Perpetual Diversified Income Fund lifted operating profit 38% to $169.9 million and grew net assets to $3.255 billion in the year to 30 June 2026. The fund also launched its Class E Active ETF, ASX:DIFF, while KPMG issued an unqualified audit opinion.
- Operating profit rose to $169.895 million from $122.923 million
- Net assets attributable to unitholders increased to $3.255 billion
- Debt securities made up $3.026 billion of investments at year-end
- Class E Active ETF launched as ASX:DIFF during the year
- Total distributions paid or payable reached $169.483 million
Fund assets climb as income strengthens
Perpetual Diversified Income Fund (ASX:DIF) finished the 2026 financial year with $3.255 billion in net assets attributable to unitholders, up from $2.415 billion a year earlier. Operating profit rose to $169.895 million from $122.923 million, although the filing does not provide a detailed attribution of how much of the improvement came from investment performance, investor flows or market movements.
The fund’s investment income increased to $187.329 million, helped by interest income of $137.330 million compared with $109.685 million in the prior year. Net foreign exchange gains also jumped to $24.221 million from $583, while net gains on financial instruments eased to $9.701 million from $12.259 million.
Debt securities dominate the portfolio
Financial assets at fair value rose to $3.260 billion from $2.416 billion. Debt securities accounted for $3.026 billion of that balance, compared with $2.073 billion a year earlier, while holdings in the Perpetual Institutional Cash Management Trust fell to $226.273 million from $340.594 million.
The portfolio’s reported value-at-risk increased to $21.485 million, or 0.66% of net assets, from $2.897 million, or 0.12%, in 2025. The measure estimates potential losses over 21 days at a 95% confidence level and is explicitly limited by its assumptions, so it is a risk indicator rather than a forecast of future losses. Credit quality remained concentrated in investment-grade debt, with $1.006 billion rated AAA to AA-, $485.341 million rated A+ to A- and $1.424 billion rated BBB+ to BBB-.
New ETF class adds a listed access point
The fund launched Class E Active ETF, quoted on the ASX as DIFF, on 7 August 2025. By 30 June 2026, the class had attracted 28.8 million units and net assets of $288.143 million. It paid or accrued $11.531 million in distributions across the year, including 51.45 cents per unit, although that figure covers the class’s first partial year and is not directly comparable with the full-year figures for the older classes.
Across all classes, distributions paid or payable rose to $169.483 million from $131.413 million. The increase was driven partly by the larger asset base and the new ETF class. Per-unit distributions for Wholesale, Retail and Class S were lower than in 2025, at 5.35 cents, 5.22 cents and 5.93 cents respectively, against 5.70 cents, 5.59 cents and 6.28 cents previously.
Audit clears valuation as central test
KPMG gave the financial statements an unqualified opinion. The auditor identified the existence and valuation of the fund’s $3.260 billion of financial assets and $12.132 million of financial liabilities at fair value as the key audit matter, reflecting the importance of those balances to the fund’s financial position and reported performance. The audit report said there were no material matters to report beyond that valuation focus.
The fund incurred $16.888 million in Responsible Entity fees during the year, up from $12.356 million, with management fees ranging from 0.40% for Class S to 0.70% for the Retail class. The next useful evidence will be whether the new DIFF class continues to attract assets and whether the stronger interest income and foreign exchange contribution can be repeated without a corresponding rise in portfolio risk.
Bottom Line?
The fund is larger, more profitable and now has a listed ETF entry point, but the durability of the uplift depends on future income, currency effects and DIFF flows.
Questions in the middle?
- How much of the asset growth came from net investor applications versus investment returns?
- Can the higher interest income be maintained as rates and credit conditions change?
- Will DIFF continue to gather assets without weakening liquidity or distribution outcomes across the wider fund?