Loftus Peak’s global fund clears its benchmarks as assets surge

Both ETF classes outperform their benchmarks

Loftus Peak Global Disruption Fund (ASX:LPGD; LPHD) finished the year with a clear, if not dramatic, edge over its stated benchmarks. The unhedged class returned 20.26% net of fees for the year ended 30 June 2026, compared with 17.61% for the MSCI All Countries World Index in Australian dollars. Its hedged class returned 25.83%, against 25.13% for the hedged index.

That represents outperformance of 2.65 percentage points for LPGD and 0.70 points for LPHD. The figures are based on end-of-month unit prices after fees and expenses, with distributions reinvested. They describe the completed financial year, rather than current performance, and the report explicitly cautions that past returns should not be used to predict future results.

Net assets approach the billion-dollar mark

The fund’s net assets attributable to unit holders rose from $650.8 million to $936.7 million over the year. The portfolio held $935.2 million in financial assets at fair value at 30 June, including $934.5 million in equity securities and $718,000 in forward currency contract assets.

Investor activity also expanded. Across the two classes, applications totalled $356.5 million, while redemptions were $153.9 million. LPGD closed the year with $807.8 million in net assets, up from $617.9 million, while LPHD ended at $128.9 million compared with $32.9 million a year earlier. The hedged class changed its name in September 2025 to Loftus Peak Global Disruption Hedged Active ETF and trades under LPHD.

Distributions and fund costs both increased

The annual distribution for LPGD rose to 49 cents per unit from 33.33 cents, while LPHD’s distribution increased to 60 cents from 15 cents. Total distributions declared or payable reached $74.2 million, compared with $41.5 million in the prior year.

The cost of delivering those results also moved higher as the fund grew. Management fees and costs increased to $9.74 million from $7.35 million, while performance fees rose to $5.63 million from $3.92 million. Ernst & Young identified investment valuation and the calculation of management and performance fees as key audit matters, reflecting their weight in the fund’s financial statements rather than any reported audit qualification.

Audit finds no material qualification

Ernst & Young gave the annual report an unmodified opinion, stating that it presented a true and fair view of the fund’s financial position and performance and complied with Australian accounting standards and the Corporations Act. The auditor confirmed the existence and valuation of the listed investment portfolio through third-party confirmations and independent pricing checks.

The fund remains exposed to global equity prices and foreign exchange movements. Its own sensitivity analysis indicated that a 20% move in portfolio prices would have changed net assets by approximately $187.0 million in either direction at year-end. Forward currency contracts are used to manage currency exposure, but the report says derivatives are not used to gear the portfolio.