L1 Long Short Fund Announces Net Tangible Asset Values of $4.07 Pre-Tax and $3.79 Post-Tax Per Share as of 17 July 2026

Insight into L1 Long Short Fund’s Investment Approach and Structure

L1 Long Short Fund Limited is an Australian-based investment fund operating a long-short strategy aimed at generating returns by holding long positions in securities expected to increase in value and short positions in those anticipated to decline. Headquartered in Melbourne at Level 45, 101 Collins Street, the fund offers investors diversified exposure through a long-short portfolio designed to perform across various market conditions. Listed on the Australian Securities Exchange under the ticker LSF, it provides both retail and institutional investors access to professional long-short portfolio management via a publicly traded vehicle.

The fund’s long-short strategy seeks to achieve capital growth and risk mitigation by balancing long and short positions simultaneously. This method reduces reliance on overall market trends, potentially delivering more stable returns during volatile periods. By maintaining exposures on both sides of the market, LSF aims to capitalize on opportunities in rising and falling markets, diversifying return sources and lowering systematic risk. This flexible investment framework allows the fund to adapt to changing market conditions and exploit upside and downside opportunities across its investment universe.

Pre-Tax NTA Reflects Fund’s Portfolio Performance

As of 17 July 2026, L1 Long Short Fund’s Net Tangible Asset backing before tax was $4.0680 per ordinary share, according to the latest company update. This figure is calculated before accounting for deferred tax provisions on unrealised gains and losses, offering investors a gross valuation of the fund’s underlying assets prior to tax considerations. The pre-tax NTA is valuable for investors assessing the portfolio’s pre-tax returns and economic value without the influence of tax liabilities.

This pre-tax NTA serves as a critical benchmark for fund managers and investors evaluating the long-short strategy’s performance during the period. It encompasses the total value of long and short positions, cash, and other assets net of liabilities, excluding future tax obligations on unrealised gains. Understanding this metric helps investors assess gross investment returns and compare them with relevant benchmarks, providing insight into the portfolio management team’s effectiveness. The announcement clarifies that all figures are unaudited and approximate, consistent with industry standards for timely NTA disclosures.

Post-Tax NTA Offers Comprehensive Tax-Adjusted Valuation

The fund’s Net Tangible Asset backing after tax was $3.7859 per ordinary share as at 17 July 2026, reflecting valuation after all tax liabilities have been incorporated. This figure is especially relevant for investors seeking to understand the true economic value of their holdings, as it includes all tax obligations from the fund’s investment activities and portfolio changes. The difference between the pre-tax NTA of $4.0680 and the post-tax NTA of $3.7859 represents the deferred tax liability on unrealised portfolio gains and losses, highlighting the embedded tax cost in current investment positions.

The post-tax NTA is generally the preferred metric for investors focused on their actual economic entitlement after tax obligations. This comprehensive valuation ensures transparency regarding the full tax impact of investment activities, including deferred tax liabilities that would arise upon realisation of gains or losses. It is commonly used to determine whether the fund’s shares trade at a premium or discount to net asset value, a crucial factor in investment decisions and portfolio valuation.

Unaudited Nature and Disclosure Practices of NTA Figures

L1 Long Short Fund’s update explicitly states that all disclosed NTA figures are unaudited and approximate, reflecting standard practice among listed investment funds for timely reporting. While unaudited, these figures are calculated according to the fund’s established valuation methodologies and policies. This approach enables the fund to provide investors with current valuation data regularly without the delays associated with full audits, facilitating more frequent updates on net asset value.

Providing unaudited and approximate NTA figures is common in the Australian listed fund management sector, balancing the need for timely investor information with operational practicalities. Investors using these figures for decision-making should be aware of their unaudited status and may refer to formally audited NTA figures in periodic financial statements for confirmation. The update clearly differentiates between pre-tax and post-tax calculation methods, helping investors select the appropriate metric for analysis and valuation.

