Global X India Nifty 50 ETF (ASX:NDI) swung from a AUD6.913 million profit to a AUD39.988 million loss as the value of its Indian equity portfolio fell sharply. The result was driven chiefly by unrealised mark-to-market losses, while net assets declined despite continued investor applications.
- AUD42.834 million net loss on financial instruments
- AUD46.722 million of the investment loss was unrealised
- Net assets fell to AUD181.103 million from AUD208.895 million
- AUD3.788 million distribution declared, equal to 127.75 cents per unit
- Ernst & Young issued an unmodified audit opinion
Indian equity losses drive AUD40 million deficit
Global X India Nifty 50 ETF (ASX:NDI) has swung deep into the red after a year of falling portfolio values, reporting a AUD39.988 million loss for the year ended 30 June 2026. That compares with a AUD6.913 million profit in the prior year and leaves the ETF’s net assets at AUD181.103 million, down from AUD208.895 million.
The central damage came from financial instruments measured at fair value through profit or loss. NDI recorded a net loss of AUD42.834 million, comprising an AUD46.722 million unrealised loss partly offset by AUD3.888 million in realised gains. The distinction matters: the reported result captures changes in quoted market values at year-end and is not, by itself, evidence that the entire loss was crystallised through selling investments.
Fund remains heavily exposed to listed Indian shares
The ETF held AUD183.629 million in listed equity securities at 30 June, representing 97.07% of total assets and the key audit focus for Ernst & Young. All of those investments were classified as Level 1 assets, meaning they were valued using quoted prices in active markets. The filing does not provide a holding-by-holding attribution of the decline, so it cannot identify which Nifty 50 constituents or market moves accounted for the loss.
NDI is designed to track the NSE Nifty 50 Index before fees and expenses, rather than to protect capital during a weak period for Indian equities. Its disclosed sensitivity analysis illustrates the concentration of the exposure: a 10% move in the portfolio’s price risk would have changed net assets by approximately AUD18.363 million at year-end. Currency movements add another layer, with the fund reporting Indian-rupee exposure of AUD182.527 million after accounting for liabilities and other balances.
Applications could not offset investment losses
Investors continued to put money into the fund, with applications of AUD16.932 million during the year against AUD1.259 million of redemptions. Reinvested distributions added a further AUD311,000. But those inflows were outweighed by the investment loss and AUD3.788 million in distributions paid or payable, leaving the fund with AUD181.103 million in equity at year-end.
The distribution itself was AUD3.788 million, or 127.75 cents per unit, below the prior year’s 133.55 cents. Management fees rose to AUD1.338 million from AUD1.268 million, calculated at 0.69% a year inclusive of GST and net of applicable input-tax credits. Cash and cash equivalents fell to AUD3.784 million after netting a AUD1.071 million bank overdraft, although the directors declared there were reasonable grounds to believe the fund could meet its debts as they fell due.
Audit completed without qualification
Ernst & Young issued an unmodified audit opinion, identifying investment existence and valuation as the key audit matter because the listed portfolio accounted for most of the fund’s assets. The auditor reported no independence breaches, prohibited non-audit services or material misstatement in the other information. The responsible entity also reported no change to the investment strategy and no significant subsequent event after 30 June.
For holders, the next useful comparison is not simply whether NDI returns to profit, but how its unit price and net asset value perform against the Nifty 50 once currency effects and fees are taken into account. The annual report shows the cost of a weak year in headline terms; it does not yet show whether the fund’s tracking performance itself materially diverged from its benchmark.
Bottom Line?
The immediate issue is market exposure, not fund solvency: NDI’s next reported unit value and benchmark tracking will show whether this was simply a difficult year for Indian equities or something more specific to the ETF.
Questions in the middle?
- How did NDI’s total return compare with the NSE Nifty 50 Index after fees and the AUD/INR currency effect?
- Have the fund’s unit price, assets under management and cash position stabilised since 30 June 2026?
- Will future distributions remain at similar levels if portfolio gains and taxable income do not recover?