Growth Opportunities Fund
What happened during the period?
The Fund delivered a return of 2.3% (net of fees) for the three months to 30 September 2026. Since its inception in December 2024, the Fund has achieved a 17.6% return (gross of fees). The Fund has continued to build a diversified portfolio of private market investments across its key thematics including decarbonisation, circular economy, digitalisation, urbanisation and changing demographics. At period end, the Fund had 18 investments including 17 private market investments representing over 60 underlying assets, providing diversified exposure across infrastructure, real assets and growth-oriented businesses.
Global markets navigated a challenging backdrop during the September quarter as investors reassessed the outlook for inflation, interest rates and economic growth. Long-dated government bond yields moved higher across major developed markets, reflecting persistent inflationary pressures, elevated fiscal deficits and continued central bank caution. While geopolitical tensions and higher energy prices contributed to volatility, equity markets remained relatively resilient, supported by strong earnings from technology and AI-related businesses and ongoing investment in digital infrastructure. In Australia, economic growth proved more resilient than expected, supported by consumer spending and business investment, although inflation remained above target and markets increased expectations for further RBA tightening. Through this environment, private markets continued to demonstrate resilience globally, although fundraising and transaction activity remain below the peaks experienced during the low-interest-rate environment of 2021-22. Our underlying managers continue to remain selective, with infrastructure, renewable energy, data centres and essential service businesses continuing to attract significant capital, underpinned by long-duration cashflows, inflation-linked revenue characteristics and strong demand driven by decarbonisation and digitalisation trends.
The private market assets in the portfolio performed well, with strong positive June valuations coming in over the quarter, including Repurpose It, Gigacomm, and the IFM Growth Partners Fund. Repurpose It continued to outperform budget, giving the independent valuer greater confidence in its future cash flows. This supported a lower discount rate, reflecting reduced investment risk and increasing the present value of the business’s expected cash flows. Likewise, Gigacomm also saw valuation improvement on the back of a lowering of the discount rate applied, reflecting de-risking of the business cash flow assumptions, successful capital raising, and the acquisition of DG-Tek, providing greater scale and strategic and operational synergies. The IFM Growth Partners Fund investment in Novigi was also written up during the quarter, reflecting an increase in the market multiple and a premium applied to market comparable companies based on the business’s high relative rate of demonstrated and forecast profit growth.
As we detail below, during the quarter the Fund made an investment commitment to Kinetic. The Fund’s investment in Kinetic was made alongside TPG Rise Climate, a global impact investor focused on accelerating decarbonisation at scale. The investment supports one of the world's largest bus operators in expanding its zero-emission fleet, helping drive the electrification of public transport networks and reduce transport-related emissions across the markets in which Kinetic operates.
Positive performance across our private market investments was partially offset by negative performance in the Global Listed Infrastructure portfolio, with rising oil prices, tighter monetary policy and higher long-term bond yields weighing on listed infrastructure. While performance for the quarter was negative, the ethically-screened listed infrastructure portfolio outperformed its benchmark by 2.4%.
While market uncertainty and elevated interest rates may continue to drive periods of volatility, we believe they are also creating compelling opportunities across private markets. The Fund is well positioned to selectively deploy capital into businesses and assets aligned with our impact themes, with a strong pipeline supporting continued portfolio diversification and long-term value creation. We continue to assess the impact of a higher rate environment (predominantly a higher medium term yield curve) on new investment opportunities and are focused on investments or sectors which have resilient business models, against the backdrop of any potential deteriorating economic factors.
Impact
The Fund has released its inaugural annual impact report, highlighting the positive environmental and social outcomes delivered across the portfolio. During the year, the portfolio contributed to 4.2GW of additional renewable energy generation and storage capacity, treated approximately 874,000 tonnes of waste with a 99.8% landfill avoidance rate, supported 284MW of data centre capacity powered by 100% renewable energy, added 200 electric vehicles to an Indian EV fleet platform, and expanded aged care capacity by 557 beds. The report highlights the Fund's diversified portfolio of over 60+ underlying assets across its impact thematics of decarbonisation, circular economy, urbanisation, digitalisation and changing demographic. A further version of the report including detailed case studies is available to investors and prospective investors through the Fund's data room.
Growth Opportunities Fund Performance (net of fees)
As at 30 September 2026*
| Fund | Benchmark | Excess returns | Strategy** | |
|---|---|---|---|---|
| 1 Month | -0.1% | 0.8% | -0.9% | 0.0% |
| 3 Months | 2.3% | 2.4% | -0.2% | 2.5% |
| 6 Months | 3.2% | 4.9% | -1.7% | 3.3% |
| 1 Year | - | - | - | 21.5% |
| Since Inception P.A. | 3.2% | 4.9% | -1.7% | 17.6% |
Wholesale Class Inception date: 31/03/2026. Past Performance is not a reliable indicator of future performance.
