Smartshares Limited’s annual report for the year ending 31 March 2026 details mixed fund unit movements, notable management changes, and key investment manager transitions within its suite of Exchange Traded Funds.
- Significant unit growth in select ETFs like Smart US 500 (NZD Hedged) and Smart Total World
- Sharp unit declines in some ESG and property funds
- Leadership changes including new CEO Lisa Turnbull and board reshuffles
- Investment manager swaps for global bond ETFs involving BlackRock and PIMCO
- No changes to governing documents during the year
Fund Unit Movements Highlight Divergent Investor Preferences
Smartshares Limited’s 2026 annual report for its managed Exchange Traded Funds (ETFs) reveals a mixed picture across its diverse portfolio. While flagship funds like the Smart US 500 (NZD Hedged) ETF saw units on issue jump from 54.6 million to 65.25 million, others such as the Smart Australian ESG ETF plummeted from 30.5 million to just over 3.1 million units. Similarly, property-focused ETFs like the Smart NZ Property ETF and Smart Global Property ETF recorded steep declines in units on issue, suggesting shifts in investor appetite away from certain sectors.
Unit prices generally trended higher across most funds, with notable gains in the Smart Australian Resources ETF (from $5.58 to $8.62) and Smart Australian Top 20 ETF (from $4.87 to $5.93), reflecting underlying market movements. However, the Smart Bitcoin ETF’s unit price fell from $3.22 to $2.58 despite doubling its units on issue, highlighting volatility in thematic exposures.
Leadership Transitions Signal New Chapter at Smartshares
The year saw significant changes at the helm of Smartshares. Anna Scott stepped down as CEO on 30 September 2025, with Lisa Turnbull taking over mid-October. The board also experienced turnover: Jon Raby joined as director in October, Guy Elliffe resigned at year-end, and Mark Peterson stepped down as chairperson in May 2026, succeeded by Graham Law. Meanwhile, Public Trust’s board welcomed Karen Price as chair and William Peet as director, reinforcing governance oversight.
Investment Manager Changes for Global Bond ETFs
Smartshares shifted investment management for its global bond ETFs during the period. BlackRock ceased managing the Smart Global Government Bond ETF in October 2025 but took on the Smart Wholesale Global Government Bond Fund, into which the ETF now invests. Similarly, PIMCO ended its management of the Smart Global Bond ETF in May 2026, with management transferring to the Smart Wholesale Global Bond Fund. These moves suggest a strategic consolidation of bond fund management under wholesale vehicles, potentially aiming for operational efficiencies or scale benefits.
Index Update and Stable Governance Framework
In September 2025, the Scheme updated its offer documents and investment policy to allow funds to invest via the Smart Wholesale Scheme and adjusted the benchmark index for the Smart Global Government Bond ETF. The index changed from the Bloomberg Global Aggregate Treasuries (Scaled) Total Return Index (100% NZD Hedged) to the Bloomberg Global Aggregate Treasuries Total Return Index (100% NZD Hedged). No changes were made to the Scheme’s governing documents during the year, maintaining regulatory continuity.
All related party transactions were conducted on arm’s length terms, and the Scheme remains under the supervision of Public Trust with MUFG Pension & Market Services as registrar. The annual report and financial statements include year-end revaluations that may differ from daily unit prices previously disclosed.
Bottom Line?
Smartshares’ 2026 report underscores evolving investor preferences across sectors and regions, alongside leadership and management shifts that may influence future fund strategies.
Questions in the middle?
- What impact will the leadership changes have on Smartshares’ strategic direction and product innovation?
- How will the consolidation of bond fund management under wholesale schemes affect fund performance and fees?
- Will the stark unit declines in ESG and property ETFs signal a longer-term shift in investor sentiment or temporary market reactions?