No, only about $40 consisted of dividends. The rest of the distribution was made up of both discounted and non-discounted capital gains (it's an international fund - very little dividends). It doesn't matter if I haven't made a capital gain myself. The managed fund (unit trust) is obliged to distribute net income, including Capital Gains, to the unit holders by June 30. In this case, based on my unit holding, I was liable to the ~$1,000 in capital gains, despite my original investment going nowhere. This is the point I was trying to make... you are paying CGT despite not having personally made a capital gain. It is the downside of managed funds... being liable (tax wise) for the actions of the fund as a whole - and other members.
In relation to your second question.. to the second poster. He is referring to funds that haven't adopted AMIT. In these cases they don't attribute taxes in such a fashion. That's why he said you should always look for funds that have adopted the new accounting principles, otherwise you are disadvantaged by the redemptions of other holders. I know it sounds ridiculous... but I guess that's the whole point of AMIT.