**Strategy was established in December 2024. Strategy performance is gross of management and performance fees.
Portfolio Summary
| Unlisted Investments | Net Asset Value (NAV) | Gross performance since inception* | Assets | Net Asset Value (NAV) + undrawn commitments | Asset realisations |
|---|---|---|---|---|---|
| 18 | $614m | 17.6% | 60+ | $739m | 1 |
* Strategy was established December 2024. Performance is gross of management and performance fees. Past Performance is not a reliable indicator of future performance.
New Investments / Divestments
During the quarter the Fund made one new investment, as well as an existing investment completing a bolt-on acquisition, while the exit of Aligned Data Centers reached financial close in July:
- During the quarter, the Fund made a commitment in Kinetic through a continuation vehicle established by Foresight. Kinetic is a global mass-transit operator with more than 12,000 buses, and 470 trains, including over 1,900+ zero-emission buses, providing exposure to growing public-transport demand and the transition toward lower-emissions transport. The investment is expected to close towards the end of the 2026 calendar year, subject to customary closing conditions.
- Portfolio company Gigacomm completed the acquisition of Melbourne-based fibre-network provider DGtek, including its Pineapple Net retail brand. The acquisition added approximately 28,000 premises to Gigacomm’s existing network of around 55,000, expanding its Victorian footprint and combined network to approximately 83,000 premises, bringing both scale and strategic and operational synergies to the Gigacomm business.
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The previously announced sale of Aligned Data Centers reached financial close in July, with the Fund receiving approximately 70% of expected proceeds, with the remaining 30% deferred until the third and fourth anniversaries of closing. Alongside the Aligned transaction, the investment vehicle completed the sale of its minority interest in Canadian data-centre platform QScale. The vehicle retains a 10% interest in a Pennsylvania data-centre development supported by a long-term hyperscale customer contract. This retained interest provides the potential for additional proceeds if the development performs successfully (effectively operating as an earn-out on the sale transaction).
Repurpose It continued to outperform budget, strengthening the independent valuer's confidence in its future cash flows. That confidence supported a lower discount rate, reducing perceived investment risk and lifting the present value of the business.
Portfolio holding weights
| Investment | Weighting (%) |
|---|---|
| Morrison Growth Infrastructure Fund | 16% |
| Southern Water | 11% |
| Octopus Australia Sustainable Investments Fund | 10% |
| IFM Australian Infrastructure Fund | 8% |
| MAFCA | 8% |
| Global Listed Infrastructure | 7% |
| IFM Growth Partners | 6% |
| Repurpose It | 6% |
| PEP Secure Assets Fund II | 5% |
| For Purpose Aged Care Australia | 4% |
| Octopus Energy | 4% |
| Neoen | 4% |
| GigaComm | 3% |
| Macquarie Green Energy Climate Opportunities Fund | 3% |
| Aligned Data Centers | 2% |
| Xpansiv | 2% |
| Vertelo | 0% |
| Kinetic | - |
| Cash and cash equivalents | 0% |
Case Study: Gigacomm
Gigacomm builds, owns and operates last-mile fibre infrastructure to deliver high-speed internet services to customers across Melbourne, Sydney and southeast Queensland. It primarily targets existing (and in most cases, older) apartments that are underserved by the National Broadband Network (NBN). Gigacomm combines leased digital infrastructure with its own fibre access network, operating independently of the NBN and extending high-speed connectivity into apartment buildings and premises.
While the NBN provides high-speed broadband across much of metropolitan Australia, many older apartment buildings remain served by legacy fibre-to-the-building, curb or node technologies, which rely on copper for part of the connection to individual premises. This can constrain the speeds available to residents.
Australia lags comparable developed markets, such as New Zealand and the United Kingdom, in the availability and adoption of high-speed fixed broadband, reflecting its reliance on legacy copper and demand for providers such as Gigacomm.
Gigacomm has a best-in-class solution for this ‘last mile’ of the connection, which enables residents of these apartments to access higher-speed internet. By expanding access to affordable, high-speed internet for these apartments, we are supporting digital inclusion by enabling improved access to employment, education and other essential services. In FY25, the company also launched the Gigacomm Access Program (GAP) to expand access to high-speed internet for underserved households. As part of this program, Gigacomm has partnered with Evolve Housing, one of Australia’s largest community housing providers, to provide social housing tenants in Sydney and Melbourne with 100 Mbps download speeds and free internet installation.
