Citigroup Announces AUD 0.06092893 Partially Franked Distribution for HVST CitiFirst Instalment MINIs Linked to BetaShares Australian Dividend Harvester Fund

Distribution Details and Partial Franking of HVST CitiFirst Instalment MINIs

Citigroup Global Markets Australia Pty Limited has confirmed that holders of the HVST CitiFirst Instalment MINIs—listed on the Australian Securities Exchange under tickers HVSJOA, HVSJOB, and HVSJOD—are entitled to a distribution of AUD 0.06092893 per unit. This distribution is partially franked, allowing eligible investors to potentially claim a portion of franking credits attached, subject to their individual tax situations.

Partial franking is typical for structured products linked to dividend-focused funds. The extent of franking depends on the dividends received by the underlying HVST BetaShares Australian Dividend Harvester Fund from its Australian equities portfolio. Investors should consult tax advisors regarding applicable franking credits on their MINI holdings.

Alignment of HVST CitiFirst MINI Distribution Dates with BetaShares Dividend Harvester Fund

The record and ex-distribution dates for the HVST CitiFirst Instalment MINIs have been intentionally aligned with those of the underlying HVST BetaShares Australian Dividend Harvester Fund. The record date for entitlements is 2 July 2026, matching the fund’s record date, while the ex-distribution date is 1 July 2026, mirroring the fund’s ex-distribution date.

This alignment ensures that the economic exposure of the MINI products closely follows the income events of the underlying fund. As structured products providing leveraged or instalment-based exposure without direct fund unit ownership, this synchronization maintains the product’s structural integrity for investors.

Record Date and Eligibility for Distribution

Investors recorded as holders of HVSJOA, HVSJOB, or HVSJOD at the close of business on 2 July 2026 will be entitled to the AUD 0.06092893 partially franked distribution. Purchases made on or after the ex-distribution date of 1 July 2026 will not qualify for this distribution.

The ex-distribution date marks when the products began trading without entitlement to the upcoming distribution. Given standard ASX settlement conventions, trades executed on or after 1 July 2026 settle after the record date, excluding buyers from this income event. Existing registered holders before 1 July 2026 will receive the distribution.

Distribution Payment Timing Around 16 July 2026

Citigroup Global Markets Australia’s update indicates that the Trustee will coordinate distribution payments to MINI holders to coincide, as reasonably practicable, with receipt of the distribution from the underlying fund, expected on 16 July 2026. This date is the target for distribution payments to MINI investors.

The phrase "as reasonably practicable" suggests that while Citigroup aims for prompt payment upon receipt, slight timing variations may occur due to operational factors. Investors should be aware that payment timing can differ marginally if administrative processes affect the flow-through from the underlying fund to the MINI structure.

Citigroup Global Markets Australia’s Role as Issuer

Citigroup Global Markets Australia Pty Limited (ABN 64 003 114 832, AFSL 240992) issues the HVST CitiFirst Instalment MINIs and participates in both the ASX Group and Cboe Australia. The company manages and administers the MINIs, including declaring and paying distributions passed through from the HVST BetaShares Australian Dividend Harvester Fund. The warrant report was signed by Paul Kedwell, Warrants and Structured Products Manager, overseeing Citigroup’s structured investment products in Australia.

CitiFirst is Citigroup’s retail structured products brand in Australia, offering a range of instruments such as MINIs, Self-Funding Instalments (SFIs), Trading Warrants, Turbos, and standard Instalments. The HVST Instalment MINIs series—HVSJOA, HVSJOB, and HVSJOD—have slightly different terms but share the same underlying fund and distribution event described here.

Impact of the HVST BetaShares Australian Dividend Harvester Fund on MINI Investors

The BetaShares Australian Dividend Harvester Fund (ASX:HVST) is an exchange-traded fund managed by BetaShares that focuses on generating high income from Australian equities through a dividend harvesting strategy. It aims to provide regular income distributions by actively managing positions around dividend dates of ASX-listed companies. As the reference asset for the CitiFirst Instalment MINIs, HVST’s distribution activity directly influences the income events for MINI holders.

For MINI investors, exposure to an income-focused fund like HVST means distribution events are routine. Instalment MINIs allow investors to gain economic exposure to the total return of the underlying fund—including distributions—while paying only part of the exposure upfront, with the remainder funded via an instalment loan facility. This leveraged structure means distribution income is one element of a complex risk-return profile that investors should understand before investing.

Comparing the Three MINI Series: HVSJOA, HVSJOB, and HVSJOD

The company update covers three CitiFirst Instalment MINI series—HVSJOA, HVSJOB, and HVSJOD—all linked to the same HVST BetaShares Australian Dividend Harvester Fund. Each is subject to the same AUD 0.06092893 partially franked distribution and identical record and ex-distribution dates. However, the series may differ in instalment loan balances, expiry dates, or other structural terms.

The announcement does not disclose specific structural differences or the number of units outstanding or total distribution value for each series. Investors should consult individual product disclosure statements and prior term sheet documents from Citigroup Global Markets Australia for full details on how each MINI operates and how distributions affect their instalment loan balances.

Considerations for Investors Holding Instalment MINIs Through the Ex-Distribution Period

Investors registered as holders of HVSJOA, HVSJOB, or HVSJOD before the ex-distribution date of 1 July 2026 will receive the AUD 0.06092893 per unit distribution. Depending on MINI product terms, distributions may be applied to reduce the outstanding instalment loan balance rather than paid out as cash. Investors should verify with Citigroup or review product documentation to understand distribution application for their specific series.

The partial franking status is important for investors subject to Australian income tax, as franking credits can affect the after-tax value of the distribution. Superannuation funds or tax-advantaged structures may benefit from these credits, while investors in higher tax brackets should carefully assess tax implications. The immediate impact of the distribution on MINI share prices was not disclosed.

Upcoming Dates and Actions for HVST CitiFirst Instalment MINI Holders

With the ex-distribution date passed on 1 July 2026 and the record date on 2 July 2026, the key remaining event is the distribution payment expected around 16 July 2026. Investors should ensure their holdings are properly registered and payment instructions with brokers or trustees are current ahead of this date.

Looking ahead, holders should monitor future distribution announcements from the BetaShares Australian Dividend Harvester Fund, which will prompt further warrant report updates from Citigroup Global Markets Australia. As HVST is designed for regular income, additional distribution events are expected quarterly. Changes in the fund’s distribution policy, portfolio, or franking rates could influence the amount and tax treatment of future distributions to MINI holders.