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Ophir Asset Management has published an investor update for the Ophir High Conviction Fund, reporting a net asset value (NAV) increase of 0.9% for June 2026. This gain outperformed the benchmark, which declined by 0.3%. The update details the main contributors and detractors to the Fund's performance, along with insights into future strategies and market opportunities.
Key Points
- Ophir Asset Management, ASX ticker: OPH
- Fund's NAV rose by 0.9% in June 2026
- Service Stream was a leading contributor; Generation Development was a major detractor
- Investors should monitor ongoing use of the buy-back facility
Ophir High Conviction Fund's Performance in June 2026
Ophir Asset Management announced that the Ophir High Conviction Fund achieved a net asset value (NAV) increase of 0.9% in June 2026, outperforming its benchmark which dropped 0.3%. This was amid a mixed market backdrop where the ASX 200 gained 0.7% and the ASX Small Ordinaries Index declined by 2.0%. Additionally, the Fund's ASX-listed share price rose significantly by 5.6% during the month.
The Fund's strategy emphasizes identifying Australian small and mid-cap companies with strong potential for earnings growth. Its performance was influenced by an underweight position in the Materials sector, which outperformed over the past year, and an overweight in software stocks that underperformed, prompting adjustments earlier in 2026. Despite these factors, the Fund's earnings beats versus misses during the FY26 reporting season remained consistent with historical trends.
Top Contributors and Detractors to Fund Performance
Service Stream (ASX:SSM) was a top contributor in June 2026. Known for utility, telecommunications, and facility maintenance services, the company’s expansion into defence maintenance is expected to exceed market expectations, driving an 11.8% increase in its share price over the month.
On the other hand, Generation Development (ASX:GDG) was a key detractor, with its share price falling 12.3% due to heightened competition and slower inflows. Despite this decline, Ophir Asset Management remains optimistic about Generation Development’s long-term growth prospects, given its historical positive impact on the Fund.
Discount to Net Tangible Asset Value and Buy-Back Program
In May 2026, the Ophir High Conviction Fund’s share price traded at a discount to its Net Tangible Asset (NTA) per share. Ophir views this as an opportunity to acquire shares at a discounted price, leveraging cyclical market conditions. This aligns with Ophir’s broader investment approach of targeting undervalued stocks within its Funds and personal portfolios.
To take advantage of this discount, Ophir has actively used its buy-back facility, which was extended for an additional 12 months in January 2026. The company remains committed to this strategy as a means to enhance unitholder value and support the Fund’s long-term performance. The buy-back process follows specific guidelines and is employed when market conditions present favorable opportunities.
Market Trends and Outlook
The update from Ophir Asset Management offers insights into market trends impacting the Fund. In June 2026, Australian large-cap growth stocks outperformed value stocks, with the MSCI Australia Growth Index rising 2.9% while the MSCI Australia Value Index declined 1.2%. These dynamics influence the Fund’s sector allocation and stock selection strategies.
Ophir remains focused on uncovering high-growth opportunities within Australia’s small and mid-cap segments, aiming to deliver attractive risk-adjusted returns over the medium to long term. Investors are encouraged to watch for further updates regarding the Fund’s performance and strategic changes as market conditions evolve.
Ophir’s Dedication to Performance and Value Creation
Co-founders and senior portfolio managers Andrew Mitchell and Steven Ng reaffirmed their commitment to identifying and investing in businesses with significant growth potential. The Fund’s approach prioritizes superior earnings growth and value creation through disciplined investment processes.
Ophir’s strategic use of the buy-back facility and focus on undervalued stocks demonstrate its dedication to enhancing Fund performance. By maintaining a strong investment framework and adapting to market shifts, Ophir aims to continue delivering outperformance and value for investors.
Investor Guidance and Strategic Considerations
Investors in the Ophir High Conviction Fund should consider the strategic implications of the latest performance update. The Fund’s ability to outperform its benchmark amid challenging market conditions highlights the strength of its investment approach. Nonetheless, investors should remain aware of risks such as sector-specific challenges and competitive pressures.
Ophir’s proactive portfolio management, including sector exposure adjustments and the buy-back program, underscores its commitment to maximizing unitholder value. As market conditions change, investors may benefit from closely monitoring the Fund’s ongoing performance and strategic initiatives.
