Below is the June 2023 financial year distribution and tax information for each of our funds.
The end of the financial year is a busy time for us. In addition to determining and paying the final year-end distribution for each fund, we also complete tax calculations and finalise tax statements for investors. We will also be finalising investment statements, preparing fund accounts and arranging to have them audited.
Each of our Affluence fund portfolios comprises a range of investments including a range of unlisted funds and LICs. Our year-end processes rely on each of those fund managers to provide us with data to complete our calculations. This does take some time and means that some procedures tend to take a little longer in July than in other months. Please bear with us.
Affluence Investment Fund
Below are our estimated dates for the Affluence Investment Fund 2023 end of financial year processes. As each item is completed, we will update the information.
| Event | Target Date |
| Release of June 2023 unit price | 11 July 2023 |
| Payment of June 2023 distribution | 11 July 2023 |
| Distribution/reinvestment advices sent | 11 July 2023 |
| Release of June 2023 Fund Report | 20 July 2023 |
| Annual Investment statements | 31 August 2023 (pending) |
| Annual Tax statements | 31 August 2023 (pending) |
Once calculations are completed, unit pricing, distribution and tax information for the Fund will be updated here.
Affluence LIC Fund
Below are our estimated dates for the Affluence LIC Fund 2023 end of financial year processes. As each item is completed, we will update the information.
| Event | Date |
| Release of June 2023 unit price | 11 July 2023 |
| Payment of June 2023 distribution | 11 July 2023 |
| Distribution/reinvestment advices sent | 11 July 2023 |
| Release of June 2023 Fund Report | 20 July 2023 |
| Annual Investment statements sent | 01 August 2023 |
| Annual Tax statements sent | 01 August 2023 |
Once calculations are completed, unit pricing, distribution and tax information for the Fund will be updated here.
Affluence Small Company Fund
Below are our estimated dates for the Affluence Small Company Fund 2023 end of financial year processes. As each item is completed, we will update the information.
| Event | Target Date |
| Release of June 2023 unit price | 11 July 2023 |
| Payment of June 2023 distribution | 11 July 2023 |
| Distribution/reinvestment advices sent | 11 July 2023 |
| Release of June 2023 Fund Report | 20 July 2023 |
| Annual Investment statements sent | 01 September 2023 |
| Annual Tax statements sent | 01 September 2023 |
Once calculations are completed, unit pricing, distribution and tax information for the Fund will be updated here.
How we decide whether to pay a higher June distribution
Like all managed funds, the Affluence Funds do not pay tax directly. Instead, Fund investors are allocated a share of the taxable income of the Fund each financial year. This allocation is based on each investors share of the distributions paid to them during the year and is set out in an annual tax (or AMMA) statement.
The taxable income to be allocated in Fund investors usually includes a range of different taxable components, such as dividends, distributions, interest, foreign income and capital gains, as well as associated tax credits.
In June each year, we estimate the type of value of these taxable components for each Fund, based on what has been received for the year to date, plus estimates provided from underlying fund managers. We use this information to decide how much to pay for the final distribution of the tax year (paid 10 July). Where the taxable income for a given year exceeds our target distribution of 5% per annum, we will pay a higher June distribution. Our aim in doing this, is to make sure that any taxable income for investors does not exceed the amount of the cash distributions paid to them.
The taxable amount can be quite different to actual returns generated by the Fund for each year. The main factor which impacts this is the amount and timing of capital gains. For tax purposes, capital gains generally only realised, and taxable, when an investment is sold.
Historically, Affluence Funds have paid a higher distribution in most years (6 out of 9 years for the Affluence Investment Fund, 5 out of 7 years for the Affluence LIC Fund and 4 out of 4 years for the Affluence Small Company Fund). For the 2023 financial year, the amount of realised capital gains was relatively low in each Fund, as we had less turnover of investments than in prior years. Thus, the Affluence Investment Fund and Affluence LIC Fund did not pay any additional (special) distribution for the year. The Affluence Small Company Fund did generate additional capital gains during the year, and paid a higher June distribution amount.
Distributions are not the same as total returns
It is important to note that there is almost always a difference between distributions and total returns. This difference results in a change (increase or decrease) in the unit price. For example, the Affluence LIC Fund generated total returns of 8.1% for the 2023 financial year. Monthly distributions accounted for approximately 5.9% of this return. The balance 2.2% came by way of an increase in the LIC Fund unit price during the year.
Ultimately, it’s the total returns that matter most, and that’s where we focus most of our efforts. In the example above, had a 1% lower distribution been paid, the unit price would have increased by 1% more, such that the total return (distribution plus change in unit price), would have been the same.
Want to know more?
If you have any questions regarding your investment, please do not hesitate to contact us or your financial advisor.
Thank you for your continued support. It means a lot to us.
If you’d like to learn more about how to report income and claim deductions for managed investment trusts, the ATO has published information on their website here.
