Spheria Australian Smaller Companies Active ETF Announces Final Distribution of $0.2027 Per Unit for FY2026

SPHX Declares $0.2027 Final Distribution Per Unit for FY2026

On 3 July 2026, Pinnacle Fund Services Limited, the responsible entity for the Spheria Australian Smaller Companies Fund – Active ETF, confirmed a final distribution of $0.202711186 per unit for the financial year ended 30 June 2026. This amount represents the total distribution payable to unitholders recorded on the fund's register as of the record date, with payment scheduled for 13 July 2026.

The distribution reflects a diverse mix of income and capital gain components derived from the fund’s investment activities in Australian smaller companies and select foreign holdings over the year. Unitholders will receive a detailed breakdown of these components in the fund’s annual AMMA tax statement, expected after the financial year’s close. The announcement was signed by Terence Kwong, Company Secretary at Pinnacle Fund Services Limited.

Tax Component Breakdown of the $0.2027 SPHX Distribution

The distribution includes various tax components that may impact unitholders’ tax positions differently. Australian-sourced income comprises interest of $0.01152414430 per unit, other Australian income of $0.02144926650 per unit, franked dividends totaling $0.06229034230 per unit, unfranked dividends of $0.00175709050 per unit, and conduit foreign income of $0.02935959660 per unit.

Foreign-sourced income accounts for $0.01544737160 per unit. Capital gains consist of non-TAP (NTAP) discounted capital gains amounting to $0.02748734720 per unit. Non-assessable income and other items include a CGT concession of $0.02748734720 per unit, other non-assessable amounts of $0.00302744500 per unit, and non-assessable non-exempt income of $0.00288123470 per unit. The fund advises that these figures are estimates and should not be solely relied upon for tax return purposes without the final AMMA statement.

Franking Credits and Trans-Tasman Offsets Total $0.0434 Per Unit in Tax Offsets

A significant aspect of the FY2026 final distribution is the inclusion of tax offsets. Franking credits attached to franked dividends amount to $0.03917964550 per unit, providing Australian resident unitholders with a tax offset against their distribution income.

Foreign income tax offsets of $0.00367127140 per unit arise from foreign taxes paid on the fund’s overseas income. Additionally, Trans-Tasman imputation credits of $0.00050030560 per unit reflect New Zealand-sourced income with imputation credits under the Trans-Tasman mutual recognition framework. Collectively, these tax offsets total $0.043351223 per unit, potentially reducing the tax burden for eligible investors.

Distribution Payment Scheduled for 13 July 2026 and Calculation Method

Distributions will be paid on 13 July 2026. The amount is calculated based on units held by each unitholder at the record date, entitling investors on that date to receive the full per-unit distribution of $0.202711186 proportionate to their holdings.

Unitholders with larger holdings will receive correspondingly larger payments. The announcement did not disclose the aggregate distribution amount or the fund’s total net asset value or unit count at the record date. Unitholders should contact the unit registry or their brokers to confirm individual entitlements.

Distribution Reinvestment Plan Automatically Applies to Unitholders Not Electing Cash

Unitholders who did not elect to receive cash by 5pm on 3 July 2026 will have their distributions automatically reinvested under the fund’s Distribution Reinvestment Plan (DRP), details of which are available on Spheria’s website. Eligible investors will receive additional SPHX units instead of cash, with unit numbers determined by the DRP pricing mechanism.

The DRP facilitates compounding returns by allowing reinvestment without brokerage fees. Unitholders wishing to change their DRP status for future distributions should adhere to deadlines and contact the unit registry ahead of record dates. The DRP rules are accessible via Spheria’s official site.

SPHX Adopts Direct Credit Payments to Enhance Security and Convenience

The update also notes that SPHX is transitioning to direct crediting for distribution payments, replacing cheque or other methods. This change aims to provide a safer and more convenient payment process consistent with industry trends in Australian managed funds and ETFs.

Unitholders who have not provided Australian bank account details and are not participating in the DRP may experience payment delays, as funds will be held until payment instructions are received. To avoid delays for the 13 July 2026 distribution, affected investors should supply their bank details to the unit registry before the record date. Those uncertain about their payment election status are advised to contact the registry promptly.

Annual AMMA Tax Statement Will Detail Full-Year Distribution Components

While this notice provides an estimated breakdown of income and capital gain components, the fund cautions unitholders not to rely on it for tax return purposes. The definitive tax information will be included in the annual AMMA (Attribution Managed Investment Trust Member Annual) tax statement issued after the financial year ends.

The AMMA statement is a regulatory document for Attribution Managed Investment Trusts (AMITs) in Australia, detailing precise income and gain allocations for tax reporting. The AMIT regime allows trusts to attribute tax character amounts directly to members, simplifying tax treatment. Unitholders should keep this distribution notice for reference but await the AMMA statement before filing tax returns including SPHX distributions.

Insights from the FY2026 Distribution Composition on Fund Activity

The FY2026 distribution composition offers insights into the fund’s investment activity. The largest assessable component, franked dividends ($0.0623 per unit), indicates holdings in dividend-paying Australian companies. The conduit foreign income ($0.0294 per unit) suggests investments generating international income qualifying for pass-through treatment.

Discounted capital gains ($0.0275 per unit NTAP) and the associated CGT concession imply the fund realised gains on assets held over twelve months, allowing unitholders to benefit from the 50% CGT discount under Australian tax law. Foreign income and related tax offsets confirm some international exposure within the smaller companies mandate. For a comprehensive view of portfolio composition and performance, investors should consult Spheria’s regular fund reports rather than this distribution notice alone.

About Spheria Australian Smaller Companies Fund – Active ETF and Its Investment Strategy

The Spheria Australian Smaller Companies Fund – Active ETF (ASX:SPHX) is an actively managed ETF offering exposure to a portfolio of Australian smaller companies, managed by Spheria Asset Management. Pinnacle Fund Services Limited (ABN 29 082 494 362, AFSL 238371) acts as the responsible entity. Pinnacle is a well-established multi-affiliate investment manager in Australia. The active ETF structure enables trading on the ASX like a listed security while allowing active management rather than passive index tracking.

The smaller companies sector in Australia is generally viewed as offering potential for higher long-term capital growth than large-cap equities, albeit with greater volatility and lower liquidity. Active management aims to identify undervalued opportunities often overlooked due to limited analyst coverage. Prospective investors should review the fund’s product disclosure statement and consider independent financial advice to determine suitability. The immediate market impact of this distribution announcement was not evident from publicly available information.