Cromwell Phoenix Global Opportunities Fund

Introduction

The Fund’s year end for tax purposes is 30 June.  The total annual distribution and tax components are advised in the Attribution Managed Investment Trust Annual (“AMMA”) Statement sent to unitholders each year.

Attribution Managed Investment Trust Regime

The Fund qualifies as a Managed Investment Trust (“MIT”) and satisfied the requirements to make a choice to be an Attribution Managed Investment Trust (“AMIT”) for taxation purposes. The Fund has made a choice to be an AMIT for taxation purposes. The AMIT regime provides greater certainty on the application of the tax provisions for both the investors and the Fund.

Under the AMIT regime, the Fund is a flow through entity and investors will be attributed the net (tax) income of the Fund regardless of whether the Fund makes a distribution of income or capital.

The Fund will attribute net (tax) income and tax offsets to investors on a fair and reasonable basis. The attribution will generally be based on the investors’ rights to the income and capital in the Fund as provided for in its constitution.

Investors will be attributed tax components that may include interest, dividends, foreign income, foreign income tax offsets, franking credits, capital gains and income from property. CFM will provide investors with an AMIT Member Annual Statement (“AMMA Statement”). Your AMMA Statement provides the components of the distribution that have been attributed to you each financial year.

The components of interest, dividends, foreign income, foreign income tax offsets, franking credits, income from property and capital gains retain their character in the investor’s hands. Australian resident taxpayers include in their assessable income their attributed amount of determined trust components (including any net capital gains of the Fund). These attributed amounts are included in a resident taxpayer’s assessable income for tax purposes irrespective of when the cash in respect of the attributed amounts is received.

For more information regarding the AMIT regime please visit the Australian Taxation Office’s website at www.ato.gov.au.

Capital Gains Tax

When you invest in the Fund you acquire units which are assets for capital gains tax purposes.

Unitholders should refer to the ATO’s document titled “Personal Investors Guide to Capital Gains Tax” to determine their capital gains tax obligations.  In particular unitholders should be careful to adjust their tax cost base of their units for tax deferred and/or AMIT cost base net amount excess/shortfall adjustments as outlined in their Annual Tax Statement or AMMA Statement provided each year.

This is general information, not tax advice

The above tax information has been prepared for general information purposes only and should not be relied upon as tax advice. This information should be read in conjunction with the ATO’s publications. This investment can give rise to complex tax issues and as each unitholder’s particular circumstances are different we recommend that you consult your professional tax adviser for specific advice. While every effort is made to provide accurate and complete information, Cromwell Funds Management Limited (“CFM”) does not warrant or represent that this information is free of errors or omissions or is suitable for your intended use and personal circumstances. Subject to any terms implied by law which cannot be excluded, CFM accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation.