Ophir Fund’s Net Assets Rise 6.24% While Profit Drops 62.7% in H1 2025
Ophir High Conviction Fund reported a 6.24% increase in net assets to $765 million for the half-year ended December 2025, despite a sharp 62.7% fall in operating profit. The Fund’s portfolio performance slowed significantly, prompting no distributions during the period.
- Net assets rose 6.24% to $764.9 million
- Operating profit declined 62.7% to $29.3 million
- Portfolio return slowed to 4.0% from 12.18% in prior period
- No distributions paid or declared for the half-year
- Director changes with one resignation and one appointment in November 2025
Interim Financial Performance
Ophir High Conviction Fund has released its interim results for the half-year ended 31 December 2025, revealing a mixed performance. The Fund’s net assets attributable to unitholders increased by 6.24% to $764.9 million, reflecting ongoing investor confidence and capital growth despite challenging market conditions.
However, the Fund’s operating profit took a significant hit, falling 62.7% to $29.3 million compared to $78.5 million in the previous corresponding period. This decline was primarily driven by a slowdown in portfolio returns, which dropped to 4.0% from a robust 12.18% in the prior half-year.
Portfolio and Investment Strategy
The Fund maintains its focus on a concentrated portfolio of high-quality Australian listed companies outside the ASX 50, with selective international exposure, including New Zealand equities. The reduced portfolio performance suggests that market volatility and sector-specific challenges may have impacted the Fund’s holdings during the period.
Despite the profit decline, the Fund’s net tangible asset value per unit rose to $3.4364 from $3.2345 a year earlier, indicating underlying asset appreciation. The Fund did not pay or declare any distributions for the half-year, consistent with its strategy to reinvest earnings amid uncertain market conditions.
Governance and Operational Updates
There were notable changes in the Fund’s governance during the period. Director Vicki Riggio resigned in mid-November 2025, with David Manoukian appointed the following day. The Fund continues to be managed by The Trust Company (RE Services) Limited as Responsible Entity, with Ophir Asset Management Pty Limited as the investment manager.
The financial statements were reviewed by Ernst & Young, who reported no issues or independence concerns. The Fund remains a closed-ended investment vehicle, with no changes in units on issue during the period.
Looking Ahead
While the Fund’s interim results reflect a period of subdued returns, the increase in net assets and stable governance framework provide a foundation for potential recovery. The Fund’s management has reiterated its commitment to adhering to its investment objectives and constitution, navigating market fluctuations with a high-conviction approach.
Bottom Line?
Ophir’s asset growth cushions a sharp profit fall, setting the stage for scrutiny on future portfolio performance and distribution policy.
Questions in the middle?
- What factors contributed most to the sharp decline in operating profit despite asset growth?
- Will Ophir High Conviction Fund resume distributions in the next reporting period?
- How will recent director changes influence the Fund’s strategic direction and risk management?
