RGO fund posts 14.62% return as sustainable assets accelerate

Class RGOS delivers 14.62% total return

Russell Investments Sustainable Global Opportunities Fund (ASX:RGO) finished the year ended 30 June 2026 with a stronger result across its key financial measures, led by a 14.62% total return for the Class RGOS exchange-traded fund. The return comprised distributions and the change in the post-distribution unit price, according to the audited annual report.

The fund’s operating profit attributable to unitholders rose to A$15.563 million from A$9.996 million a year earlier. Most of the increase came from net gains on financial instruments at fair value through profit or loss, which climbed to A$14.797 million from A$8.976 million. That result reflects investment-market performance rather than recurring operating earnings, an important distinction for a portfolio whose assets are predominantly international shares.

Assets and distributions expand

Net assets attributable to unitholders increased to A$123.198 million at 30 June, up from A$88.708 million. Financial assets at fair value rose to A$120.744 million, including A$119.119 million in equity securities; international equities accounted for A$118.733 million of that balance.

Annual distributions more than doubled to A$11.055 million from A$5.772 million. Class RGOS generated a distribution of 203.93 cents per unit, compared with 136.55 cents a year earlier, while Class A distributions rose to 11.42 cents per unit and Class D distributions to 12.60 cents. For Class RGOS, the report records A$3.298 million as payable at year-end.

International exposure drives both return and risk

The fund invests across developed and emerging international markets and uses derivatives for portfolio implementation, risk management and currency hedging. At year-end, its foreign-currency contracts had a net notional exposure of about A$4.681 million, within gross buy and sell positions totalling A$23.644 million.

The report’s sensitivity analysis illustrates how quickly the result can move in the opposite direction. A hypothetical 13% fall in the underlying investments would have reduced operating profit and net assets by A$16.386 million, while the same increase would have added that amount. The analysis is explicitly hypothetical and based on historical risk assumptions, not a forecast.

Sustainable mandate remains unchanged

At least 80% of the fund’s net asset value is intended to be invested in shares and equity-related securities selected under a sustainable strategy. The mandate is aligned with the climate objectives of the Paris Agreement and includes targets covering carbon-emissions reduction and net-zero alignment and engagement. Exclusions apply to areas including controversial weapons, thermal coal, tobacco, gambling and companies judged not to comply with the United Nations Global Compact Principles.

The annual report records changes to the responsible entity’s board, including Jason Edgar’s appointment as managing director and chair and Hemal Shah’s appointment as a director. It also states that no significant events occurred after year-end, and PwC issued an unqualified audit opinion.