CD Private Equity Fund II has announced a special unfranked dividend of AUD 0.09 per ordinary unit, payable on February 24, 2025, signaling steady returns for investors.
- Special dividend of AUD 0.09 per ordinary unit
- Ex-dividend date set for January 29, 2025
- Payment scheduled for February 24, 2025
- Dividend is unfranked with no tax component disclosed
- No external approvals required for distribution
Special Dividend Announcement
CD Private Equity Fund II (ASX: CD2) has declared a special dividend of AUD 0.09 per fully paid ordinary unit. This distribution, announced on January 23, 2025, is notable for being unfranked and not tied to any specific financial period, highlighting the fund’s flexibility in returning capital to investors.
Key Dates and Payment Details
The ex-dividend date is set for January 29, 2025, with the record date following on January 30. Investors holding units before the ex-date will be eligible for the dividend payment scheduled for February 24, 2025. The absence of any requirement for security holder, court, or regulatory approvals streamlines the distribution process, reflecting the fund’s straightforward governance on this matter.
Implications of an Unfranked Dividend
The dividend is entirely unfranked, meaning it carries no franking credits. For investors, this could influence the after-tax return depending on their individual tax circumstances. The fund has not disclosed any tax components beyond this, suggesting a clean payout without foreign income considerations.
Context Within the Private Equity Sector
Special dividends like this often signal strong underlying cash flow or asset realisations within private equity funds. CD Private Equity Fund II’s decision to distribute a special dividend may reflect successful portfolio exits or capital management strategies aimed at enhancing investor value. It also serves as a positive indicator of the fund’s liquidity position and confidence in ongoing operations.
Looking Ahead
While this distribution is a one-off special dividend, it sets a precedent for how the fund might manage excess capital in the future. Investors will be watching closely for subsequent announcements and the fund’s broader strategy on distributions and reinvestment.
Bottom Line?
CD Private Equity Fund II’s special dividend underscores its commitment to delivering tangible returns, but the unfranked nature invites scrutiny on tax impacts.
Questions in the middle?
- What drove the decision to declare a special dividend at this time?
- How might the unfranked dividend affect different investor tax profiles?
- Will CD Private Equity Fund II continue to issue special dividends or shift towards regular distributions?