Source: Kapitales Research

Highlights

• Funds under management increased 12.4% to AU$19.06 billion during the June 2026 quarter, supported by stronger investment returns and positive client inflows.
• FY26 performance fees are expected to range between AU$162 million and AU$167 million, with first-half realised performance fees projected at AU$122 million to AU$127 million.
• The L1 Gold Fund IPO generated AU$428 million in net inflows, while Platinum strategies reported quarterly net outflows of AU$308 million.

Strong Quarter Fuels OptimismL1 Group Limited (ASX: L1G) attracted investor attention after its shares traded at a CMP of AU$1.190 following a gain of 1.3%. The company's latest quarterly update highlighted stronger asset growth, improving investment returns and a notable increase in expected performance fees. The latest quarter reflected a meaningful recovery in business momentum, signalling stronger operating conditions after navigating a challenging market environment earlier in the year. Even so, investors remain focused on whether this positive momentum can continue and support stronger financial performance in the periods ahead.Asset Base Expands on Healthy Investor DemandAs of 30 June 2026, L1 Group's funds under management climbed to AU$19.06 billion, representing quarterly growth of 12.4% after distributions. The increase was driven by stronger market performance together with fresh investor inflows across several investment strategies. The L1 Gold Fund IPO contributed AU$428 million in new capital, while the L1 Long Short and L1 Affiliates businesses also delivered positive net inflows. In contrast, Platinum strategies, including Platinum International, recorded AU$308 million in net outflows, similar to the previous quarter. Across the business, L1 Long Short strategies managed AU$8.874 billion, L1 International held AU$2.732 billion, L1 Gold managed AU$833 million, L1 Affiliates oversaw AU$3.302 billion and Platinum accounted for AU$3.319 billion in assets.Earnings Outlook ImprovesManagement expects realised performance fees for the six months ended 30 June 2026 to be between AU$122 million and AU$127 million. This includes a one-off performance fee of approximately AU$79 million associated with the closure of the L1 Wholesale Gold Fund. For the full FY26 period, performance fees are forecast to reach AU$162 million to AU$167 million, reflecting strong contributions from several investment strategies. Non-controlling interest expense is also expected to increase to between AU$11 million and AU$13 million during FY26.Can the Growth Story Continue?The company anticipates after-tax one-off costs of AU$33 million to AU$36 million during the second half of FY26, mainly related to the Platinum integration and the L1 Gold Fund IPO. L1 Group is scheduled to report its FY26 financial results on 17 August 2026, when investors will receive further updates on earnings, fund flows and business performance. While recent operating metrics point to strengthening fundamentals, the market will be watching closely to determine whether sustained inflows, higher fee generation and successful integration initiatives can support the company's next stage of long-term growth.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise. 

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