How GVF’s Discount Capture Strategy Fueled 15.8% NTA Growth in FY2025

Strong Financial Performance Amid Volatile Markets

Staude Capital Global Value Fund Limited (ASX – GVF) has delivered a strong financial performance for the fiscal year ended 30 June 2025, reporting an operating profit before tax of $34.5 million and an operating profit after tax of $24.25 million. The fund’s adjusted pre-tax net tangible assets (NTA) rose by 15.8%, reflecting solid underlying portfolio growth despite a challenging global environment.

Chairman Jonathan Trollip highlighted that global markets experienced robust tailwinds throughout FY2025, with some turbulence linked to US political developments. Nevertheless, GVF’s diversified portfolio, primarily exposed to equity and debt markets, capitalised on these conditions to generate shareholder total returns of 19.2%, aided by a tightening of the discount to NTA which saw shares trade at a slight premium by year-end.

Discount Capture Strategy – The Core Driver of Returns

At the heart of GVF’s performance lies its discount capture strategy, which produced an impressive gross return of 11.1% over the year. This approach involves acquiring securities trading below their intrinsic asset value and unlocking that value over time, a method that has delivered consistent outperformance since the fund’s inception in 2014.

Portfolio Manager Miles Staude noted that this strategy allows GVF to maintain a relatively low-risk investment profile while targeting attractive medium- to long-term returns. The strategy’s resilience also provides a buffer during market downturns, positioning the fund to deliver positive returns in varied market conditions.

Navigating Political and Market Uncertainty

Staude acknowledged the complexity of the current investment landscape, shaped significantly by the second presidency of Donald Trump. The volatility triggered by unexpected tariff announcements and subsequent market reactions underscored the difficulty in separating political noise from substantive policy shifts. Despite these challenges, GVF’s portfolio has benefited from favourable US trade deals and a stabilising market environment.

In Australian dollar terms, global equity and bond markets rose by 17.1% and 11.1% respectively during FY2025, aligning well with GVF’s asset allocation and contributing to its strong adjusted NTA returns.

Dividend Declaration and Outlook

Reflecting confidence in ongoing portfolio performance, GVF declared a fully franked final dividend of 3.3 cents per share, continuing a track record of steady distributions since its 2014 IPO. The company also provided guidance for FY2026 dividends to remain at 3.3 cents per share, fully franked, subject to profit reserves and prudent business considerations.

The dividend reinvestment plan (DRP) remains in place, offering shareholders a mechanism to compound their investment without diluting net tangible assets. Key dates for the FY2025 final dividend include an ex-dividend date of 30 September 2025 and payment scheduled for 12 November 2025.

Looking ahead, GVF’s management remains focused on leveraging its discount capture expertise to navigate ongoing geopolitical and market uncertainties, aiming to sustain attractive returns for shareholders.