Avantis Emerging Markets ETF starts strongly after ASX move

Positive first result, but benchmark gap remains

Avantis Emerging Markets Equity Active ETF (ASX:AVTE) generated a A$2.001 million audited profit in the period covered by its first annual report, giving the newly established fund a profitable opening financial snapshot. The return to investors was 20.29% net of fees, according to the directors’ report, although the MSCI Emerging Markets IMI Index in Australian dollars returned 23.32% over the same period.

That 3.03 percentage-point gap is the more revealing performance figure. The fund’s result was positive, but its active approach did not outperform its stated benchmark during the period measured. The comparison should be treated carefully: there is no prior-year data, and the fund’s reporting period begins on 15 April 2025 while operations commenced on 16 September 2025.

A$14.6 million fund concentrated in one underlying ETF

At 30 June 2026, the fund had net assets attributable to unitholders of A$14.598 million. Almost all of that capital was represented by a A$14.580 million holding in the Avantis Emerging Markets Equity UCITS ETF, the underlying vehicle managed by American Century Investment Management.

That structure gives investors a relatively clear picture of where the exposure sits, but it also concentrates the fund’s asset value and performance in the underlying ETF. The report records a possible 10% move in portfolio prices as changing net assets by approximately A$1.458 million in either direction. The fund also held a forward currency contract, used primarily to economically hedge foreign exchange exposure, with a reported net liability value of A$443.

ASX quotation followed Cboe debut

The fund began trading on Cboe in October 2025 before being dequoted there on 27 March 2026. It commenced quotation on the Australian Securities Exchange on 1 April 2026 under the ticker AVTE, meaning the annual report captures a significant change in its trading venue during the period.

Applications totalled A$12.600 million, while redemptions were only A$3,000 in value, leaving 1.198 million units on issue at period-end. No distribution was declared. The investment manager, American Century Investment Management, held 449,304 units, representing 37.51% of the fund at 30 June 2026, according to the related-party disclosures.

Audit clears valuation of the core portfolio

Deloitte issued an unqualified audit opinion. It identified the valuation of financial assets at fair value through profit or loss as the key audit matter because those assets accounted for virtually all of the fund’s net asset value. Deloitte’s procedures included checking holdings with the custodian and counterparties and testing prices for listed unit trusts against publicly available information.

The report contains no subsequent event that significantly affected the fund’s financial position or future operations, and no contingent liabilities or commitments were outstanding at the reporting date. The directors also noted that future returns will depend on investment markets and are not guaranteed, a particularly relevant qualification for a portfolio exposed substantially to emerging-market equities and foreign currency movements.