iShares MSCI Emerging Markets ETF Declares 73.32 Cents Per Unit for June 2025
BlackRock Investment Management announces an estimated 73.32 cents per unit distribution for its iShares MSCI Emerging Markets ETF for the period ending June 30, 2025, highlighting a strong foreign income component.
- Estimated cash distribution of 73.32 cents per unit for June 2025 period
- Majority of distribution (75.6%) derived from foreign sourced income
- Non-assessable income accounts for 12.19% of distribution
- No franking credits or Australian sourced interest/dividends included
- Detailed tax breakdown provided for non-resident unitholders’ withholding obligations
Distribution Announcement Overview
BlackRock Investment Management (Australia) Limited has released its estimated distribution components for the iShares MSCI Emerging Markets ETF (ASX, IEM) for the period ending 30 June 2025. The fund is set to pay a cash distribution of approximately 73.32 cents per unit, with payment scheduled for 11 July 2025. This announcement provides investors with a detailed breakdown of income sources and tax components, crucial for understanding the nature of returns and associated tax implications.
Income Composition and Tax Implications
The distribution is predominantly composed of foreign sourced income, which accounts for 75.6% of the total payout. This reflects the fund’s exposure to emerging markets outside Australia, aligning with its investment mandate. Additionally, non-assessable income makes up 12.19% of the distribution, indicating portions of the payout that are not subject to Australian tax. Notably, there are no franked dividends or Australian sourced interest included in this distribution, which means investors will not receive franking credits this period.
For non-resident unitholders, the announcement highlights important withholding tax considerations. The detailed breakdown assists intermediaries and investors in determining their withholding tax obligations under Australian tax law. BlackRock emphasizes that these figures are estimates and advises investors to seek professional tax advice tailored to their individual circumstances.
Context Within the AMIT Regime
The fund operates as an Attribution Managed Investment Trust (AMIT), a structure designed to provide transparency and tax efficiency for investors. Under this regime, the distribution components may differ from the actual cash paid, reflecting the attribution of income for tax purposes. Investors will receive a member annual statement (AMMA statement) after the financial year-end, which will provide the final tax components for their records and tax returns.
Investor Takeaways
This distribution announcement underscores the fund’s continued focus on emerging market assets and the complexities of tax treatment for Australian and foreign investors alike. The absence of franking credits and the dominance of foreign income highlight the fund’s international exposure and the importance of understanding cross-border tax implications. Investors should prepare for the forthcoming AMMA statements to reconcile estimated and actual tax components.
Bottom Line?
As the final tax statements approach, investors should brace for potential adjustments and review withholding tax impacts closely.
Questions in the middle?
- How will the final AMMA statement compare to these estimated distribution components?
- What impact might the predominance of foreign income have on non-resident investor withholding tax liabilities?
- Could the absence of franked dividends affect Australian investors’ after-tax returns this period?
