Key Highlights

  • L1 Group’s total funds under management increased 12.4% during the June 2026 quarter to $19.1 billion post distributions, supported by investment performance recovery and the April 2026 L1 Gold Fund IPO.
  • Realised performance fees for the six months ended 30 June 2026 are expected to total $122–127 million, including a one-off fee of approximately $79 million from closure of the L1 Wholesale Gold Fund.
  • Full-year FY26 performance fees are expected to total $162–167 million, with the remaining fees reflecting the L1 Capital Catalyst Fund’s performance alongside contributions from the L1 Global Opportunities Fund.
  • L1 Group expects to incur $33–36 million in after-tax one-off costs in H2 FY26, primarily related to the Platinum International integration and the L1 Gold Fund IPO.

L1 Group Limited (ASX:L1G) released its June 2026 funds under management and FY26 performance fee update on 15 July, providing investors with interim financial metrics ahead of the full-year results scheduled for 17 August 2026. The update covers a quarter in which FUM grew materially, the L1 Gold Fund completed its ASX IPO, and investment performance recovered from the volatility experienced in March following the escalation of the Iran conflict.

FUM Growth: $19.1 Billion at Quarter End

L1 Group’s total funds under management reached $19.1 billion at 30 June 2026, up 12.4% from $17.0 billion at 31 March 2026 on a post-distribution basis. The increase over the quarter reflects several concurrent dynamics: investment performance recovery following the March quarter drawdown, the IPO contribution from the L1 Gold Fund, and net positive flows in the L1 Long Short and Affiliates segments.

By segment, the L1 Long Short strategies grew from $7.6 billion to $8.9 billion over the quarter, the most material increase in absolute terms. L1 Gold FUM — representing the net assets of the L1 Gold Fund following its April 2026 IPO — grew from $477 million to $833 million. L1 Affiliates increased from $2.9 billion to $3.3 billion. Platinum strategies, which include Platinum International, declined marginally from $3.2 billion to $3.3 billion, absorbing net outflows of $308 million that were consistent with the prior quarter’s experience.

The IPO of the L1 Gold Fund on the ASX in April 2026 contributed approximately $428 million in net inflows, representing a discrete addition to the FUM base from the public listing of a previously wholesale-only vehicle.

Performance Fees: FY26 Above the Prior Period

Realised performance fees attributable to L1G shareholders for the six months ended 30 June 2026 are expected to total $122–127 million. The single largest component is a one-off performance fee of approximately $79 million earned from the closure of the L1 Wholesale Gold Fund, which preceded the L1 Gold Fund IPO. This fee is explicitly described as a one-off item that will not recur.

The remaining $43–48 million in H2 FY26 performance fees reflects ongoing investment performance, primarily from the L1 Capital Catalyst Fund, which is described as delivering exceptional performance, alongside contributions from the L1 Global Opportunities Fund and other L1 Capital strategies.

Combined with H1 FY26 performance fees, the full-year FY26 performance fee total is expected to be $162–167 million. For context in evaluating this figure, investors should note the non-recurring nature of the $79 million Wholesale Gold Fund fee, which inflates the H2 and full-year figures relative to a run-rate earnings basis. The sustainable performance fee capacity of the business is better assessed from the ex-one-off component of the reported figure.

One-Off Costs: Integration and IPO Expenses

L1 Group flagged $33–36 million in expected after-tax one-off costs in H2 FY26, primarily related to two items: the integration of Platinum International following L1 Group’s acquisition of the Platinum Investment Management business, and the IPO of the L1 Gold Fund. These costs are non-recurring in nature and will affect the net profit reported for FY26 but should not be extrapolated into future periods as ongoing expenses.

The Non-Controlling Interest expense for FY26 is expected to increase to $11–13 million on an after-tax underlying basis, largely reflecting the performance fees earned in the period that are attributable to interests outside of the L1G parent entity.

Platinum Integration and Outflows

The Platinum segment — which includes the acquired Platinum International business alongside Platinum Asia and specialist funds and mandates — experienced net outflows of $308 million in the June quarter, consistent with the March quarter. The Platinum business has been experiencing persistent net outflows as investors have redeemed from international equity strategies managed by Platinum Asset Management over an extended period. The integration process and the strategic rationale for the L1 Group acquisition of Platinum centre partly on leveraging L1 Group’s distribution and client service capabilities to stabilise and ultimately reverse these flows, though that outcome remains to be demonstrated.

Upcoming Results and Market Context

L1 Group’s full FY26 financial results are scheduled for 17 August 2026. The July update provides investors with advance context on the two most market-sensitive financial metrics — FUM and performance fees — ahead of the comprehensive results release. The investment performance recovery noted in the quarterly update, following the March volatility from the Iran conflict, will be an important element of the narrative when the full results provide asset class and fund-level performance detail.

 

Conclusion

L1 Group’s June quarter FUM update confirms a material recovery from the March quarter’s Iran conflict-related volatility, with FUM growing 12.4% to $19.1 billion. The FY26 performance fee range of $162–167 million is elevated by a one-off $79 million fee from the Wholesale Gold Fund closure, and investors will assess the underlying recurring performance fee capacity from the ex-one-off component of approximately $83–88 million for the year. The ongoing Platinum net outflows and the integration cost burden represent the principal near-term headwinds, with the full FY26 results on 17 August providing the comprehensive financial context.