L1 Global Long Short Fund (GLS) H2 2025 earnings summary

Executive summary

• Net profit after tax for the year ended 30 June 2025 was $9.7 million, down from $12.8 million in 2024, with a pre-tax NTA return of 3.4% versus 18.4% for the MSCI All Country World Net Index in A$ terms, reflecting lower exposure to US technology stocks.

• The pre-tax NTA per share decreased from $1.53 to $1.51, including 6 cents per share in dividends paid during the year.

• A strategic review led to the withdrawal of a proposed scheme with PIXX and approval for an on-market buyback of up to 20% of issued share capital.

• The Board received proposals from L1 Capital and Wilson Asset Management for changes in management and board composition, with an EGM expected by 3 October 2025.

Financial highlights

• Total investment income was $21.5 million (2024: $25.1 million), with net gains on equities and derivatives of $10.0 million and dividends of $8.4 million.

• Total expenses increased to $7.6 million (2024: $6.8 million), mainly due to scheme-related costs.

• Earnings per share were 3.28 cents (2024: 4.33 cents).

• Dividends paid totaled 6 cents per share, fully franked, representing a grossed-up yield of 6.5% on the closing share price.

Outlook and guidance

• The investment manager anticipates elevated risk in US stock markets and is focusing on value stocks outside US mega tech, with protective shorts and cash management.

• The Board will assess proposals to potentially change the investment manager following the EGM.