Investors Face Unit Redemption Freeze Ahead of BlackRock’s February Distributions

BlackRock Announces Estimated Distributions

BlackRock Investment Management (Australia) Limited (BIMAL), the responsible entity for several Australian domiciled iShares exchange traded funds (ETFs), has released its estimated distribution figures for February 2025. The announcement covers three key funds: the iShares Core Cash ETF (BILL), the iShares Enhanced Cash ETF (ISEC), and the iShares Yield Plus ETF (IYLD).

The estimated cash distributions per unit are 37.760388 cents for BILL, 38.577217 cents for ISEC, and 39.989761 cents for IYLD. These figures provide investors with an early indication of the income they can expect from these ETFs, which focus on cash and yield strategies within the Australian market.

Distribution Timetable and Investor Actions

Key dates for investors to note include the ex-distribution date on 7 February 2025, with the record date and confirmed distribution announcement expected on 10 February. Payment of the distributions is scheduled for 19 February 2025. Importantly, unit redemption orders will be suspended on 6 February but will reopen on the ex-date, while ASX secondary market trading will continue uninterrupted throughout this period.

Investors wishing to participate in the Distribution Reinvestment Plan (DRP) must opt in by 5pm on 6 February 2025. The DRP allows distributions to be reinvested back into the respective ETFs, potentially compounding returns over time. Details and rules for the DRP are available on BlackRock’s website and through their client service channels.

Sustainability and Communication Preferences

In line with BlackRock’s sustainability strategy, the company encourages investors to opt for electronic communications to reduce paper consumption. Statements and distribution notifications will be emailed by default unless investors specifically request postal delivery. This approach reflects BlackRock’s commitment to environmental responsibility while maintaining high service standards.

Investors are reminded to ensure their bank account details are up to date with the share registrar to facilitate prompt receipt of distribution payments. Those who have not updated their details can do so via the Computershare Investor Centre.

Looking Ahead

While these distributions are estimated and subject to confirmation, they provide a useful benchmark for income-focused investors considering exposure to Australian cash and yield ETFs. BlackRock’s transparent timetable and reinvestment options offer flexibility and clarity, supporting informed investment decisions in a competitive market environment.