We often get a number of questions about unit pricing and distributions around the end of the financial year. Here are the most frequently asked questions:

Are all Funds distributing at the end of the financial year?

Yes, we expect that our managed funds will be making a distribution for the financial year ending 30 June 2019.

When can I expect to receive my distribution?

Investors who have nominated to have their distribution paid to a bank account can expect payment on or around Monday 15 July 2019.

Investors who have chosen to reinvest their distributions will have additional units applied to their account on 1 July 2019. Please note that the processing times will mean there will be a delay before you see these additional units in your account.  

When can I expect to receive my end-of-year statement?

End-of-year statements will be sent to you in mid-July 2019. This statement pack will consist of a distribution statement and tax statement together with a periodic statement that details all transactions on your investment over the last year.

Can I change my nominated bank account now for the distribution payment?

We require five business days’ written notice prior to 28 June 2019 to change a nominated bank account for the distribution payment. Please download and complete the ‘Change of details’ form to change your bank account details.

Why does a Fund’s unit price fall after a distribution?

A Fund’s unit price reflects the value of the Fund’s investments together with any income accrued but not yet distributed to investors. After a distribution is paid to investors, the value of the Fund falls by the amount of income that’s distributed to investors. This means that whilst it may appear your investment is worth less on the day after the distribution, you actually have received the difference as income so the net impact for the investor is nil. This is shown in the chart.


Source: Allan Gray. For illustrative purposes we have assumed the unit price increases at a constant rate. This is unrealistic, as investment performance doesn’t follow a straight line. We have also ignored any tax implications for simplicity.

Why does the price on the website for the Allan Gray Australia Balanced Fund not update after 30 June 2019?

We anticipate that there may be delays of up to ten business days after 30 June 2019 in calculating unit prices and processing transactions for the Allan Gray Australia Balanced Fund. This is due to a change in the tax status of the Fund, which requires us to follow a different calculation process at the end of the financial year. Other Allan Gray Australia funds are not affected.

Can I still transact in the Allan Gray Australia Balanced Fund if the distribution has not been finalised?

We will continue to accept applications and withdrawals during the distribution calculation period. Once the unit price has been determined, your transaction will be calculated using the relevant day’s unit price. This will mean, however, that the processing of these transactions will be delayed until the distribution has been finalised.

We expect that distribution processing will be finalised by Friday 12 July 2019 with a return to business as usual by Monday 15 July 2019.

Why has the tax status of Allan Gray Australia Balanced Fund changed?

The concessional start-up period for the Allan Gray Australia Balanced Fund ceased on 30 June 2018. As 20 or fewer persons hold 75% or more of the units in the Fund, the Fund is considered a closely held fund for tax purposes. One of the consequences of this is that capital gains realised in the sale of equity securities will be reported as income in the Annual Tax Statement.

What should I do if I have any further questions?

Our Client Services team can answer any general questions relating to our products and can be contacted on 1300 604 604 or at clientservices@allangray.com.au. For details on how earnings on your investments may affect your personal tax position, we recommend you talk to a tax specialist or accountant.