Global X S&P Biotech ETF (ASX:CURE) reported a AUD22.601 million profit for the year to 30 June 2026, reversing the prior year’s AUD2.863 million loss. The turnaround was driven overwhelmingly by gains in listed biotech securities and foreign exchange, rather than recurring income.
- AUD22.601 million profit versus prior-year loss of AUD2.863 million
- AUD22.742 million in net fair-value and foreign exchange gains
- Net assets rose to AUD51.661 million from AUD29.453 million
- No distribution was paid or payable for the year
- Ernst & Young issued an unmodified audit opinion
A sharp rebound in biotech markets turned Global X S&P Biotech ETF (ASX:CURE) from a loss-making fund into a AUD22.601 million profit-maker in the year ended 30 June 2026. The result marks a swing of more than AUD25 million from the prior year’s AUD2.863 million loss, but the source of the improvement matters: almost all of it came from changes in the market value of the portfolio and foreign exchange.
Fair Value Gains Drive the Turnaround
Net gains on financial instruments at fair value through profit or loss, including foreign exchange, reached AUD22.742 million, compared with a AUD2.772 million loss in the previous year. That total comprised AUD14.696 million in unrealised gains and AUD8.046 million in realised gains. Dividends and distributions contributed just AUD48,000, while operating expenses rose modestly to AUD189,000, including AUD171,000 in management fees.
The accounting result therefore reflects a strong year for the fund’s holdings, but it is not equivalent to recurring operating revenue. The portfolio is marked to market, meaning future results will remain exposed to the swings of listed biotechnology shares and the Australian dollar. The report’s own sensitivity analysis shows that a 10% move in the value of the investment portfolio would have changed net assets by AUD5.155 million at year-end, while a 10% currency move would have had an AUD5.005 million impact.
Net Assets Expand Despite Investor Redemptions
Total assets increased to AUD53.372 million from AUD29.466 million, with listed equity securities accounting for AUD51.547 million. Net assets attributable to unitholders rose to AUD51.661 million from AUD29.453 million. The increase came despite 60,000 units being redeemed during the year, partly offset by 40,000 units issued through applications.
Those flows leave the fund with 664,000 units on issue, down from 684,000 a year earlier. Receivables also jumped to AUD1.618 million, largely because AUD1.613 million was receivable on unit subscriptions at 30 June 2026. The fund held AUD207,000 in cash and reported AUD1.711 million in payables, including AUD1.692 million for investment purchases.
No Distribution and No Strategy Change
CURE paid or had payable no distribution for the year, apart from a AUD1,000 amount shown as paid and reinvested in the financial statements. The fund remains designed to track the S&P Biotechnology Select Industry Index before fees and expenses by holding its constituent shares in close proportion to their index weights.
The responsible entity reported no significant change in the fund’s affairs, investment strategy or expected operations after 30 June 2026. Ernst & Young’s audit opinion was unmodified, with investment existence and valuation identified as the key audit matter because listed securities represented 96.58% of total assets. That is a reassuring statement about the accounts, not a forecast for the biotech sector.
Bottom Line?
The headline profit is positive, but the next result will test whether biotech market gains can be repeated without a distribution cushion or a larger unit base.
Questions in the middle?
- How closely will CURE’s future returns track the S&P Biotechnology Select Industry Index after fees and expenses?
- Will the fund’s concentrated exposure to listed biotech securities amplify gains or losses in the next market cycle?
- Can further redemptions be absorbed without materially affecting liquidity or the fund’s portfolio exposure?