Key Takeaways
- • L1 Global Long Short Fund Limited (ASX: GLS) reported NTA per share of $1.7709 after tax and $1.7487 before tax as at 10 July 2026, reflecting the fund's asset backing on this measurement date.
- • The fund's portfolio value exceeded its high-water mark as of 30 June 2026, triggering a performance fee entitlement of approximately $26.30 million (inclusive of net GST and RITC impact) payable to investment manager L1 Capital Pty Ltd.
- • The $26.30 million performance fee has already been fully accrued within the reported NTA figures, meaning the payment will not result in any further reduction to the per-share NTA valuation.
- • This performance fee milestone represents a significant compensation event for the fund manager, contingent on portfolio performance exceeding the established high-water mark threshold.
Summary
L1 Global Long Short Fund Limited, listed on the Australian Securities Exchange under the ticker GLS, disclosed its latest Net Tangible Asset (NTA) valuation as at 10 July 2026, reporting $1.7487 per ordinary share before tax and $1.7709 per ordinary share after tax. The fund, which is managed by L1 Capital Pty Ltd, operates a global long/short equity strategy benchmarked against the MSCI All Country World Net Index.
The most significant development from this disclosure is the triggering of a performance fee milestone. As the fund's portfolio value as of 30 June 2026 exceeded its established high-water mark—a threshold that prevents managers from collecting performance fees on previously unrealized gains—L1 Capital Pty Ltd became entitled to a performance fee of approximately $26.30 million. This figure includes adjustments for net Goods and Services Tax (GST) and Research and Development Tax Credit (RITC) impacts.
A critical consideration for shareholders is that this $26.30 million performance fee has already been fully accrued within the reported NTA per share figures. Consequently, when the fee is subsequently paid to the investment manager, it will not create any additional downward pressure on the per-share NTA valuation. This accounting treatment ensures transparency regarding the fund's true economic position available to shareholders, as the fee obligation is already reflected in the valuation disclosed to the market.
The disclosure provides shareholders with an important update on both asset backing and manager compensation structure. The high-water mark mechanism aligns the interests of L1 Capital Pty Ltd with those of fund investors by ensuring performance fees are only earned when the fund achieves returns that exceed previous peaks in portfolio value. This milestone represents a material compensation event for the fund manager and confirms that the fund's investment strategy has generated returns sufficient to trigger this performance-based entitlement.
The most significant development from this disclosure is the triggering of a performance fee milestone. As the fund's portfolio value as of 30 June 2026 exceeded its established high-water mark—a threshold that prevents managers from collecting performance fees on previously unrealized gains—L1 Capital Pty Ltd became entitled to a performance fee of approximately $26.30 million. This figure includes adjustments for net Goods and Services Tax (GST) and Research and Development Tax Credit (RITC) impacts.
A critical consideration for shareholders is that this $26.30 million performance fee has already been fully accrued within the reported NTA per share figures. Consequently, when the fee is subsequently paid to the investment manager, it will not create any additional downward pressure on the per-share NTA valuation. This accounting treatment ensures transparency regarding the fund's true economic position available to shareholders, as the fee obligation is already reflected in the valuation disclosed to the market.
The disclosure provides shareholders with an important update on both asset backing and manager compensation structure. The high-water mark mechanism aligns the interests of L1 Capital Pty Ltd with those of fund investors by ensuring performance fees are only earned when the fund achieves returns that exceed previous peaks in portfolio value. This milestone represents a material compensation event for the fund manager and confirms that the fund's investment strategy has generated returns sufficient to trigger this performance-based entitlement.
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