The Fund made its first investment in Gigacomm in November 2025 alongside lead sponsor Palisade Impact and Macquarie Capital. For the Fund, this is a growth equity investment that aligns with the Fund's Digitalisation thematic.
Since our investment, the business has made positive progress. Palisade Impact, including through its Chair appointee Paul Evans, has supported a number of changes within the business, including a refreshed Board and the appointment of Jason Cooper as CEO. Jason and his team have delivered strong operational results in a short period, established a clear strategic plan and completed the acquisition of competitor DGtek. These initiatives have contributed to the growth of the network from approximately 50,000 ready-to-connect (RTC) premises in April 2025 to approximately 85,000 premises as of September 2026. Gigacomm continues to focus on expanding its addressable footprint, growing the wholesale business and establishing partnerships to support its next phase of growth.
From an impact perspective, we track the number of RTC premises and the number of customers served with high-speed internet. We also track the number of customers and sites connected under the Gigacomm Access program (GAP), which is aimed at serving underserved households. As at September 2026, Gigacomm provides affordable, high-speed services via the GAP to 33 premises.
Investments in the portfolio
Morrison Growth Infrastructure Fund (MGIF): MGIF is a closed‑ended, unlisted infrastructure fund managed by Morrison & Co that invests in essential infrastructure businesses across developed OECD markets, with a primary focus on Australia. The portfolio spans sectors including renewable energy, utilities, digital connectivity, healthcare, circular economy and natural capital.
Octopus Australia Sustainable Investments Fund (OASIS): A renewable energy fund managed by Octopus Investments that provides exposure to a diversified portfolio of Australian solar, wind and battery storage assets spanning operational, construction and development stage projects.
Southern Water: A regulated UK water and wastewater utility serving more than 4.7 million customers across Southern England. The company owns and operates extensive water and wastewater infrastructure networks and is undertaking a significant investment program to improve asset resilience, environmental performance and water security, supported by inflation-linked revenues under the UK's regulated utility framework.
IFM Australian Infrastructure Fund: AIF is an open‑ended core infrastructure fund managed by IFM Investors, with a diversified portfolio of mature Australian infrastructure assets. The fund holds interests across airports, ports, electricity distribution, toll roads and social infrastructure.
Macquarie Agriculture Fund – Crop Australia (MAFCA): An Australian agricultural fund managed by Macquarie that owns a diversified portfolio of 23 cropping assets across key agricultural regions. The portfolio includes a mix of row cropping and permanent cropping assets across Western Australia, New South Wales, South Australia and Queensland, spanning grains, oilseeds, cotton and horticultural crops through a combination of owned-and-operated and owned-and-leased farmland.
Aligned Data Centers: Aligned Data Centers is a digital infrastructure platform that designs, develops and operates hyperscale and enterprise data centres across North and South America. The business focuses on high‑density, scalable facilities supporting cloud computing and artificial intelligence workloads.
Repurpose It: Repurpose It is an Australian resource recovery business specialising in the processing of construction, demolition and organic waste to produce repurposed materials. The company operates advanced facilities in Victoria, including large‑scale soil washing and organics processing plants.
IFM Growth Partners Fund II: A private equity fund managed by IFM Investors that focuses on software, technology-enabled services and healthcare businesses, providing the Fund with additional exposure to growth-oriented private market opportunities.
PEP Secure Assets Fund II (PEP SAF II): A mid-market infrastructure fund managed by Pacific Equity Partners that owns four infrastructure and infrastructure-like platforms across residential land lease communities, waste-to-energy, aged care and data centres in Australia and New Zealand. The strategy targets businesses with secure or contracted cashflows and opportunities for operational improvement and growth.
Octopus Energy: Octopus Energy is a global energy and technology platform operating across energy retail, renewable generation and energy transition services. The business also owns the Kraken technology platform, which supports energy system management and utility operations.
For Purpose Aged Care Australia (FPACA): FPACA is a not‑for‑profit aged care operator that owns and operates a portfolio of Australian residential aged care facilities. The investment is held via subordinated Social Capital Notes secured against the underlying operating business and property assets.
Neoen: Neoen is a global renewable energy platform that develops, owns and operates large‑scale solar, onshore wind and battery storage projects. Its portfolio spans multiple jurisdictions, including Australia, France and the Nordic region.
Gigacomm: Gigacomm is an unlisted Australian digital infrastructure business that owns and operates last‑mile fibre broadband networks in multi‑dwelling residential apartment buildings. The company focuses on upgrading older, high‑density buildings in metropolitan areas.
Macquarie Green Energy Climate Opportunities Fund (MGECO): MGECO is a global, unlisted infrastructure fund managed by Macquarie that invests in renewable energy development and operating platforms. The fund focuses on established technologies such as offshore wind, onshore wind and solar across North America, Europe and Asia Pacific.
