Betashares HETH ETF Reveals 100% Cash Distribution with Major AMIT Cost Base Adjustment

Overview of Distribution Components

Betashares Capital Ltd has released its estimated annual distribution component breakdown for the Betashares Global Sustainability Leaders Currency Hedged ETF (ASX – HETH) covering the period from 1 July 2024 to 30 June 2025. The announcement provides investors with a detailed look at the tax and income composition underpinning the fund's distributions for the upcoming financial year.

Key Highlights – Cash Distribution and Capital Gains

Notably, the fund is projecting a 100% cash distribution, meaning investors can expect the entirety of their distribution in cash form. However, the breakdown reveals that this cash payout is largely supported by non-cash components, specifically capital gains classified as non-taxable Australian property gains. These gains constitute approximately 155.7% of the distribution, indicating that the fund has realised significant capital appreciation within its portfolio.

AMIT Cost Base Adjustments and Tax Implications

Another standout feature of the distribution is the substantial negative adjustment to the Attribution Managed Investment Trust (AMIT) cost base, recorded at -211.5%. This adjustment reflects the tax treatment under the AMIT regime, where the cost base of units held by investors is reduced to align with the fund’s attributed taxable income and distributions. While this does not affect the immediate cash received, it has implications for investors’ future capital gains calculations when they dispose of their units.

Absence of Income and Tax Offsets

The estimated distribution components report no income from interest, dividends, or other income sources, nor any franking credits or foreign income tax offsets. This suggests that the fund’s returns for the year are driven predominantly by capital gains rather than income-generating assets. Investors should note that the final tax components will be detailed in the AMMA statement, which will provide definitive guidance for tax reporting purposes.

Investor Considerations and Next Steps

For investors, understanding the composition of distributions is critical for tax planning and portfolio management. The significant capital gains and AMIT cost base adjustments underline the importance of consulting with tax professionals to accurately assess the impact on individual tax positions. Betashares has also made available a Fund Payment Notice and additional resources on its website to assist investors in navigating the AMIT tax regime.