Ziller’s larger asset base remains exposed to market losses

• $1.77 million comprehensive loss, versus $1.475 million income previously
• Net assets rose to $10.903 million from $4.253 million
• $10.158 million of unit applications during the year
• Distribution increased to 58.630 cents per unit
• ASX trading began under ZILR in February 2026

Investment losses overwhelm a larger asset base

Ziller Global Fund Active ETF (ASX:ZILR) more than doubled its net assets during the year to 30 June 2026, but the expansion came with a markedly weaker result. The fund reported a $1.770 million comprehensive loss, compared with $1.475 million of comprehensive income in the previous year.

The main drag was a $1.584 million net loss on financial instruments measured at fair value through profit or loss. That reversed a $1.043 million gain a year earlier. Investment income remained modest at $18,000, comprising $6,000 of interest and $12,000 of dividend and distribution income, while total expenses were $208,000.

Applications lift net assets to $10.9 million

Fresh investor applications provided the clearest support for the fund’s balance sheet. Applications totalled $10.158 million, compared with $627,000 in the prior year, while redemptions were $404,000. Net assets attributable to unitholders consequently rose to $10.903 million from $4.253 million.

The increase was not simply a function of market performance. The fund issued 4.647 million units through applications and ended the year with 2.494 million units on issue, after substantial redemptions and the reinvestment of $128,000 in distributions. Its investment portfolio consisted entirely of listed equities valued at $12.135 million at year-end, representing about 95% of total assets.

New structure and higher distribution

The reporting period also marked the fund’s transition into its current listed structure. Perennial Investment Management became responsible entity on 7 October 2025, HSBC Bank Australia replaced Pitcher Partners as administrator in December, the scheme became an Australian registered managed investment fund in January, and units began trading on the ASX as ZILR on 23 February 2026.

Distributions rose to $1.462 million, or 58.630 cents per unit, from $310,000 and 13.276 cents per unit previously. The responsible entity fee remained 1.33% per annum, with $102,057 recognised for the year. The fund also disclosed that key management personnel held 741,803 units at year-end after acquiring 2.472 million and disposing of 1.731 million during the period.

Listed equities leave results exposed to markets

The fund’s own sensitivity analysis illustrates the concentration of its result in market prices. A 5% move in the value of its financial assets was estimated to change net assets and profit or loss by approximately $607,000 in either direction. Currency exposure was also material, with a 5% move in the Australian dollar against the US dollar estimated to affect net assets by $429,000.

KPMG issued an unqualified audit opinion, identifying the valuation and existence of the $12.135 million listed-equity portfolio as the key audit matter. The financial statements report no significant post-year-end events, but they provide no update on portfolio performance or trading liquidity after 30 June. Those are the figures that will determine whether the fund’s larger capital base can translate into stronger operating results rather than simply magnifying market swings.

Bottom Line?

The fund has gained scale and a public-market listing, but its next test is whether portfolio performance can justify that expanded base after the sharp annual investment loss.

Questions in the middle?

• How has the listed-equity portfolio performed since 30 June 2026?
• What level of ASX trading liquidity has ZILR established since its February debut?
• Can future distributions be sustained if investment-market conditions remain volatile?