iShares Yield Plus ETF to Pay 70.57 Cents Per Unit in Latest Distribution
BlackRock Investment Management (Australia) Limited has announced the estimated distribution components for its iShares Yield Plus ETF for the period ending 30 June 2025, revealing a total cash distribution of 70.57 cents per unit.
- Total estimated cash distribution of 70.567211 cents per unit
- Distribution primarily composed of Australian and foreign sourced income
- No franking credits or foreign withholding tax gross-ups included
- Final tax components to be detailed in AMIT member annual statements
- Important tax implications for non-resident unitholders highlighted
Distribution Announcement Overview
BlackRock Investment Management (Australia) Limited (BIMAL) has released its estimated distribution breakdown for the iShares Yield Plus ETF (ASX, IYLD) for the distribution period ending 30 June 2025. The fund is set to pay a total cash distribution of approximately 70.57 cents per unit, payable on 11 July 2025 to unitholders recorded as of 2 July 2025.
Composition of the Distribution
The breakdown reveals that the distribution is largely derived from Australian sourced income and foreign sourced income, with the largest components being unfranked dividends (38.07%) and foreign income (45.48%). Interestingly, the announcement notes zero franking credits and foreign withholding tax gross-ups, indicating that the distribution is predominantly from income streams not subject to these tax offsets.
This composition is significant for investors assessing the tax implications of their income, especially given the fund’s status as an Attribution Managed Investment Trust (AMIT) under Australian tax law. The detailed breakdown assists intermediaries and non-resident investors in understanding potential withholding tax obligations.
Tax and Regulatory Considerations
BIMAL emphasizes that these figures are estimates and that final tax components will be disclosed in the AMIT member annual statement (AMMA statement) following the financial year-end. The announcement also provides guidance on the treatment of distributions for non-resident unitholders, highlighting the concept of “Fund Payment Amount” which relates to Australian sourced income subject to withholding tax.
Investors are reminded that the distribution components should not be used as tax advice and that individual circumstances may affect tax outcomes. BlackRock advises investors to seek independent professional taxation advice to understand the implications fully.
Implications for Investors
For Australian resident investors, the absence of franking credits means the distribution will be fully taxable income without the benefit of tax offsets. For foreign investors, the detailed breakdown aids in compliance with withholding tax obligations. The announcement also underscores the importance of reviewing the AMMA statement for accurate tax reporting.
Overall, the distribution reflects the fund’s income-generating profile and provides transparency on the sources of returns, which is crucial for investors balancing income needs with tax efficiency.
Bottom Line?
Investors should watch for the final AMMA statement to confirm tax components and adjust their tax planning accordingly.
Questions in the middle?
- How will the absence of franking credits affect Australian resident investors’ after-tax returns?
- What impact might the distribution composition have on foreign investor withholding tax liabilities?
- Will the final AMMA statement reveal significant deviations from these estimated distribution components?
