Antipodes SMID Fund surges past $183 million after standout FY2026

Profit jumps as the portfolio expands

Antipodes Global SMID Fund (ASX:MIDS) has reported a markedly larger and more profitable FY2026, with profit attributable to unitholders rising to $22.73 million from $5.89 million a year earlier. Net assets reached $183.65 million at 30 June 2026, compared with $21.97 million previously.

The result was driven overwhelmingly by investment performance rather than conventional operating revenue. Net gains on financial instruments at fair value through profit or loss reached $23.26 million, up from $5.66 million, while dividend and distribution income increased to $1.29 million. The fund said it strongly outperformed the MSCI All Country World SMID Index during the year, although the annual report does not provide the fund’s precise return or the benchmark’s return.

New unit class and ASX access reshape the fund

Fund growth was also reflected in investor flows. Unitholders applied $150.63 million during the year, while redemptions totalled $12.65 million. The fund launched its M Class on 24 September 2025, and its P Class units began trading on the ASX under ticker MIDS on 10 November 2025, giving investors both exchange-based and direct access.

The three unit classes closed the year with $23.02 million in M Class assets, $135.05 million in P Class assets and $25.58 million in Z Class assets. Distributions were $280,000 for M Class, $596,000 for P Class and $486,000 for Z Class. The differing classes carry different fee arrangements, with management fees of 0.95% a year for M Class, 1.20% for P Class and nil for Z Class.

Fees rise alongside investment gains

Management fees rose to $753,174 from $6,302, while performance fees increased to $856,602 from $20,816. The larger charges reflect the fund’s substantially expanded asset base and its 15% performance fee on returns above the MSCI ACWI SMID Cap Net Index in Australian dollars, calculated after management fees.

That fee structure matters because the headline profit is not a recurring operating measure: much of the year’s gain came from changes in the fair value of listed investments. At year-end, listed equity securities accounted for $180.25 million of the fund’s $181.54 million in financial assets measured at fair value through profit or loss.

Market gains come with a larger risk surface

The annual report records a portfolio concentrated across global markets, with software representing about 16% of investments and internet holdings about 10%. The fund’s direct exposure was predominantly listed equities, supplemented by options and foreign exchange forwards. It stated that derivatives were not used to gear the portfolio.

Even so, the sensitivity disclosures show how quickly outcomes can move in either direction. A 10% change in equity and derivative prices would have affected net assets by approximately $18.13 million at year-end. A 15% move in currencies against the Australian dollar was estimated to produce an adverse effect of $23.46 million or a favourable effect of $31.74 million, with the largest exposure in US dollars.

Audit clears the accounts, but performance remains market-dependent

PricewaterhouseCoopers issued an unqualified audit opinion, identifying the financial significance of investments at fair value through profit or loss as the key audit matter. The auditor reported no material issues, and the fund said no significant post-year-end event had affected its position.

The more immediate question is whether the fund’s enlarged base and strong FY2026 performance can be sustained through a different market regime. The report itself cautions that investment performance is not guaranteed, while the listed structure adds another variable for investors: the liquidity and trading behaviour of MIDS units on the ASX.