JPMorgan fund expands as global equity gains lift assets and distributions

Fund assets climb 37% as global equity exposure gains

JPMorgan Global Select Equity Fund (ASX:JHL) ended the 2026 financial year with A$578.268 million in net assets attributable to unitholders, up from A$421.096 million a year earlier. Its operating profit reached A$39.058 million, compared with A$24.717 million in the previous comparison period.

The comparison needs some care: the fund began operations on 23 April 2024, so the prior figure covers only a little more than two months rather than a full financial year. Even so, the latest accounts show a substantially larger vehicle, with financial assets at fair value rising to A$603.608 million from A$425.073 million.

Distributions rise across hedged and unhedged classes

Total distributions paid or payable increased to A$18.639 million from A$4.399 million. Class I unhedged distributions accounted for A$6.787 million, while Class I hedged distributions reached A$7.114 million. Class A distributions were A$1.770 million for unhedged units and A$2.743 million for hedged units.

The fund’s income statement also records A$33.748 million of net gains on financial instruments at fair value through profit or loss, alongside A$6.586 million of distribution income. Those figures are not the same as distributable or realised investment returns: the accounts separately recognise movements in net assets attributable to unitholders and classify those net assets as a liability under Australian Accounting Standards.

One ETF remains the portfolio’s central bet

JHL invested A$601.024 million in the JPMorgan Global Select Equity ETF at year end, representing 100% of its financial assets held at fair value through profit or loss when associated hedging is included. The holding represented a 6.05% interest in the underlying ETF, compared with 3.94% a year earlier.

That structure gives investors access to a global developed-market equity portfolio, with potential exposure to emerging markets through the underlying fund. It also concentrates the Australian vehicle’s results in the performance, liquidity and risk controls of a single underlying investment rather than distributing exposure across several unrelated funds.

Currency hedging expands as derivative liabilities increase

Forward currency contracts had a combined notional exposure of A$263.733 million at 30 June 2026, more than double the A$118.580 million reported a year earlier. The contracts were primarily used to hedge non-Australian-dollar securities, but their year-end fair value position included A$8.802 million of derivative liabilities against A$2.584 million of derivative assets.

The accounts put the sensitivity plainly: a 20% move in the benchmark used for the fund’s price-risk analysis would have changed operating profit and net assets by A$120.205 million in either direction, based on the stated assumptions. A 10% move in the US dollar would have produced an estimated A$40.328 million impact, with additional sensitivities for the euro, yen, pound and other currencies.

Audit clears accounts while investor flows remain active

Unitholder applications totalled A$368.009 million during the year, against A$231.266 million of redemptions. Class A hedged and Class I hedged units expanded particularly quickly, while the fund retained A$2.324 million in cash at year end. The report says no redemptions were rejected or withheld during either 2026 or 2025.

PricewaterhouseCoopers issued an unqualified opinion, identifying the valuation and existence of the fund’s sizeable level-one and level-two investments as a key audit matter. The only governance change disclosed was the replacement of Vicki Riggio by David Manoukian as alternate director for Phillip Blackmore at the responsible entity.