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Managed Fund CGT - Perpetual Wealth Focus Investment Advantage

Discussion in 'Managed Funds & Index Funds' started by evisional, 12th May, 2016.

  1. evisional

    evisional Well-Known Member

    23rd Aug, 2007
    I am investing in Perpetual Wealth Focus Investment Advantage platform. A large amount of my investments are in Perpetual Geared Australian fund. Last financial year, this fund gave a very large amount of distributions on 30 June 2015. As a result, I had to pay for considerable CGT on this fund distributions. This was out of my control. I was so upset about this.

    One of feature of the Perpetual Wealth Focus Investment Advantage platform is "Switch investment options without triggering CGT"

    ATO Product Ruling No. PR 2012/7 (Product Ruling 2012/7) for this Perpetual Wealth Focus Investment Advantage platform says:

    "changing the Investor?s Portfolio Structure (see paragraph 20(c) of this Ruling), will not constitute a
    CGT event for an Investor for the purposes of Division 104 of theIncome Tax Assessment Act 1997
    (ITAA 1997)"

    Therefore, to avoid a such CGT event incurred again at this financial year end, can I do the following steps?

    - Switch into a fund which is expected to has less and no CG distributions on 29 June 2016 to avoid CG event. This will not trigger CGT based on Product Ruling 2012/7.
    - Switch back into Perpetual Geared Australian after 30 June 2016

    Can you let me know if the strategy above works and if there are anything causing CGT events at the end of financial year?

    Thank you very much for your advice.