BlackRock Investment Management has announced an estimated distribution of 176.55 cents per unit for its iShares MSCI South Korea ETF for the period ending June 30, 2025, predominantly sourced from foreign income.
- Estimated total cash distribution of 176.55 cents per unit
- Distribution period ending 30 June 2025 with payment on 11 July 2025
- Over 99.99% of distribution derived from foreign sourced income
- Detailed tax component breakdown provided for withholding tax compliance
- Final tax details to be confirmed in annual AMIT member statements
Distribution Announcement Overview
BlackRock Investment Management (Australia) Limited has released its estimated distribution components for the iShares MSCI South Korea ETF (ASX, IKO) for the period ending 30 June 2025. Investors can expect a cash distribution of approximately 176.55 cents per unit, payable on 11 July 2025. This announcement provides a detailed breakdown of the distribution's tax components, essential for both resident and non-resident unitholders.
Foreign Income Dominates Distribution
The vast majority of the distribution, 99.9975%, is sourced from foreign income, reflecting the ETF's exposure to South Korean equities and related income streams. Australian sourced income and other domestic components are negligible in this period. This foreign income dominance highlights the fund's international investment focus and has important implications for tax treatment, especially for non-resident investors subject to withholding tax.
Tax and Withholding Considerations
BlackRock has provided these estimates primarily to assist intermediaries and investors in managing withholding tax obligations under Australian tax law. The fund operates as an Attribution Managed Investment Trust (AMIT), which means unitholders receive detailed tax components annually via AMIT member annual statements (AMMA statements). These statements will provide the final tax breakdowns, which may differ from the current estimates.
Non-resident investors should note the concept of 'Fund Payment Amount,' which relates to Australian sourced income and capital gains subject to withholding tax. The announcement also clarifies that franking credits, which can provide tax offsets for Australian investors, are not a component of this distribution period.
Investor Guidance and Disclaimers
BlackRock emphasizes that this announcement is for informational purposes only and not a financial product recommendation. Investors are advised to seek independent tax advice tailored to their individual circumstances. The company also reminds investors that investment returns are subject to market risks and that past distributions do not guarantee future performance.
Overall, this distribution announcement underscores the fund's strong foreign income profile and the complexities of tax compliance for international investors. It sets the stage for the upcoming release of detailed tax statements that will provide clarity on the final distribution components.
Bottom Line?
As foreign income continues to dominate, investors should watch for final tax details in the forthcoming AMIT statements to fully understand their tax obligations.
Questions in the middle?
- How might fluctuations in South Korean markets impact future distributions for IKO?
- What are the potential withholding tax implications for non-resident investors given the foreign income concentration?
- Will the final AMIT member statements reveal significant differences from these distribution estimates?