Hmmm. Still trying to determine as to whether or not this applies;
http://www.ato.gov.au/individuals/content.asp?doc=/content/00096850.htm&page=44&H44
Judd, I actually have a question here with regards to STW!
Do you know if their distributions count as income tax as per normal dividends, or do they count towards CGT (ie able to be offset against capital losses), as they're basically Fund Distributions?
Just not sure on the stance here, with regards to any EFT I guess.
Distributions count as Capital Gains
You are sure of this STC?
If so, thank you very much.
Regards and now off to sell groceries to the masses. I wont say how much per hour I get for doing that as it is embarrassing.
Don't be embarrassed, Judd. You're working doing something necessary for our society to function. Much better than sucking from the public purse.
Goodonya.
In truth, I don't know why funds like this aren't more popular? Especially with armatures.
Ah, but Julia I did suck from the public purse. I was a public servant for 30 years before I took a redundancy (well, in technical sense my 5 year contract was determined) in April 2007. All for the better I think.
I think the are. It seems if you go along to the annual general meetings or the information sessions about 400 to 700 people turn up. However, if I went - at age 49 - it would bring the average age of the attendees down by some years. Lot of older people there who have seen a number of fluctuations in the sharemarket and know the value of dividends. Tell you honestly, I know one lady who is just on 80 years of age. Her income from dividends (and this will scare the bejesus out of younger players in the market) is $1M per year. And no, I am not after her so get your dirty minds out of the gutter. I just hope she lives to 120 and spends all her money.
Judd, question on AFI. Do they simply deduct fees automatically from the dividends, the same as STW?
AFI is a managed fund, isn't it? I must say, I am quite impressed with the low fees there. Doesn't seem to follow the ASX200, but rather 20-30 stocks?
& Finally; AFI pay dividends, don't they? As in, not distributions?
& Mate, selling groceries sounds like a lovely stress free job (correct me though here!), I'd love to be doing something like that.
OK, first I am not an expert, a tax specialist or any other form of person who can provide financial advice. Let me make that very clear and I would also say that, after blowing up a margin account last year and costing my family heaps, I am the last person on the face of this earth you would ask "And what do you think about the share market?"
AFI and others like it are managed funds in my view. But not as usually a managed fund is perceived. They are actually established companies listed on the ASX in just the same way as BHP. They are required to abide by ASX listing rules and various legislation which are applicable to companies.
The difference is they they invest in other companies which are also listed on the ASX.
Directors are paid fees, they pay brokerage and all that sort of crap. This is expensed in the profit and loss account. That pay corporate tax. All the same as, say IAG, RIO, CAB, you name it.
They rarely sell. In fact it is estimated that AFI has some $1billion in unrealised capital gains on its books. They just buy and sit. And sit. And sit.
When they sell, it is sometimes a bit more than "adjusting" the books. In 2007 AFI had Centro as part of its portfolio valued at $27M. Had it for over 5 or more years. Had not added any shares in that time. By December 2007 it had got rid of the lot for $18.7M. Seems obvious to me they knew what may be bad was going rotten and they dumpt the lot as fast as they could. And before it went off a cliff. Same with TPI and Alinta (means to me they did noyt like the B&B takeover)
Sorry for the long-winded stuff.
As for dividends, yes they pay those the same as any other company (not EFTs) listed on the ASX.
Finally, selling groceries is not too bad. I just do it and go home. The real bitch is trying to console very young girls who have received a foul diatribe from people who should know better. I help women unload and pack groceries when they are pushing a pram around while carrying a young one. It is the decent thing to do.
BUT BUT, elderly foul mouthed cretins who abuse the young lasses and lads who work with me.............I just wish to kick their walking frames out from underneath them. They are trash.
So, am I to take it that yes - fees are automatically taken out of dividends? Not that you ever need to send them a cheque?:
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