Xpansiv: A leading environmental commodities marketplace that facilitates the trading of carbon credits, renewable energy certificates and other sustainability-linked environmental products.
Vertelo: Vertelo is an unlisted fleet electrification platform focused on electric buses and charging infrastructure in India. The business acquires electric vehicles and related infrastructure and leases them to public and private transport operators under long‑term arrangements.
Kinetic: Kinetic is a leading global mass-transit operator and one of the largest bus operators in Australasia. Kinetic delivers essential public transport services through a network of more than 300 contracts, operating over 12,000 buses and 470 trains across Australia, New Zealand, the United Kingdom, Europe and Asia, with a strong focus on fleet electrification and zero-emission transport.
Global Listed Infrastructure: Global Listed Infrastructure Portfolio (GLI) is a liquid, listed portfolio of global infrastructure and infrastructure‑like companies across developed markets, providing liquidity and listed infrastructure exposure to the portfolio. The GLI portfolio is systematically constructed to track the FTSE Developed Core Infrastructure 50/50 Index (AUD‑hedged) and is diversified across regions and infrastructure subsectors.
This information has been prepared by Australian Ethical Investment Ltd (ABN 47 003 188 930, AFSL 229949) (Australian Ethical) in its capacity as trustee of the Australian Ethical Growth Opportunities Fund (ABN 82 679 220 828) (Fund) and is intended solely for Wholesale Clients as defined in sections 761G and 761GA of the Corporations Act 2001 (Cth) and, for New Zealand resident investors, by Wholesale Clients who are also wholesale investors as defined by clause 3(2) of Schedule 1 to the Financial Markets Conduct Act 2013 (NZ).
This information is general in nature and is not intended to provide you with financial advice and does not take account of your individual investment objectives, financial situation or needs. The information is provided in summary form and may be subject to qualifications. Prospective investors should rely upon their own enquiries and seek such professional advice as they consider appropriate before deciding whether to invest in the Fund. Past performance is not a reliable indicator of future performance.
Before acting on the information, visit australianethical.com.au for our Financial Services Guide (FSG) and the Fund’s Information Memorandum (IM) to consider its appropriateness to your circumstances. You should read the IM in full entirety and consider consulting with a financial adviser or tax adviser. An investment in the Fund should be considered in the context of the risks outlined in the IM.
The Fund aims to generate positive environmental and/or social impact alongside financial returns, guided by Australian Ethical impact framework and methodology. There are varied market and regulatory definitions of ‘impact investment’, and different frameworks and funds classify and measure impact differently. Prospective investors should conduct their own due diligence and form their own view as to whether the framework and methodology used aligns with their individual objectives, values, and requirements in relation to impact outcomes. Impact related data used in the Fund’s investment process and reporting may be derived from investees and other third-party sources and methodologies. Although Australian Ethical uses sources and methods it believes to be credible, measurement of impact is complex and often involves estimates and assumptions. Australian Ethical accepts no responsibility for the data and makes no representation or warranty as to its accuracy or completeness or fitness for a particular purpose. The Fund’s impact objectives are subject to risk and uncertainties, and actual outcomes may differ materially from those anticipated.
Investing ethically and sustainably means that the investment universe will generally be more limited than non-ethical, non-sustainable portfolios in similar asset classes. This means that the portfolio(s) may not have exposure to specific assets which over or underperform over the investment cycle, and so the returns and volatility of the portfolio(s) may be higher or lower than non-ethical, non-sustainable portfolios over all investment time frames.
Our investment restrictions include thresholds and other tolerances that vary depending on the investment. We apply both qualitative and quantitative analysis when making investment decisions and may invest where we believe the positive aspects outweigh the negative. From time to time, we may use derivatives that provide temporary exposure to a broad market index, such as the S&P/ASX 200. This does not involve direct investment in, or ownership of, the underlying companies. For more information, please read our Ethical Guide.
* Total returns are calculated using the sell (exit) price, net of management fees and gross of tax as if distributions of income have been reinvested at the actual distribution reinvestment price. The actual returns received by an investor will depend on the timing, buy and exit prices of individual transactions. Return of capital and the performance of your investment in the fund are not guaranteed. Past performance is not a reliable indicator of future performance. Figures showing a period of less than one year have not been adjusted to show an annual total return. Figures for periods of greater than one year are on a per annum compound basis. The current benchmark may not have been the benchmark over all periods shown in the above chart and tables. The calculation of the benchmark performance links the performance of previous benchmarks and the current benchmark over the relevant time periods.
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The information contained on this page is believed to be accurate at the time of compilation.