L1 Global Long Short Fund (GLS) H2 2024 earnings summary

Executive summary

• Delivered a pre-tax NTA return of 3.7% for the year ended 30 June 2024, significantly underperforming the MSCI AC World Net Index's 19.0% return due to lower US tech exposure and higher China weighting.

• Net profit after tax was $12.8 million, down from $37.9 million in the prior year; basic and diluted EPS were 4.33 cents per share.

• Fully franked final dividend of 3 cps declared, bringing the total for the year to 6 cps, representing a grossed-up yield of 6.1% on the 30 June 2024 share price.

• Board concluded a strategic review, agreeing to pursue a scheme of arrangement with Platinum International Fund (PIXX) to address the persistent share price discount to NTA.

Financial highlights

• Total revenue and other income fell 59% to $25.1 million compared to the prior year.

• Profit before tax was $18.3 million (down from $54.1 million); profit after tax was $12.8 million (down from $37.9 million).

• Pre-tax NTA per share decreased from $1.55 to $1.53 after paying 6 cps in dividends and 4 cps in taxes.

• Total shareholder return, including franking credits, was 18.6% for the year, aided by a narrowing share price discount to NTA.

Outlook and guidance

• Board expects continued focus on capital growth via undervalued global equities; AI-related holdings (e.g., TSMC, Broadcom) performed well and are seen as future differentiators.

• Further update on the PIXX scheme of arrangement expected by end of September 2024.