Macquarie global equity fund finds a larger stage in FY2026

Profit and Fund Assets Expand Rapidly

Macquarie Core Global Equity Fund (ASX:MQE) increased FY2026 operating profit roughly fourfold to A$21.958 million, up from A$5.479 million a year earlier. The fund’s net assets attributable to unitholders reached A$213.302 million at 30 June 2026, compared with A$61.469 million previously.

That expansion was not simply a measure of investment returns. The fund received A$133.752 million in applications during the year, including A$114.758 million for the Macquarie Core Global Equity Active ETF class and A$18.994 million for the Unquoted Class. Investment gains also contributed: net gains on financial instruments held at fair value through profit or loss rose to A$20.322 million from A$4.862 million.

Equity Portfolio Reaches A$194.8 Million

Financial assets held at fair value increased to A$194.823 million from A$61.328 million. Equity securities accounted for A$194.773 million of the total, while derivatives contributed A$50,000. The portfolio was overwhelmingly valued using quoted market prices, with A$194.818 million classified as level 1 in the fair value hierarchy and only A$5,000 classified as level 2.

The fund also ended the year with A$19.644 million in cash, up sharply from A$637,000, alongside A$1.720 million in margin accounts. Its financial liabilities, excluding the net assets attributable to unitholders, totalled A$3.039 million, including A$2.069 million in distributions payable and A$913,000 in redemptions payable.

Distributions Rise Alongside Performance Fees

The fund paid or accrued A$2.645 million in distributions during FY2026, compared with A$685,000 a year earlier. Distribution per unit rose to 17.99 cents for the Active ETF class from 15.92 cents, while the Unquoted Class paid 18.99 cents per unit, compared with 17.36 cents previously.

Costs increased as the fund grew and generated gains. Management fees rose to A$79,000 from A$17,000, while performance fees increased to A$589,000 from A$44,000. The Active ETF performance fee is set at 20% of cumulative outperformance against the MSCI World ex-Australia ex-Tobacco Net Dividends Reinvested Index, subject to a high watermark.

New Class W Adds a Third Unit Class

The fund introduced the unquoted Class W on 1 December 2025, adding a third unit class alongside the Unquoted Class and Active ETF class. Class W had 101 units valued at A$105 at year-end and carried a management fee of 0.24% from its launch date. The Active ETF management fee remained 0.08%, while no management fee was charged to the original Unquoted Class.

Macquarie Investment Management Australia Limited, the responsible entity, said the fund would continue to be managed under its existing investment objective and strategy. The report does not provide forward earnings guidance or a detailed breakdown of portfolio performance by holding, sector or geography.

Auditor Flags Portfolio Valuation as Key Matter

Ernst & Young issued an unmodified audit opinion. Its key audit matter was the existence and valuation of the investment portfolio, which represented 90% of total assets at year-end. The auditor said it confirmed holdings and cash balances with third parties and assessed investment values against independently sourced market prices.

The report highlights the fund’s sensitivity to market movements: a 10% change in the value of financial instruments at 30 June 2026 would have changed profit and net assets attributable to unitholders by approximately A$20.8 million, all else being equal. The fund also reported exposure to non-Australian currencies, with a 15% movement in the US dollar producing an estimated A$2.402 million impact in either direction under the stated sensitivity analysis.