iShares S&P 500 (AUD Hedged) ETF Added to TOFA Hedging Election List in PDS Update

Manish Choudhary

04 November 2026 04:58 PM AEDT

iShares S&P 500 (AUD Hedged) ETF Added to TOFA Hedging Election List in PDS Update

Image Source: Krish Capital Pty Ltd

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iShares S&P 500 (AUD Hedged) ETF (ASX:IHVV) has been added to the list of exchange traded funds for which BlackRock Investment Management (Australia) Limited intends to apply the Taxation of Financial Arrangements hedging election, following a decision by the Responsible Entity to update the fund's Product Disclosure Statement dated 24 September 2026.

Key Points

BlackRock Investment Management (Australia) Limited has decided to make the TOFA hedging election for the iShares S&P 500 (AUD Hedged) ETF (ARSN 602 618 691).
The PDS update adds the fund to the list of ETFs subject to the TOFA hedging election, alongside the iShares MSCI World ex Australia Quality (AUD Hedged) ETF and iShares MSCI World ex Australia Value (AUD Hedged) ETF.
The TOFA hedging election is intended to apply to the fund's next distribution, expected to be June 2027.
The change does not impact the investment objective or investment strategy of the fund, and does not affect any other fund contained within the PDS.

TOFA Hedging Election and PDS Amendment

Under the Taxation of Financial Arrangements rules, the Responsible Entity may elect to apply a hedging tax-timing method in relation to the fund. Where the election applies, gains and losses on qualifying hedging financial arrangements are generally brought to account for tax purposes at the same time, and with the same character, as the item being hedged. The Responsible Entity has decided to make the TOFA hedging election for the iShares S&P 500 (AUD Hedged) ETF, resulting in an update to the TOFA disclosure on page 66 of the PDS, within Section 39.5 titled "Taxable Income of a Fund."

Scope of the PDS Change

The filing states that the only change to Section 39.5 of the PDS is the addition of the iShares S&P 500 (AUD Hedged) ETF to the list of ETFs for which the Responsible Entity intends to apply the TOFA hedging election. The remainder of that section is unchanged. The updated list now comprises three funds: the iShares MSCI World ex Australia Quality (AUD Hedged) ETF, the iShares MSCI World ex Australia Value (AUD Hedged) ETF, and the iShares S&P 500 (AUD Hedged) ETF. No other fund contained within the PDS is affected by this change.

Regulatory Basis and Distribution Timeline

The notification was issued by BlackRock Investment Management (Australia) Limited pursuant to ASIC Corporations (Updated Product Disclosure Statements) Instrument 2016/1055, on the basis that the change is not materially adverse to investors and is made for the purposes of providing updated information regarding the fund's Product Disclosure Statement dated 24 September 2026. The Responsible Entity stated that the TOFA hedging election is intended to apply to the fund's next distribution, which is expected to be June 2027. The filing was dated 5 November 2026.

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