L1 Long Short Fund Announces NTA Per Share of $4.06 Before Tax as of 20 July 2026

Overview of L1 Long Short Fund's NTA Reporting Methodology

L1 Long Short Fund Limited operates a long-short investment strategy, aiming to generate returns by holding long positions in undervalued securities and short positions in overvalued ones. The fund actively manages its portfolio to outperform benchmarks across market cycles. Listed on the Australian Securities Exchange under the ticker LSF and headquartered in Melbourne, Victoria, the fund regularly publishes NTA per share to communicate the intrinsic value of its investments to shareholders. NTA is calculated as the total tangible assets minus liabilities divided by the number of ordinary shares outstanding. Differentiating between before-tax and after-tax NTA is crucial for investors, as it highlights the tax impact of unrealised gains and losses within the portfolio. This transparency enables shareholders to assess net asset value independently from market-driven share price fluctuations.

NTA Before Tax of $4.0627 and After-Tax Valuation Details

As of 20 July 2026, L1 Long Short Fund reported a before-tax NTA per ordinary share of $4.0627. This figure excludes deferred tax provisions on unrealised portfolio gains and losses, offering investors insight into the fund's raw economic asset value without tax considerations. However, this measure does not account for potential tax liabilities that may arise upon realisation of gains.

After accounting for all tax obligations, the after-tax NTA per share was $3.7856, reflecting a $0.2771 difference from the before-tax figure. This spread underscores the significant effect of deferred tax liabilities on the fund’s net asset value. The after-tax NTA provides a more conservative and realistic estimate of shareholder value by incorporating tax impacts on unrealised gains. Investors comparing L1 Long Short Fund with other listed vehicles should consider both metrics to evaluate relative valuations and tax efficiency.

Unaudited Figures and Their Implications for Investors

The disclosed NTA figures are unaudited and approximate, as stated by the company. This means they have not undergone formal audit verification and are subject to estimation uncertainties, especially given the complexities of valuing active portfolios with positions lacking daily market prices or requiring judgment-based fair value assessments. These figures represent management’s best estimate as of 20 July 2026 but may be revised if valuation adjustments or errors emerge.

Despite being unaudited, regular NTA disclosures are a standard practice for listed investment funds on the ASX, providing essential information for shareholders to evaluate whether the fund’s share price aligns with its net asset backing. Investors should interpret single NTA data points as part of a broader trend analysis over multiple reporting periods rather than definitive valuations.

Tax Liability Reflected in the NTA Spread

The $0.2771 per share difference between before-tax and after-tax NTA highlights the deferred tax liabilities embedded in the fund’s portfolio due to unrealised gains. This tax exposure represents a real economic cost to shareholders, as realising gains would reduce distributable value by the tax amount. Monitoring this spread helps investors understand the net value available and potential tax-related impacts on future distributions or capital returns.

Fluctuations in the tax spread can indicate changes in unrealised gains or losses within the portfolio. A widening gap suggests growing unrealised gains and tax liabilities, while a narrowing spread may reflect realised losses or reduced gains. Investors aiming to minimise tax drag should track this metric closely to gauge the fund manager’s tax management effectiveness. For shareholders in higher tax brackets, the after-tax NTA is typically the more relevant valuation figure.

Context of the 20 July 2026 Reporting Date and Market Environment

The NTA figures as at 20 July 2026 provide a snapshot of the fund’s net asset value at that point in the investment cycle. Market factors such as security prices, currency fluctuations, and credit spreads impact valuations daily, meaning the NTA is inherently linked to market conditions on the reporting date. Investors should be aware that the fund’s NTA may have changed since then depending on portfolio performance.

Regular NTA updates, typically monthly or quarterly, are vital for shareholders to track value creation or erosion over time. Evaluating NTA trends across multiple periods offers deeper insights into the fund manager’s success in achieving investment objectives compared to isolated data points. The 20 July 2026 figure serves as one reference within this ongoing performance assessment framework.

Impact of Long-Short Strategy on NTA Volatility

L1 Long Short Fund’s investment approach combines long positions, which benefit from rising security prices, with short positions, profiting from price declines. This strategy aims to generate returns across various market conditions and potentially reduce sensitivity to market downturns versus long-only funds. However, short positions introduce complexities such as borrowing costs, potential forced buy-ins, and theoretically unlimited losses. Consequently, the fund’s NTA can exhibit greater volatility compared to traditional equity funds, especially amid sector rotations or market swings affecting either the long or short portfolio.

Shareholders should expect more frequent and potentially sharper NTA fluctuations due to this strategy. The fund manager’s research and market timing decisions critically influence performance. Variations in long and short position outcomes can materially shift NTA between reporting dates. This inherent volatility reflects the active, leveraged nature of the fund’s portfolio management and requires investors to maintain suitable risk tolerance and investment horizons.

Share Price Premium or Discount Relative to NTA

As a listed investment fund, L1 Long Short Fund’s shares trade on the ASX, and their market price may differ from the underlying NTA per share. Trading above NTA indicates a premium, while trading below reflects a discount. The immediate share price impact relative to the disclosed NTA was not specified in the update. Investors should monitor whether LSF shares trade at a premium or discount, as this offers insights into market sentiment and may present arbitrage opportunities for market makers.

Persistent premiums or discounts can arise from factors including investor perception, fund manager reputation, share liquidity, and comparative attractiveness of the investment strategy. Prospective buyers or sellers should evaluate the market price against the latest NTA to determine if they are transacting at a fair value relative to net asset backing. Long-term investors typically prioritize NTA trends over short-term price fluctuations, while tactical traders should closely watch the premium-discount dynamics.

Compliance with ASX Continuous Disclosure and Regulatory Obligations

Publishing NTA figures aligns with L1 Long Short Fund’s obligations under the Australian Securities Exchange continuous disclosure rules and the Corporations Act 2001 (Cth). Listed entities must disclose material information likely to influence security prices or values. NTA per share is considered material for listed investment funds as it underpins investor assessment of fund performance and share price fairness.

Timely and transparent NTA reporting supports investor protection by promoting fair pricing and reducing information asymmetry between fund managers and shareholders. By releasing unaudited NTA data promptly after each reporting date, L1 Long Short Fund reinforces its commitment to transparency and investor confidence. The update was authorised by the Company Secretary, confirming adherence to governance standards and accuracy to the best of management’s knowledge.

Investor Guidance for Monitoring Future NTA Updates

Current and prospective investors in L1 Long Short Fund shares are advised to regularly review subsequent NTA disclosures. Important metrics include month-over-month or quarter-over-quarter NTA changes, trends in the before-tax and after-tax spread, and any divergence between share price and NTA movements. Comparing the fund’s NTA growth against relevant benchmarks and peer long-short funds will assist in evaluating the manager’s performance relative to risk.

Investors should also consider fund management commentary on portfolio positioning, market outlook, and strategic adjustments accompanying NTA releases. The upcoming NTA disclosures will serve as critical checkpoints for assessing ongoing fund performance. Additionally, investors must stay alert to any significant announcements regarding fund structure, management, fees, or investment objectives that could impact future NTA and the fund’s suitability within their portfolios.