Bell Global Emerging Companies Fund Reports 0.59% Tracking Error for June 2026 Quarter

About Bell Global Emerging Companies Fund and Its Active Investment Approach

Listed on the ASX under ticker B1SM, Bell Global Emerging Companies Fund (Class A) Active ETF is managed by Bell Asset Management Limited, an Australian financial services firm licensed under AFSL 231091. The Trust Company (RE Services) Limited, holding AFSL 235150, functions as the responsible entity overseeing the fund's compliance and operations. This governance framework ensures adherence to Australian financial services regulations and robust investor protections.

The fund employs an active management strategy targeting emerging companies worldwide, aiming to outperform or differentiate from its benchmark index rather than simply tracking it passively. The quarterly tracking disclosure enables investors to evaluate how closely the fund’s active management aligns with its Market Portfolio Index benchmark, offering transparency into the effectiveness of the fund’s investment decisions.

June 2026 Quarterly Tracking Error Analysis and Its Significance

For the June 2026 quarter, the fund reported a tracking error of 0.59 percent, indicating the extent of deviation between the fund’s returns and those of its Market Portfolio Index benchmark. Tracking error is a vital metric for active ETFs, quantifying the variability of fund performance relative to the benchmark. A 0.59 percent tracking error reflects the combined influence of the fund’s active investment choices, fees, and operational expenses compared to index changes during the period.

This metric helps investors assess the consistency and impact of the fund manager’s active decisions and whether these contribute positively or negatively relative to the benchmark. While tracking error provides insight into performance dispersion, a comprehensive evaluation would also consider absolute returns and fee structures to determine the overall value added by active management.

Effect of Limited Trading Days in March 2026 and Data Inclusion Strategy

A key aspect of this disclosure is the fund’s limited trading history during the March 2026 quarter, as it was quoted on the ASX for only two days. To ensure complete quarterly tracking data, the fund’s managers included Market Portfolio Index tracking data for 30 and 31 March 2026 within the June 2026 quarterly report, rather than treating March as a partial period. This approach maintains continuity in performance reporting despite the fund’s late-quarter market debut.

The brief March trading activity reflects the fund’s recent launch on the ASX. New ETFs typically undergo extensive preparation, including regulatory approvals and market infrastructure setup, before trading commences. The fund’s commencement in late March 2026 and subsequent tracking disclosures demonstrate successful navigation of the listing process and establishment of active management and reporting within a short timeframe.

Bell Asset Management’s Investment Management and Operational Role

Bell Asset Management Limited (AFSL 231091) serves as the investment manager responsible for the fund’s daily portfolio management, including security selection and tactical positioning. The investment team actively determines which emerging market securities to hold, their allocations, and timing of portfolio adjustments, aiming to outperform the benchmark through superior stock picking and sector allocation.

The investment manager’s effectiveness is directly measured by the quarterly disclosed tracking error, linking Bell Asset Management’s decisions to publicly reported performance. This transparency enables investors to evaluate whether the active management justifies the fund’s fees and approach. The investment manager is accountable for explaining any performance deviations, underscoring the importance of clear tracking disclosures for investor confidence.

The Trust Company’s Oversight as Responsible Entity

The Trust Company (RE Services) Limited (ACN 45 003 278 831, AFSL 235150) acts as the responsible entity for the Bell Global Emerging Companies Fund. It holds ultimate legal responsibility for fund operations, investor asset protection, regulatory compliance, and ensuring adherence to the fund’s constitutional documents and Product Disclosure Statement. The responsible entity supervises the investment manager’s activities, monitors compliance with investment mandates, and safeguards fund assets in line with Australian financial services laws.

This governance model, separating investment management and responsible entity functions, is standard for Australian managed funds and ETFs. It creates checks and balances by maintaining the responsible entity’s independence from daily investment decisions, thereby reducing conflicts of interest and enhancing investor protections.

Regulatory Disclosure Requirements and Transparency for Active ETFs

The quarterly Market Portfolio Index tracking disclosure complies with Australian Securities Exchange (ASX) and Australian Securities and Investments Commission (ASIC) regulations for active ETFs. These requirements ensure investors receive regular, transparent reporting on fund performance relative to benchmarks, enabling assessment of active management value and maintaining market transparency.

For the Bell Global Emerging Companies Fund, quarterly tracking disclosures serve as a vital communication tool, allowing investors and prospective clients to monitor active management effectiveness. The inclusion of tracking error data alongside notes on listing timeline nuances reflects a commitment to thorough and transparent reporting. Investors should incorporate these disclosures alongside fee and absolute return analyses when evaluating the fund’s suitability.

Investor Documentation and Product Disclosure Guidance

Investors are advised to carefully consider the fund’s appropriateness for their financial circumstances before investing. The fund’s Product Disclosure Statement and Target Market Determination are accessible on Bell Asset Management’s website at https://bellasset.com.au. These documents detail the fund’s investment objectives, risk profile, fees, and target investor segments, serving as essential resources for informed decision-making.

The Target Market Determination outlines the investor categories for whom the fund is designed and appropriate distribution conditions. Financial advisers and distributors use this document to ensure recommendations align with the fund’s target market. Reviewing these documents alongside quarterly tracking reports provides a comprehensive understanding of the fund’s strategy, risks, and suitability.

Focus on Emerging Markets and Investment Universe

The Bell Global Emerging Companies Fund concentrates on emerging market companies worldwide, offering exposure to growth opportunities in developing economies beyond established markets like the US, Europe, and Australia. Emerging markets present distinct growth prospects, regulatory environments, and risk profiles compared to developed markets. By targeting smaller and mid-sized emerging companies, the fund seeks higher growth potential than larger multinational corporations.

Investing in emerging markets involves unique risks, including higher volatility, currency fluctuations impacting Australian investors, and elevated political and regulatory uncertainties. The fund’s active management approach aims to mitigate these risks while capturing growth opportunities. Quarterly tracking data provides a key metric for evaluating the investment manager’s effectiveness within this complex environment.

ASX Listing and Trading Commencement Details

The Bell Global Emerging Companies Fund (Class A) Active ETF was listed on the ASX in March 2026, with trading beginning in late March. Given its recent launch, the fund has a limited performance history for long-term evaluation. This new ETF offers Australian investors a fresh option for emerging markets exposure through an actively managed exchange-traded fund structure. Ongoing quarterly disclosures will enhance performance transparency as the fund matures.

The fund’s swift progression from regulatory approval to ASX listing, trading commencement, and performance reporting highlights successful execution of the launch process. Coordinating regulatory, legal, operational, and marketing efforts is critical for timely market entry. As the fund continues trading and reporting, investors will gain greater insight into whether the active management strategy delivers value consistent with fees and objectives since inception.