Heavy redemptions leave both Quay Global Active ETFs sharply smaller

Unhedged fund absorbs sharp investment loss

Quay Global Real Estate Fund (Unhedged) finished the year to 30 June 2026 with a $22.852 million operating loss, reversing a $66.064 million profit a year earlier. The result was driven chiefly by a $37.218 million net loss on financial instruments measured at fair value, compared with a $46.323 million gain in 2025.

The loss was not simply an accounting footnote: listed equity securities fell from $702.167 million to $527.234 million over the year, while net assets attributable to unitholders declined to $523.484 million. The fund still paid $17.156 million in distributions, including 12.4414 cents per Active ETF unit across its December and June distributions.

Currency hedging produces sharply different result

The AUD Hedged fund delivered the more resilient headline result, recording a $22.991 million operating profit against $20.716 million in 2025. Its investment portfolio also suffered a $58.145 million fair-value loss, but that was more than offset by a $63.142 million net foreign exchange gain.

The fund adopted hedge accounting for the first time during the year and used forward contracts across the Canadian dollar, euro, pound sterling and US dollar exposures. Those contracts had a notional value of $1.103 billion at year-end. The filing records $47.420 million of gains from hedging instruments, against a $47.600 million change in the hedged items, leaving $180,000 of hedge ineffectiveness recognised in profit or loss.

ETF launches coincide with heavy redemptions

Both funds launched Active ETF classes during the year, but the new structure arrived alongside a pronounced contraction in unit balances. The Unhedged Active ETF fell from 481.272 million units to 129.757 million, with $287.961 million of redemptions against $161.532 million of applications. The AUD Hedged Active ETF recorded $284.630 million of redemptions and ended with 114.237 million units, down from 692.972 million.

Those flows matter because the funds’ capital can change materially through daily applications and redemptions. The filing says the investment manager reviews flows against underlying-asset liquidity each day, while the responsible entity retains discretion to defer or adjust redemptions in specified circumstances. The report does not identify the reasons behind the redemptions or separate ETF-related flows from broader investor activity.

Distributions rise for hedged ETF class

Despite the divergent investment results, distributions from the AUD Hedged Active ETF rose to $17.926 million, from $8.507 million the previous year. Its total distribution was 14.6396 cents per unit, comprising 5.5507 cents in December and 9.0889 cents in June. The Unhedged Active ETF paid $16.826 million, down from $46.364 million, with its annual distribution falling to 12.4414 cents per unit.

Post-year-end, Bennelong Funds Management’s board also underwent a substantial refresh. Andrew Findlay became director and chairperson on 18 September, joined by Kieran Rabbitt and Aria Zarei, while several former directors departed. Deloitte issued an unqualified audit opinion, identifying valuation of financial assets as the key audit matter.