Issue

Fourteen of the iShares exchange-traded funds (iShares ETFs) are offered to Australian investors by converting the current structure of CHESS depositary interests (CDIs) into units of a new Australian domiciled iShares ETF (Units) on a 1 for 1 basis (1 CDI for 1 unit).

The change will make investing in the iShares ETFs simpler by removing the need to file U.S. taxes (W-8BEN forms). This makes it a more accessible investment structure for Australian investors. 

The changes relate to the following International iShares ETFs. 

The ATO has published Class Ruling CR 2018/45 which confirms the availability of CGT rollover relief for CDI holder.  This means the capital gain the investor has made upon the disposal of a CDI to the Trustee of the relevant New Trust can be disregarded. 

Resolution

There are two options available:

Option 1: Replace the description of the existing account

Option 2: Create a new investment account

Replace the description of the existing account

Navigate to Fund Level > Investments > Browse Holding Account

1. Click on the investment
2. From the investment detail page, click on Edit button
3. Copy the "Issue Description" to "Description"
4. Click on Save

 Create a new Investment Account

If you want to keep the original security issue description of iShare investment for historical reporting comparison purposes. 

Navigate to Fund Level > Investments > Investment Account

1. Create a new investment account for the relevant iShare ETFs Security Issue code, e.g. IVV
2. Choose a different holding account code e.g. IVV_1

Navigate to Fund Level > Transactions > Investment - Corporate Action > Code Change

or

Navigate to Fund Level > Transactions > Investment - Corporate Action > Takeover or Merger

1. Process a Code Change event or a Takeover or Merger event (with rollover relief) to transfer the cost base and units to this new investment account.

The new holding account will have a new issue description.