iShares High Growth ESG ETF Projects 69.13c Per Unit Distribution for FY2025

Distribution Overview

BlackRock Investment Management (Australia) Limited has released its estimated distribution details for the iShares High Growth ESG ETF (IGRO) for the period ending 30 June 2025. Investors can expect a total estimated cash distribution of 69.1289 cents per unit, payable on 11 July 2025. This announcement provides a granular breakdown of income sources, including Australian and foreign income, capital gains, and non-assessable amounts, offering transparency into the fund’s income composition.

Income Components and Tax Implications

The distribution is composed of various income streams – Australian sourced income such as franked and unfranked dividends, interest, and other income; foreign sourced income; and capital gains categorized under different tax treatments. Notably, the fund reports a significant portion of non-assessable income and return of capital, which together account for nearly 40% of the distribution. Franking credits are also included, providing Australian resident investors with potential tax offsets.

For non-resident unitholders, the announcement highlights withholding tax obligations, particularly concerning Australian sourced income and capital gains subject to withholding under the Tax Administration Act 1953. The fund’s status as an Attribution Managed Investment Trust (AMIT) means that final tax components will be detailed in the AMIT member annual statement (AMMA statement) issued after the financial year-end, which investors should review carefully for accurate tax reporting.

Investor Guidance and Regulatory Context

BlackRock emphasizes that these distribution figures are estimates and should be used primarily to assist intermediaries and investors in managing withholding tax responsibilities. The company advises investors to seek independent tax advice tailored to their individual circumstances, as the impact of franking credits and other tax components can vary widely.

This announcement also serves as a reminder of the complexities involved in ETF distributions, especially for funds with diverse income sources and international exposure. The detailed disclosure aligns with regulatory requirements and BlackRock’s commitment to transparency, helping investors understand the nature of their returns beyond the headline distribution figure.

Looking Ahead

As the financial year closes, investors will await the final AMMA statements to confirm the exact tax components of their distributions. This information will be crucial for accurate tax filings and for assessing the net benefit of the fund’s income streams. Meanwhile, the estimated distribution provides a useful benchmark for income expectations from this ESG-focused growth fund.