Deferred Tax Provisions on Unrealised Gains and Losses

The calculation of post-tax NTA requires provisions for deferred tax liabilities arising from unrealised gains and losses within the investment portfolio. This reflects the tax impact if the fund were to realise all current positions at market value, incorporating the tax cost associated with net unrealised gains. The deferred tax is calculated based on the applicable corporate tax rate and the portfolio’s unrealised gains and losses, offering a comprehensive view of the fund’s economic position after tax obligations.

The notable difference between the pre-tax NTA of $4.0680 and the post-tax NTA of $3.7859 indicates a significant deferred tax liability on unrealised gains, typical for funds in rising markets or where long positions have appreciated more than short positions have declined. This deferred tax provision helps investors understand the true economic value of their shares after accounting for future tax costs, enhancing accuracy in comparing share price to underlying value and assessing net performance.

Monitoring Share Price Premiums and Discounts

Investors in L1 Long Short Fund commonly compare the fund’s share price to its NTA figures to determine if shares trade at a premium or discount to net asset value. NTA per share is a fundamental benchmark for valuing listed funds, with premiums and discounts influenced by investor sentiment, market conditions, and perceptions of fund management and strategy. The post-tax NTA of $3.7859 per share is typically the most relevant reference for these calculations, reflecting true economic value after tax.

Understanding the relationship between share price and NTA is vital for investors considering entry or exit points, as significant premiums or discounts may signal investment opportunities or risks depending on market dynamics. L1 Long Short Fund’s timely NTA disclosures enable investors to regularly assess this relationship and make informed decisions. Premiums and discounts can fluctuate due to fund inflows and outflows, demand for the strategy, relative performance, and broader market trends, underscoring the importance of ongoing NTA monitoring.

Long-Short Strategies in the Australian Investment Market

Long-short investment strategies have gained prominence in Australia, offering alternative return sources and diversification benefits. L1 Long Short Fund operates within this expanding market segment, providing a listed vehicle for professional long-short management accessible to public investors. Its strategy appeals to those seeking reduced market direction dependence and returns driven by active security selection and balanced long-short positioning, attracting growing investor interest.

The increasing acceptance of long-short strategies reflects recognition of their potential to generate returns less correlated with traditional equity markets and to perform in both rising and falling environments. LSF’s status as a listed fund provides liquidity and transparency alongside expert portfolio management. The fund’s recent NTA disclosure highlights its commitment to transparent, regular valuation reporting, positioning it competitively within Australia’s listed fund management sector and enabling investors to track value creation or erosion continuously.

Portfolio Composition and Risk Management Overview

Although the company update does not detail the specific holdings of L1 Long Short Fund’s current portfolio, the NTA figures indicate the overall asset value and net impact of its long and short positions. The fund’s investment framework includes diverse securities and market segments, with the long-short approach designed to balance risk through offsetting exposures. Long positions reflect conviction in upside potential, while short positions hedge downside risk and generate returns in declining markets, creating a diversified return profile.

The deferred tax provision difference between pre-tax and post-tax NTA suggests that long positions have appreciated more than short positions have declined, resulting in net unrealised gains. This portfolio stance reflects the fund managers’ current market outlook and value assessments. Investors seeking detailed information on holdings, sector allocations, and risk management should consult the fund’s periodic fact sheets and reports, which provide comprehensive disclosures beyond headline NTA figures.

Ongoing NTA Monitoring and Disclosure Frequency

Investors in L1 Long Short Fund should regularly track the fund’s NTA disclosures as a key performance metric and gauge of the long-short strategy’s effectiveness. The July 22, 2026 company update provides NTA figures as of July 17, 2026, indicating the fund offers reasonably frequent valuation updates. Establishing a routine to compare successive NTA releases allows investors to monitor trends in net asset value and performance trajectory.

Future NTA disclosures will enable investors to evaluate whether the fund’s strategy continues delivering its targeted risk-adjusted returns and if market positioning aligns with expectations. Monitoring changes in deferred tax provisions can also reveal insights into realised and unrealised gains, offering visibility into performance composition and potential tax costs related to portfolio adjustments or wind-up scenarios. The next NTA update will be a crucial milestone for investors to assess valuation trends and share price premium or discount dynamics, making regular NTA review essential for informed investment decisions and portfolio management for LSF shareholders.