Four New AMIT Compliant Funds Launched

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One Investment Group is pleased to announce it has launched four funds compliant with the Attribution Managed Investment Trust regime today.

This enables the funds to apply a more streamlined approach to distributing trust income to investors, through the ‘attribution model’ which replaces the current ‘present entitlement’ model. The funds will also enjoy other benefits which are outlined below.

The benefits the funds will enjoy as a result of meeting the AMIT eligibility conditions are that the funds gain access to seven sets of rules, namely:

  • the income attribution mechanism, which includes amounts in the assessable income of unitholders based on their entitlements;
  • a formal system to allow errors in calculating taxable income (referred to as ‘unders and overs’) to be rectified by making adjustments in the year they are discovered;
  • cost base adjustment rules to increase (as well as decrease) the cost base of units for CGT purposes;
  • Certainty on the treatment of tax deferred distributions on capital account;
  • certain types of units issued by the entity will be treated as debt, both for the trust and the unitholder;
  • the ability to make an irrevocable election to treat income and assets attributable to a class of units as a separate AMIT; and
  • the trust is deemed to be a ‘fixed trust,’ which has important consequences for the trust loss and franking provisions.

One Investment Group members are a leading provider of trustee, custody, investment management and registry services to managed investment trusts and is pleased to be an early adopter of the new Attribution Managed Investment Trust regime