CD Private Equity Fund III Announces AUD 0.12 Special Distribution to Ordinary Unit Holders

Details and Schedule of the Special Distribution

CD Private Equity Fund III has declared a special distribution amounting to AUD 0.12 per ordinary unit, representing a capital return to unit holders. Classified as a special dividend under ASX listing rules, this payment is not tied to any specific financial year period. The distribution will be paid in Australian dollars to all eligible holders recorded on the record date. The confirmed amount of AUD 0.12 per unit is final, providing investors certainty regarding the payment value.

The distribution timetable adheres to standard ASX protocols. The ex-date on 5 August 2026 marks the last day for buyers to be entitled to the distribution. The record date of 6 August 2026 establishes which holders qualify for payment. Eligible investors as of the record date will receive the distribution on 27 August 2026, allowing sufficient time for processing and settlement.

Tax Treatment and Franking Status

This special distribution carries zero franking credits, meaning recipients will receive 100% unfranked income of AUD 0.12 per unit with no conduit foreign income component. Australian taxpayers should consider potential tax implications based on their individual circumstances and the fund’s investment income sources.

The lack of franking credits suggests the distribution may be a return of capital or income not subject to Australian corporate tax within the fund. Investors should evaluate the tax consequences of unfranked distributions, which differ from franked payments, and seek personalized tax advice prior to the payment date.

Fund Structure and Investment Operations

CD Private Equity Fund III operates as an ASX-listed investment fund (ARSN 612132813) trading under the code CD3, offering investors exposure to private equity assets. The fund aims to generate returns through its portfolio and regularly distributes income as part of its capital management strategy.

This special distribution reflects the fund’s underlying asset performance and represents a return of capital or distributable income consistent with its mandate. The choice to declare a special rather than regular distribution indicates an extraordinary capital event or return to investors at this time.

Absence of Franking Credits Under Current Policy

The fund confirms the distribution contains no franking credits, with 0% franked amount. Consequently, the full AUD 0.12 per unit is unfranked, providing no franking offset for Australian resident investors, including retirees or those in lower tax brackets.

This unfranked status may reflect the tax position of the fund’s investments or the nature of the capital returned. Such distributions are common in private equity funds where returns may arise from capital gains or foreign investments not subject to Australian corporate tax. Investors should consider these tax aspects with their financial advisors before the ex-date.

Investor Eligibility and Record Date Importance

To qualify for the special distribution, investors must hold CD3 ordinary units by the record date of 6 August 2026. The ex-date on 5 August 2026 is one business day prior, aligning with ASX settlement rules. Purchases made on or after the ex-date will not be eligible for this payment.

Unit holders should ensure their holdings are settled and registered by the record date to receive the distribution. Those holding units via brokers or custodians should verify that ownership is properly recorded to maintain eligibility.

Regulatory Approvals and Distribution Conditions

CD Private Equity Fund III has confirmed that this special distribution does not require approvals from security holders, courts, ASIC, ACCC, or FIRB. This indicates the payment falls within the fund’s ordinary business activities and complies with relevant regulatory frameworks, allowing the distribution to proceed without delay.

The announcement was made in accordance with ASX Listing Rule Appendix 3A.1, fulfilling disclosure obligations by providing detailed information on the distribution’s timing, amount, and tax treatment to the market and unit holders.

Additional Disclosure and Documentation

Further details about the special distribution are available in a separate announcement dated 28 July 2026, concurrent with the ASX notification. Investors seeking more information on the distribution rationale, investment performance, or capital management decisions should consult this supplementary release.

All related documents can be accessed via the ASX website or directly from CD Private Equity Fund III. The fund’s registry will provide payment details and any options available, such as dividend reinvestment plans, although no such schemes have been indicated for this distribution.

Effect on Unit Pricing and Capital Value

The special distribution constitutes a return of capital, which may reduce the net asset value per unit around the ex-date. This adjustment is typical as distributions are paid from the fund’s assets rather than reinvested. Unit holders should consider whether to reinvest proceeds or allocate capital elsewhere.

For long-term holders, distributions contribute to total returns alongside unit price appreciation. The unfranked nature of this payment may result in lower after-tax returns compared to franked distributions, depending on individual tax rates. Investors should monitor the impact on portfolio performance and review the fund’s historical distribution patterns.

Important Dates for Unit Holders

Unit holders should note these key dates: ex-date on 5 August 2026, after which new purchases are ineligible; record date on 6 August 2026, which determines entitlement; and payment date on 27 August 2026, when distributions will be made. These dates are critical for investment decisions around the distribution period.

To receive the distribution, units must be settled and recorded before the record date. Investors holding units through custodians or brokers should confirm settlement timing to ensure eligibility. For questions regarding the distribution, eligibility, or payment, unit holders should contact the fund’s registry or administrator directly.