03 February 2019
Funds affected by this notice:
|Maple-Brown Abbott Australian Share Fund||087 294 504|
|Maple-Brown Abbott Sharemarket Fund||088 536 832|
Modification to constitution
The AMIT regime was enacted by the Australian Government to implement new rules for the taxation of certain managed investment schemes.
Maple-Brown Abbott Ltd ACN 001 208 564 (MBA) has made modifications to the constitutions of the above registered schemes (Funds) (Modifications) to enable the Funds to operate each class of units as a separate AMIT under the AMIT Regime.
ASIC Corporations (Attribution Managed Investment Trusts) Instrument 2016/489 permits MBA to make the necessary amendments without member approval, subject to the satisfaction of certain conditions. This notice is being given in satisfaction of one of those conditions.
A copy of the Modifications is available free of charge by emailing email@example.com
Reasons for Modifications
Each Fund has made an election to become an AMIT and MBA has made the Modifications to facilitate each Fund operating each class of units as a separate AMIT under the AMIT Regime.
Although MBA has not yet made a decision whether to elect for each class of units in a Fund to be an AMIT, should MBA make such an election, that Fund will be able to attribute the net taxable income that is relevant and applicable to each different class of units to the members of that class as if that class was a separate trust. This means that the taxable income relevant to a class is attributed to the members in that class, without being impacted by any other class. Therefore, an election to use this element of the AMIT Regime would mean that:
- income applicable to a particular class in which a member has an interest can be attributed to the members of that particular class; and
- losses applicable to a particular class in which a member has an interest can be quarantined in that class and applied against future income derived in the particular class (as opposed to being applied against the Fund’s income on a whole of fund basis, which may lead to the tax effect of those losses benefiting members with interests in other classes).
Effect of Modifications
The Modifications amend the constitutions of the Funds so as to:
- clarify how the issue price and redemption price are to be calculated where there are multiple classes of units in issue; and
- insert other provisions considered by MBA as being necessary or incidental to each Fund being able to operate each class of units as a separate AMIT.