Tower leads a mixed week for Australian listed funds

• Tower rose 3.79% after lifting FY26 underlying profit guidance to $69 million-$79 million.
• GLS fell 3.32% despite raising A$100.9 million from institutional investors.
• Australian Ethical reported a 29% rise in shareholder profit and record funds under management.
• Savana US Small Caps fell 7.65% in September as higher bond yields hurt smaller companies.
• Clime Capital posted stronger profit, but its auditor could not verify $36.2 million of unlisted valuations.

Tower Limited (ASX:TWR) was the strongest available weekly mover, rising 3.79%. The insurer said large event claims were about $25 million, well below the $45 million allowance in its forecast. That leaves about $14 million after tax that can lift the year’s profit. Customer numbers also rose 8% to 345,000.

GLS fell 3.32%, even after institutional investors supplied A$100.9 million. The result means L1 Group’s A$70.1 million entitlement was placed with new shareholders. Retail investors can still buy one new share for every two held at A$1.76 from 13 October. The offer is not guaranteed, so the final amount raised depends on retail participation.

Australian Ethical Investment (ASX:AEF) slipped 2.61% for the week. Its annual result was stronger than the share price suggested. Profit rose 29% to $25.7 million, while funds under management reached a record $14.5 billion. Investors may still be weighing weak results from Australian shares and smaller growth companies, as well as work to fix an APRA licence condition.

The weekly leaderboard also includes the remaining listed funds and financial companies. Their results show why a higher profit figure does not always bring buyers. Investors may instead focus on the quality of assets, future payments or whether a company can repeat the result.

Fund managers balance income and risk

Clime Capital (ASX:CAM) lifted after-tax profit to $10.3 million from $3.1 million. It kept its ordinary dividends at 5.4 cents a share and added a 0.5 cent special payment. KPMG, its auditor, could not obtain enough evidence to confirm $36.2 million of unlisted unit trust values. That means investors cannot yet rely on the auditor’s full confirmation of those assets and related income.

WCM Global Growth (ASX:WQG) increased its final dividend to 2.35 cents a share, with tax credits attached. Its assets rose 31% to $604.1 million after an $84.8 million capital raising. The portfolio returned 16.58%, below its 18.26% benchmark. In plain terms, the fund made money but did not keep pace with the comparison index.

Katana Capital (ASX:KAT) declared a fully franked special dividend of 5.0 cents a share. The company said its tax-credit balance may allow more payments later. Shares trade without the dividend from 13 October, and payment is due on 30 October. Solaris Australian Equity Income Plus (ASX:SET) reported a flat portfolio return that beat its benchmark’s 1.01% fall. However, one dividend note conflicts with the wider report and needs clarification.

Higher US yields hurt smaller companies

Savana US Small Caps Active ETF (ASX:SVN) fell 7.65% in September, compared with a 2.73% fall for the S&P SmallCap 600. Only five of its 42 holdings rose. The US 10-year government bond yield climbed to 5.29%, its highest level since 2007. Higher yields can make smaller companies less attractive because borrowing costs rise and future profits are worth less today.

The fund also avoided some of the strongest semiconductor stocks tied to artificial intelligence. That choice protected it from some expensive shares, but it also meant missing a large part of the month’s gains. One investment, Everforth, rose about 52% between the fund’s purchase in May and its sale in September.

Corporate actions set the next dates

ASX suspended trading in CommBank PERLS XIII notes (ASX:CBAPJ) before their expected redemption. The notes will be removed from trading after Commonwealth Bank announces the redemption and files the required notice. The exchange notice did not give the final price or date.

Investors will next watch GLS’s retail offer from 13 October, Katana’s ex-dividend date on the same day and its payment on 30 October. Tower is due to publish its final FY26 results on 26 November. Those events will show whether the early profit gains can be converted into cash returns and whether the listed funds can support their promised payments.

Bottom Line?

The next week will centre on GLS’s retail entitlement offer, which opens on 13 October. Katana’s special dividend also becomes effective on that date, while Tower’s full FY26 result is scheduled for 26 November. Investors still need final details on CommBank’s PERLS XIII redemption and clarification of Solaris’s dividend figures.

Questions in the middle?

• Will retail investors provide enough demand for GLS to raise the remaining A$381.7 million?
• Can Tower keep its higher profit forecast after customer remediation costs are included?
• Will Clime Capital provide enough evidence to resolve the auditor’s concerns about its unlisted valuations?