BT Elect Portfolio - Tax efficiencies

Better management of your tax situation is achieved through the following:

Ability to choose tax accounting methods

BT Private Portfolio offers you a choice of tax accounting methods. These are:

Maximise capital losses or if no capital losses are available minimise capital gains
First In First Out method
Maximise capital gains or if no capital gains available minimise your capital losses.

Portfolio structuring

BT Elect Portfolio managers will consider tax efficiency in the management of the model portfolios. They will also endeavour to structure the portfolio and transact in a tax efficient manner while maximising performance in line with the objectives and risk/return profiles of the models. This may provide you with improved after tax returns.

Individual cost base

A significant tax advantage of the BT Elect Portfolio is that you have your own individual cost base for the securities held in your portfolio for tax purposes. This is different to managed funds where you share ownership of the underlying shares with all the other investors in the fund.

As you maintain beneficial ownership of the shares in your portfolio, BT Elect Portfolio provides you with an individual cost base for tax purposes. This allows you to receive all dividends, franking credits, capital gains/losses, attributable to your securities, rather than sharing them with other investors.

Another advantage of an individual cost base when investing in BT Elect Portfolio is the absence of embedded capital gains in the portfolio. In contrast to traditional managed fund offerings, BT Elect Portfolio investors are not be subject to tax on capital gains generated before the day they invested in their own portfolio assets.