Betashares DGGF ETF Reveals Complex FY2025 Distribution Breakdown

Overview of Distribution Components

Betashares Capital Ltd has disclosed the estimated annual distribution breakdown for its Ethical Diversified Growth ETF (ASX, DGGF) covering the financial year ending 30 June 2025. The detailed statement provides investors with a granular view of the income types, capital gains, tax offsets, and non-assessable amounts that comprise the fund's distribution.

The total estimated attributed distribution stands at approximately 169.2% relative to the cash paid, reflecting the complex interplay between cash distributions and tax components under the Attribution Managed Investment Trust (AMIT) regime. Notably, the estimated cash distribution is 100%, indicating that investors will receive full cash payments corresponding to the declared distributions.

Income and Capital Gains Breakdown

The distribution includes a diverse mix of Australian income sources, such as interest (both subject and not subject to non-resident withholding tax), franked and unfranked dividends, and other income streams. Foreign sourced income accounts for over 10.5% of the distribution, complemented by franking credits and foreign income tax offsets, which provide potential tax benefits to investors.

Capital gains form a significant portion of the distribution, with 60.75% attributed to discounted capital gains on non-taxable Australian property. This classification implies that these gains are not subject to tax at the investor level, enhancing the tax efficiency of the fund. Smaller amounts are allocated to taxable capital gains, but many categories, including indexation and other methods, report zero, indicating a focused capital gains strategy.

Tax Adjustments and Non-Cash Components

A notable feature of the distribution is the substantial AMIT cost base increase adjustment of -61.38%, which affects the cost base of investors' units in the fund. This adjustment is important for tax reporting and future capital gains calculations. Additionally, non-cash components such as franking credits and foreign income tax offsets are accounted for, with negative values reflecting their impact on the cost base rather than direct cash flow.

The fund's status as an AMIT means that the cash distributed to investors may differ from the taxable income attributed, a nuance that investors should consider when preparing their tax returns. Betashares provides further resources and guidance on the AMIT tax regime to assist investors in understanding these complexities.

Implications for Investors

For investors in the Betashares Ethical Diversified Growth ETF, this detailed distribution breakdown offers transparency on the nature of income and tax attributes embedded in their returns. The mix of franked dividends, foreign income, and capital gains, combined with the AMIT adjustments, underscores the importance of professional tax advice to fully comprehend the implications.

While the estimated distribution components provide a useful guide, investors should await the final Attribution Managed Investment Trust Member Annual (AMMA) statement for definitive tax reporting. Comparing these estimates with prior years may also yield insights into the fund's evolving income profile and tax efficiency strategies.