiMix Property Securities Trust ANZ OA Perpetual Australian Share Trust ANZ OA Schroder Australian Equity Trust ANZ OA SG Hiscock Property Trust ANZ OA UBS Diversified Fixed Income Trust ANZ OneAnswer - BR Scientific Australian Equity Trust ANZ OneAnswer - BR Scientific International Equity Trust

5 ANZ Private Global Equities (Actively Hedged) Fund ANZ Private Global Equities Trust ANZ Private International Fixed Interest Fund ANZ Property Securities Trust Australian Share Trust Balanced Trust Blue Chip Imputation Trust Blue Chip Pool Emerging Companies Trust Global Share Trust Heine Property Securities Fund High Growth Trust Income Plus Trust Monthly Income Trust OneAnswer Capital Group Global Equity (Hedged) Trust OneAnswer - Altrinsic Global Value Equities Trust OneAnswer - AMP Capital Responsible Investment Leaders Australian Share Trust OneAnswer - AMP Capital Responsible Investment Leaders International Share Trust OneAnswer - ANZ Cash Advantage OneAnswer - ANZ Flexible Term Deposit Fund OneAnswer - Arrowstreet Global Equity (Hedged) Trust OneAnswer - Ausbil Australian Emerging Leaders Trust OneAnswer - Bennelong Australian Equities Trust OneAnswer - Bentham Global Income Trust OneAnswer - BlackRock Scientific Australian Equity Trust OneAnswer - BR Balanced Trust OneAnswer - BR Scientific Diversified Growth Trust OneAnswer - BR Scientific International Equity Trust OneAnswer - BT Smaller Companies Trust OneAnswer - BT Wholesale Core Australian Share Trust OneAnswer - Colonial First State Global Credit Income Trust OneAnswer - Colonial First State Imputation Trust OneAnswer - Fidelity Australian Equities Trust OneAnswer - Goldman Sachs Income Plus Trust OneAnswer - Henderson Australian Equity Trust OneAnswer - Henderson Global Fixed Interest Total Return Trust OneAnswer - Investors Mutual Australian Share Trust OneAnswer - Kapstream Absolute Return Income Trust OneAnswer - Magellan Global Trust OneAnswer - Merlon Australian Share Income Trust OneAnswer - MFS Global Equity Trust OneAnswer - OnePath Global Property Securities Fund OneAnswer - OnePath Protected AUS 50 Trust OneAnswer - Perennial Value Shares Trust OneAnswer - Perpetual Australian Share Trust OneAnswer - Perpetual Balanced Growth Trust OneAnswer - Perpetual Conservative Growth Trust OneAnswer - Platinum Asia Trust OneAnswer - Platinum International Trust OneAnswer - RARE Infrastructure Value Trust OneAnswer - Schroder Australian Equity Trust

6 OneAnswer - Schroder Balanced Trust OneAnswer - Schroder Fixed Income Trust OneAnswer - Schroder Real Return Trust OneAnswer - SG Hiscock Property Trust OneAnswer - T. Rowe Price Global Equity Trust OneAnswer - UBS Balanced Trust OneAnswer - UBS Defensive Trust OneAnswer - UBS Diversified Fixed Income Trust OneAnswer - Vanguard Australian Shares Index Trust OneAnswer - Vanguard Balanced Index Trust OneAnswer - Vanguard Conservative Index Trust OneAnswer - Vanguard Growth Index Trust OneAnswer - Vanguard High Growth Index Trust OneAnswer - Vanguard Index Diversified Bond Trust OneAnswer - Vanguard International Shares Index (Hedged) Trust OneAnswer - Vanguard International Shares Index Trust OneAnswer - Vanguard Property Securities Index Trust OneAnswer - Walter Scott Global Equity (Hedged) Trust OneAnswer - Zurich International Shares Trust OnePath AJ Mortgage Fund OnePath Alternatives Growth Fund OnePath Capital Guaranteed Trust OnePath Capital Stable Trust OnePath Cash Trust OnePath Diversified Fixed Interest Trust OnePath Diversified High Yield Pool OnePath Diversified High Yield Trust OnePath Geared Australian Shares Index Trust OnePath Global Emerging Markets Pool OnePath Global Emerging Markets Share Trust OnePath Low Volatility Global Equities Index Pool OnePath Managed Growth Trust OnePath Mortgage Trust No OnePath Select Leaders Trust OnePath Sustainable Investments - Australian Share Trust OnePath Sustainable Investments - Wholesale Australian Share Trust OnePath Wholesale Australian Share Trust OnePath Wholesale Balanced Trust OnePath Wholesale Blue Chip Imputation Trust OnePath Wholesale Capital Stable Trust OnePath Wholesale Diversified Fixed Interest Trust OnePath Wholesale Emerging Companies Trust OnePath Wholesale Global Emerging Markets Share Trust OnePath Wholesale Geared Australian Shares Index Trust OnePath Wholesale High Growth Trust OnePath Wholesale Index Balanced Trust OnePath Wholesale Index Conservative Trust OnePath Wholesale Index Moderate Trust OnePath Wholesale Managed Growth Trust OnePath Wholesale Property Securities Trust OnePath Wholesale Protected Aus 50 Trust

7 OnePath Wholesale Select Leaders Trust OptiMix Australian Fixed Interest Trust OptiMix Australian Share Trust OptiMix Balanced Trust OptiMix Conservative Trust OptiMix Enhanced Cash Trust OptiMix Global Emerging Markets Share Trust OptiMix Global Share Trust OptiMix Global Smaller Companies Share Trust OptiMix Growth Trust OptiMix High Growth Trust OptiMix Moderate Trust OptiMix Property Securities Trust OptiMix Wholesale Australian Fixed Interest Trust OptiMix Wholesale Australian Inflation Linked Bonds Trust OptiMix Wholesale Australian Share Trust OptiMix Wholesale Balanced Trust OptiMix Wholesale Conservative Trust OptiMix Wholesale Enhanced Cash Trust OptiMix Wholesale Global (Hedged) Share Trust OptiMix Wholesale Global Emerging Markets Share Trust OptiMix Wholesale Global Share Trust OptiMix Wholesale Global Smaller Companies Share Trust OptiMix Wholesale Growth Trust OptiMix Wholesale High Growth Trust OptiMix Wholesale International Fixed Interest Trust OptiMix Wholesale International Property Securities Trust OptiMix Wholesale Moderate Trust OptiMix Wholesale Property Securities Trust Pooled Australian Share Fund Property Securities Trust Small Companies Pool Tax Effective Income Trust is the issuer of this information. The issuer is a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ABN ) (ANZ). ANZ is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). Although the issuer is owned by ANZ the issuer is not a Bank. Except as described in any relevant Product Disclosure Statement (PDS), an investment with the issuer is not a deposit or other liability of ANZ or its related group companies and none of them stands behind or guarantees the issuer or the capital or performance of an investment. An investment is subject to investment risk, including possible repayment delays and loss of income and principal invested. This information is current as at March 2017 and may be subject to change. Updated information will be available free of charge by contacting Customer Services on or by visiting The information provided is of a general nature and does not take into account an investor's personal needs, financial circumstances or objectives. Before acting on this information, an investor should consider the appropriateness of the information, having regard to their needs, financial circumstances and objectives. An investor should read the relevant PDS available at anz.com or and consider whether a particular product is right for them before making a decision to acquire or continue to hold the product. 7