Important tax update - AMIT status

FIL Responsible Entity (Australia) Limited (FREAL) is the responsible entity of the funds set out below.

FREAL considers that one or more of the Funds will not qualify as either a managed investment trust (“MIT”) or an attribution managed investment trust (“AMIT”) for the 2019-2020 Financial Year starting on 1 July 2019 (the "Year") based on the current investor profile.

The MIT/AMIT status of each Fund for the Year is set out below.

Fund name ARSN MIT/AMIT status
Fidelity Australian Equities Fund 103420088 AMIT
Fidelity Australian Opportunities Fund 159055722 AMIT
Fidelity Future Leaders Fund 164470606 AMIT
Fidelity Hedged Global Equities Fund 093163869 AMIT
Fidelity China Fund 11607264 AMIT
Fidelity Global Equities Fund 093163672 AMIT
Fidelity India Fund 093164679 AMIT
Fidelity Asia Fund 116072498 AMIT
Fidelity Global Demographics Fund 160557353 AMIT
Fidelity Global Emerging Markets Fund 165837150 AMIT
Fidelity Global Emerging Markets Fund (Managed Fund) 627296959 AMIT
Fidelity Global Low Volatility Equity Fund 622269434 Non-MIT
(from 1 July 2019)
Fidelity FIRST Global Fund 617169365 Non-MIT
(from 1 July 2019)

A Fund categorised as a Non-MIT for the Year will also cease to qualify as an AMIT for the same Year. 

The main consequence of a Fund being categorised as a Non-MIT for the Year is that gains realised by the relevant Fund from 1 July 2019 will be revenue gains and taxed as income, not capital gains, when distributed to investors. This means investors of the relevant Fund will no longer benefit from the capital gains tax (“CGT”) discount on distributions of any long-term gains realised by the relevant Fund after 30 June 2019. 

A change in a Fund’s MIT/AMIT status on 1 July 2019 should not impact the taxation treatment of:

  • Distributions (if any) made in July 2019 out of any capital gains realised by the relevant Fund in the year ended 30 June 2019 (I.e. the CGT discount can apply to July 2019 distributions of long-term capital gains);
  • Any capital gain or loss realised by investors on disposing of units in a Non-MIT Fund (whether before or after 30 June 2019).

A Non-MIT Fund may requalify as a MIT/AMIT for future financial years if more investors subscribe.

Due to the complexities of Australian tax law, it is recommended that you seek professional tax advice if the taxation consequences are important to your decision to invest, or remain invested, in the Fund.