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Schroder Investment Management Australia Limited has disclosed the notional derivative exposure within the Schroder Global Core Fund – Active ETF (ASX:CORE) as of 30 June 2026. The fund's derivative utilisation stood at 0.23% of net asset value (NAV), excluding derivatives used solely for foreign exchange hedging. This disclosure complies with ASX AQUA Operating Rules requiring active ETF managers to regularly report derivative exposures. For CORE ETF investors, this update indicates that derivative use remains very low relative to the fund’s total size.
Key Points
- Issuer: Schroder Investment Management Australia Limited; ETF ticker: CORE
- Derivative utilisation for the Schroder Global Core Fund – Active ETF reported at 0.23% of NAV as at 30 June 2026
- Disclosure made in accordance with ASX AQUA Operating Rules governing active ETF transparency
- Derivative utilisation figure excludes instruments used exclusively for foreign exchange hedging
- Investors should monitor future quarterly derivative disclosures and any changes in fund strategy affecting derivative use
Understanding the Schroder Global Core Fund’s 0.23% Derivative Utilisation
The Schroder Global Core Fund – Active ETF, trading under ticker CORE on the ASX, reported a derivative utilisation rate of 0.23% of NAV as at 30 June 2026. This figure represents the notional exposure to derivatives held at the end of the reporting period, expressed as a percentage of the fund’s total net asset value.
Notably, this 0.23% excludes derivatives used solely for foreign exchange hedging, focusing the figure on non-currency-hedging instruments. The total derivative exposure including foreign exchange hedging was not disclosed in the update.
ASX AQUA Operating Rules and Derivative Disclosure Requirements for Active ETFs
This disclosure fulfills Schroder’s obligations under the ASX AQUA Operating Rules, which regulate exchange-traded products on the ASX AQUA market—a platform for managed funds, ETFs, and structured products. These rules require active ETF issuers to periodically reveal their notional derivative exposures, enhancing transparency around product risk profiles.
Active ETFs differ from passive index-tracking funds by allowing portfolio managers to actively select investments and use derivatives for risk management, expressing investment views, or enhancing returns. The 0.23% derivative utilisation reported for 30 June 2026 aligns with a modest derivative position relative to the fund’s overall portfolio.
Schroder Global Core Fund’s Investment Strategy and Derivative Usage
Managed by Schroder Investment Management Australia Limited, a subsidiary of the global Schroders group, the Schroder Global Core Fund is positioned as a global core equity fund, typically holding a diversified portfolio of large and mid-cap global equities. Derivatives in such strategies are commonly employed for portfolio efficiency, risk management, or adjusting exposure to specific markets or asset classes.
The low derivative utilisation rate of 0.23% as at 30 June 2026 suggests derivatives form a minimal part of the fund’s positioning. Whether this reflects a deliberate portfolio management strategy, prevailing market conditions, or the fund’s usual operating range was not detailed. Investors seeking further insight are advised to consult the fund’s product disclosure statement on the Schroders Australia website.
Significance of NAV-Based Derivative Exposure Calculation for CORE Investors
The 0.23% figure is calculated by expressing the notional derivative exposure as a percentage of NAV, a standard industry practice in Australia. NAV represents the total value of the fund’s assets minus liabilities, reflecting the per-unit value multiplied by units outstanding. This metric helps investors contextualize derivative exposure relative to the fund’s size.
A 0.23% utilisation indicates derivatives constitute a very small fraction of the fund’s NAV, generally considered low and potentially reassuring for investors wary of significant derivative risk. However, notional exposure does not directly equate to economic risk, which depends on the type, direction, and offsetting effects of derivatives within the portfolio.
Regulatory Compliance and Fund Governance by Schroder Investment Management Australia
Schroder Investment Management Australia Limited operates under Australian Financial Services Licence (AFSL 226473) with ABN 22 000 443 274. As the Australian arm of Schroders plc, a London-based global asset manager, it manages a broad range of institutional and retail mandates.
This derivative utilisation disclosure, dated 1 July 2026, demonstrates Schroders’ compliance with Australian regulations for active ETF issuers, providing timely updates following the 30 June 2026 reporting date. Investors with inquiries are encouraged to contact Schroder Client Services at 1300 136 471.
Contextualising the 0.23% Derivative Exposure Within the Active ETF Market
Although prior period comparisons were not provided, the 0.23% utilisation is consistent with a global core equity fund using derivatives sparingly. Active ETFs employing derivatives extensively—such as absolute return, long-short, or leveraged strategies—may report utilisation rates above 1%, sometimes reaching double digits.
This low figure aligns with expectations for a broadly diversified global equity strategy with limited derivative use. Derivative utilisation can vary over time due to market conditions, rebalancing, and tactical portfolio decisions. Investors should track future disclosures to identify any shifts in derivative strategy.
Implications of the 30 June 2026 Reporting Date for CORE Investors
The 30 June 2026 date coincides with the end of the Australian financial year, a period when fund managers often conduct portfolio reviews and rebalancing to align holdings with investment objectives and risk parameters. Derivative positions at year-end may receive particular attention for portfolio management and tax reporting.
This reporting date offers CORE ETF investors a year-end snapshot of the fund’s derivative exposure, useful when considered alongside other year-end disclosures such as distributions, NAV updates, and portfolio holdings, if separately released. The company update did not mention any concurrent disclosures.
Accessing Additional Information on the Schroder Global Core Fund
Investors are directed to the product disclosure statement (PDS) for comprehensive details on the fund’s objectives, strategy, risks, and fees. The PDS is available at www.schroders.com.au. It serves as the primary legal document governing the fund and should be reviewed prior to investing or continuing to hold interests.
The company update includes a standard disclaimer that the information is general and does not consider individual circumstances. Investors are advised to seek independent financial advice before making investment decisions regarding the CORE ETF or other managed products. The disclosure’s immediate impact on share price was not evident, as such derivative utilisation reports are routine compliance communications rather than market-moving events.
Future Disclosure Requirements and Investor Considerations for CORE
Under ASX AQUA Operating Rules, Schroder must continue periodic derivative utilisation disclosures for the Schroder Global Core Fund. The next reporting period will enable investors to compare derivative exposure against the 0.23% reported for 30 June 2026. Significant changes could indicate shifts in portfolio manager tactics or market conditions.
Beyond derivative data, CORE investors should monitor NAV updates, distribution announcements, and portfolio commentary from Schroders to understand the fund’s positioning within global equity markets. As an active ETF, performance and portfolio composition reflect ongoing decisions by Schroders’ portfolio management team, making regular engagement with fund communications important for investors.
