GARP ETF expands as profit reaches AUD 9.8 million

Profit lifted by portfolio gains and fund inflows

Global X S&P World ex Australia GARP ETF (ASX:GARP) more than tripled its audited profit to AUD 9.791 million in the year ended 30 June 2026, from AUD 2.906 million a year earlier. The result came as net gains on financial instruments, including foreign exchange movements, reached AUD 8.688 million, compared with AUD 2.676 million in the prior year.

That accounting gain was supported by a much larger fund. Net assets attributable to unitholders reached AUD 140.276 million at 30 June, up from AUD 53.707 million. Applications totalled AUD 115.829 million, while redemptions rose to AUD 30.899 million from AUD 3.314 million, leaving a substantial net increase in capital before investment returns and distributions.

Investment portfolio reaches AUD 147.5 million

The ETF held AUD 147.494 million in financial assets at fair value at year-end, representing 99.61% of total assets. Listed equity securities accounted for AUD 147.349 million, with a further AUD 145,000 held in listed unit trusts. All reported investments sat within Level 1 of the fair value hierarchy, meaning they were based on quoted prices in active markets.

The portfolio is designed to track the S&P World Ex-Australia GARP Index before fees and expenses by holding the shares that make up the index. The report therefore records a favourable year for the fund, but it does not provide a separate measure of index-tracking performance or attribute the result between market movements, currency changes and investor flows.

Distributions rise as unit base expands

Distributions paid and payable increased to AUD 8.178 million, from AUD 583,000 in the previous year. The June distribution was recorded at 70.76 cents per unit, following a 4.07-cent distribution in December; the prior June distribution was 13.16 cents per unit. The June distribution was paid to entitled unitholders on 16 July 2026.

Management fees rose to AUD 371,120 from AUD 49,342, reflecting the larger asset base. The stated fee is 0.30% a year, inclusive of GST and net of applicable reduced input tax credits. Operating expenses totalled AUD 488,000, against AUD 108,000 in the prior period.

Audit highlights valuation and market exposure

Ernst & Young issued an unmodified audit opinion. Its key audit matter was the existence and valuation of investments, which represented nearly all of the fund’s assets. The auditor confirmed holdings against third-party records and assessed the portfolio against independently sourced market prices.

The report also puts a number on the fund’s sensitivity: a 10% move in portfolio prices would have changed net assets by AUD 14.749 million at year-end, while a 10% currency movement would have produced an AUD 14.778 million impact under the disclosed analysis. Those figures are scenarios, not forecasts, and the fund states that future returns may differ from past results.