Savana US Small Caps ETF Posts AUD 1.37 Million Profit in FY 2026

Profit Turnaround and Asset Growth

The Savana US Small Caps Active ETF (ASX:SVNP) reported a striking turnaround for the financial year ended 30 June 2026, posting a profit before finance costs attributable to unit holders of AUD 1,373,889, compared to a loss of AUD 156,151 the previous year. This swing reflects a robust recovery in US small cap equities, the Fund’s core investment focus, and contributed to a 65% increase in net assets to AUD 5.94 million from AUD 3.60 million.

Net inflows supported the growth, with applications exceeding redemptions by approximately AUD 1.09 million. The Fund’s units on issue rose to 3.3 million from 2.67 million, underscoring growing investor appetite for active exposure to US small caps.

Income, Fees, and Distributions

Dividend income increased modestly to AUD 136,817, while net gains on financial instruments at fair value through profit or loss contributed AUD 1.56 million, a stark reversal from the prior year’s AUD 331,919 loss. Foreign exchange movements trimmed gains by AUD 135,099, reflecting currency volatility inherent in US-focused portfolios.

Management fees and costs rose to AUD 46,291, while performance fees surged to AUD 70,571, reflecting the Fund’s improved returns. The Fund paid distributions totalling AUD 121,191, equating to 3.67 cents per unit, marking the first distribution since inception.

Governance and Operational Stability

K2 Asset Management Ltd remains the Responsible Entity, with Fat Prophets Funds Management Pty Limited as Investment Manager and Savana Asset Management Pty Limited as Investment Advisor. The Fund maintained a stable operational profile, with no employees and no significant changes to its investment mandate or activities during the year.

Director turnover was minor, with Neil Sheather retiring and Andrew MacDonald appointed in June 2026. The Fund’s auditor, KPMG, issued an unqualified opinion, highlighting robust controls over valuation and performance fee calculations, and confirming compliance with Australian Accounting Standards and IFRS.

Risk Management and Market Exposure

The Fund’s portfolio remains fully invested in US small cap listed equities, valued at AUD 6.02 million at year-end, with cash holdings of AUD 46,393. Market risk, foreign exchange risk, and liquidity risk are actively managed, with sensitivity analyses indicating a potential 10% price movement could impact net assets by approximately AUD 602,000.

Foreign exchange exposure is monitored closely given the AUD/USD currency fluctuations, which have historically influenced performance outcomes. The Fund’s investment approach and risk management framework continue to reflect a disciplined, active strategy in this niche segment.

Looking Ahead

With the Fund’s strong rebound and growing asset base, attention will turn to sustaining performance amid ongoing US market volatility and currency headwinds. The Fund’s active management style and focus on US small caps position it to potentially capitalize on evolving market dynamics, but investors should remain mindful of the inherent risks in this segment.

As the Fund approaches its fifth year on the ASX, the evolution of regulatory standards, including the upcoming adoption of AASB 18 in FY 2028, may introduce changes in financial reporting presentation, though not expected to affect underlying asset valuations or returns.