Key Highlights

• Regal combines private credit, royalties, water and equities in one trust.

• The aim is returns that do not simply track the share market.

• RF1 is a listed trust, so investors hold units rather than shares.

• Equity Trustees Limited is the responsible entity.

Regal Investment Fund (ASX:RF1) combines private credit, resource royalties, water Assets and equity strategies in one ASX-quoted vehicle, aiming for returns that do not simply track the share market. The mix helped it deliver a net return of 17.32 per cent in FY26, though the same structure brings leverage, Short Selling and hard-to-value assets.

A trust, not a company

RF1 is a listed investment trust, so investors hold units rather than shares. Equity Trustees Limited is the responsible entity, and Regal Partners Funds Management Pty Limited has been investment manager since replacing Regal Funds Management Pty Limited on 12 December 2025. The units were listed on the ASX on 17 June 2019.

The fund describes itself as a multi-strategy alternatives vehicle seeking Risk-adjusted absolute returns over more than five years, with limited correlation to equity markets. The manager can change allocations as conditions shift. The fund may use Derivatives and leverage, and has elected into the attribution managed investment trust regime.

What the fund owns

At 30 September 2026, emerging companies made up 26 per cent of net asset value, private Credit 19 per cent, resources royalties 15 per cent and water 13 per cent. Global long short was 9 per cent, small companies 8 per cent, global Alpha 7 per cent and market neutral 2 per cent.

Exposure is larger than net assets. Total long positions were 119 per cent of net asset value and shorts 26 per cent, for gross exposure of 145 per cent and net exposure of 94 per cent. Non-listed positions were 65 per cent.

The FY26 result

For the year to 30 June 2026, net profit was A$117.9 million, up from A$24.5 million, while total investment income was A$184.2 million. The return compared with 3.89 per cent for the RBA cash rate, the fund's benchmark.

Net tangible assets rose to A$3.53 per unit from A$3.23, and net assets attributable to unitholders were A$735.7 million. Distributions for the year were 25.84 cents per unit, including 13.84 cents payable on 7 September 2026.

Costs were significant. Performance fees were A$20.8 million, investment manager fees A$11.6 million and total expenses A$66.3 million, reflecting the strong year. Transaction fees were A$10.1 million.

Recent performance and the unit price

Over longer periods, the September report showed net returns of 12.70 per cent a year over three years, 6.68 per cent over five years and 16.07 per cent a year since inception on 17 June 2019. Past returns do not predict future ones.

Returns have softened. Private credit and resources royalties contributed positively in September, while Mining equities were the largest detractor.

The fund bought back 5,213,005 units for A$17.6 million in FY26, and extended its buy-back to 22 July 2027.

Units on issue were 208,155,000 at 30 June 2026, down from 213,368,000 a year earlier.

Risks to weigh

The Annual Report identifies market price, currency, interest rate, credit, Liquidity and short-selling risk. It also warns that short positions carry potentially unlimited losses and that margin calls can strain liquidity.

Level 3 assets, which rely on significant unobservable inputs rather than market prices, totalled A$578.8 million, about 55 per cent of financial assets at fair value. Valuing them involves judgement.

On 6 October 2026, Equity Trustees director Russell Beasley resigned, with no reason given.

The fund publishes weekly estimated net Tangible Asset updates and a monthly unitholder report, and pays distributions semi-annually, so unitholders can follow both value and income between annual and half-year results.