Conditional Teaminvest sale adds uncertainty after IISV’s investment loss

Investment losses reverse the previous year’s result

The Intelligent Investor Select Value Share Fund (ASX:IISV) lost A$2.988 million in the year ended 30 June 2026, reversing a A$10.850 million profit a year earlier. The fund’s basic and diluted loss was 16.06 cents per unit, compared with earnings of 66.00 cents per unit in 2025.

The swing was overwhelmingly tied to market valuations rather than a collapse in realised trading gains. The fund recorded A$7.622 million of realised gains on financial assets, but that was more than offset by A$10.747 million of unrealised losses, producing a net loss of A$3.125 million on investments. Dividend and distribution income also eased to A$896,000 from A$1.149 million.

Higher distribution amid lower net assets

Despite the accounting loss, the fund declared a A$6.724 million distribution, or 34.11 cents per unit, up from A$4.592 million and 26.41 cents per unit in the prior year. The financial statements show that A$1.067 million of the distribution was reinvested through the distribution reinvestment plan, rather than paid entirely in cash.

Net assets attributable to unitholders fell to A$59.111 million from A$61.012 million. Applications rose to A$13.476 million and exceeded redemptions of A$6.732 million, but those inflows were not enough to offset the investment loss and distributions. The fund held A$56.906 million in listed equities and A$9.263 million in cash at year-end.

Currency hedge remains a material portfolio feature

The fund’s international exposure was partly hedged through forward currency contracts. At 30 June, the stated hedge ratio was approximately 73% of identified US dollar exposure, down from about 84% a year earlier. The contracts had a notional value of A$15.887 million and were recorded as a A$544,000 financial liability at year-end.

Its disclosed sensitivity analysis illustrates the portfolio’s market exposure: a 15% movement in equity prices was estimated to affect operating profit and net assets by A$8.536 million in either direction, while a 10% move in the Australian dollar against material foreign currencies was estimated to produce an impact of A$2.804 million. These are scenario estimates, not forecasts, and the filing notes that actual market movements may be larger or smaller.

Teaminvest transaction remains unfinished

The report also places the fund’s investment management arrangements against a proposed ownership change. InvestSMART Group announced in May that it proposed selling the Intelligent Investor business to Teaminvest Private Group (ASX:TIP). If completed, Intelligent Investor Holdings is expected to remain the fund’s investment manager, while ownership and control of that manager would transfer to Teaminvest.

One condition of the transaction was fulfilled after 30 June, but the report does not identify which condition or provide a completion date. All other conditions remained outstanding when the directors signed the report on 28 September, and the filing expressly states that the transaction may not proceed. The stated intention is to retain the investment team and strategy, but the immediate question is whether the remaining conditions are cleared without changing those arrangements.