CitiFirst YMAX Self-Funding Instalment MINI Announces AUD 0.03510801 Partially Franked Distribution

Distribution Details and Partial Franking for YM1SO1 and YM1SO3

Citigroup Global Markets Australia Pty Limited, as issuer of the CitiFirst Self-Funding Instalment MINI products, has officially declared a distribution of AUD 0.03510801 per unit for the YMAX CitiFirst Self-Funding Instalment MINI, applicable to ASX warrants YM1SO1 and YM1SO3. The distribution carries a partial franking status, although the exact franking percentage was not specified in the announcement.

Partial franking indicates that some corporate tax paid is passed to eligible holders via franking credits, potentially lowering the tax Liability for certain Australian resident investors. However, as this is a Self-Funding Instalment MINI, the distribution is not paid as cash to holders. Instead, per the product mechanics, the distribution amount reduces the outstanding loan balance linked to the instalment. Investors seeking details on the exact franking Credit rate should consult the full product disclosure statement or contact Citigroup directly.

Alignment of Ex-Distribution and Record Dates with YMAX BetaShares

The YMAX CitiFirst Self-Funding Instalment MINI began trading ex-distribution on 1 July 2026, with the record date for entitlement set at 2 July 2026. Citigroup confirmed that these dates align exactly with those of the YMAX BetaShares Australian Top 20 Equity Yield Maximiser Fund, the underlying reference asset for these warrants.

This synchronization is intentional. Self-Funding Instalment MINIs are structured to reflect distributions from the underlying fund, with timing at the warrant level matching the managed fund’s distribution schedule. Consequently, holders as of 2 July 2026 will see their loan amounts reduced by the distribution, capturing the economic benefit within the instalment structure rather than receiving separate cash payments.

Loan Balance Adjustment for YM1SO1 Post-Distribution

Following the distribution, the outstanding loan amount for YM1SO1 holders decreased from $4.3268 to $4.2927, reflecting the AUD 0.03510801 distribution applied to reduce the loan. This approximately $0.0341 per unit reduction demonstrates the Self-Funding Instalment mechanism where underlying asset distributions automatically pay down the embedded loan.

This loan reduction increases the equity component of the instalment, effectively raising the holder’s ownership stake in the underlying asset without additional cash contributions, assuming continued distributions. The company did not provide any forward guidance on future distribution amounts or timing.

Loan Balance Adjustment for YM1SO3 Post-Distribution

For YM1SO3 holders, the outstanding loan balance was reduced from $3.4193 to $3.3850 after applying the same AUD 0.03510801 distribution. The differing loan levels between YM1SO1 and YM1SO3 reflect issuance at different times or under varying terms, resulting in distinct loan balances at distribution.

Both warrant series receive the same gross distribution per unit, referencing the same underlying YMAX BetaShares Australian Top 20 Equity Yield Maximiser Fund. The loan reduction for YM1SO3 holders similarly increases net equity exposure over time. Investors should review their instalment statements to verify updated loan balances and implications.

Self-Funding Instalment MINI Structure and PDS Section 1.1 Provisions

Citigroup’s update references section 1.1 of the product disclosure statement (PDS), which governs how distributions reduce outstanding loan amounts. This is a hallmark of Self-Funding Instalment products: income from the underlying asset is not paid as cash but is applied to service and lower the Leveraged Loan component.

This design suits investors seeking leveraged exposure to income-generating Assets without ongoing cash payments to maintain leverage. As distributions accumulate and reduce the loan, gearing declines. The PDS outlines that this distribution-to-loan-reduction mechanism is mandatory. Prospective and current holders should review the full PDS for details of their rights and responsibilities.

YMAX BetaShares Australian Top 20 Equity Yield Maximiser Fund as Underlying Asset

The underlying reference for YM1SO1 and YM1SO3 is the YMAX BetaShares Australian Top 20 Equity Yield Maximiser Fund, an exchange-traded managed fund exposing investors to the twenty largest ASX-listed companies by Market Capitalisation. The fund employs a covered call options overlay strategy to enhance income yield and is managed by BetaShares. It is known for relatively high distribution yields compared to standard equity index products.

The covered call strategy generates additional income by selling call options on the portfolio, boosting distributions but potentially capping Capital gains in strong markets. Since the CitiFirst Self-Funding Instalment MINI references YMAX distributions directly, the loan balance reductions depend on BetaShares’ declared distributions. Citigroup does not control distribution timing or amounts but passes them through per the instalment PDS.

Paul Kedwell’s Role at Citigroup

The announcement was signed by Paul Kedwell, Warrants and Structured Products Manager at Citigroup Global Markets Australia. He oversees the full range of Citigroup’s listed structured products in Australia, including Self-Funding Instalments, trading warrants, turbos, MINIs, and instalments. His team manages lifecycle events such as distribution declarations, loan resets, and expiry notices for these ASX products.

Citigroup Global Markets Australia Pty Limited holds an Australian Financial Services Licence (AFSL 240992) and participates in both ASX Group and Cboe Australia. The firm acts as issuer and market maker for a broad array of exchange-traded structured products accessible to retail and wholesale investors in Australia. This distribution announcement is a routine event in the lifecycle of the YMAX CitiFirst Self-Funding Instalment MINI series.

Guidance for YM1SO1 and YM1SO3 Investors

Investors holding YM1SO1 or YM1SO3 should note that future instalment distributions depend on YMAX BetaShares Australian Top 20 Equity Yield Maximiser Fund’s declared distributions. Given YMAX’s regular distribution schedule, holders can expect further loan reductions in upcoming periods, though exact amounts and timing depend on BetaShares’ decisions. No forward schedule or projected distribution amounts were disclosed.

Holders should also be mindful of their warrant series’ expiry dates, as Self-Funding Instalment MINIs have defined terms and expiry mechanics per the PDS. While ongoing loan reductions are beneficial, the instalment’s value will also be influenced by the underlying YMAX unit price and broader Australian equity market conditions. No immediate share price impact from this distribution announcement was evident, consistent with its administrative nature.

Citigroup’s CitiFirst Structured Products Platform on ASX

Citigroup Global Markets Australia administers the CitiFirst product range, one of the largest suites of exchange-traded structured products on the ASX. The platform includes various products offering leveraged, hedging, or income-focused exposure to Australian and international equities, indices, currencies, and commodities. Self-Funding Instalment MINIs like YM1SO1 and YM1SO3 cater to investors seeking leveraged equity exposure with a self-amortising loan feature driven by underlying asset distributions.

The YMAX CitiFirst instalments are part of a broader family of ETF-linked instalment products listed by Citigroup over BetaShares and other ETFs. Distribution announcements such as this are regularly filed as part of ongoing disclosure for listed warrants on the ASX. Investors seeking more information or access to PDS documents should contact Citigroup Global Markets Australia or visit the ASX website or Citigroup’s investor services portal.