Regal Partners (ASX: RPL) banks on product innovation, fund performance to drive FUM growth

4 min read | December 12, 2023 03:13 PM AEDT | By Team Kalkine Media

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Regal Partners (ASX: RPL) banks on product innovation, fund performance to drive FUM growth — Image source: Shutterstock

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Highlights

Regal Partners is an Australia based investment management services provider with headquarters in Sydney, New South Wales (NSW)

The company registered 99.5% YoY growth in normalised NPAT in 1HFY23

New Highland Pty. Ltd. has nearly 34.95% shareholding in the company

Regal Partners Limited (ASX:RPL) is an ASX-listed financial company which offers a vast range of investment management services covering private markets, hedge funds, real and natural assets and capital solutions. The company mainly offers services to private investors, charitable groups, family offices and institutions.

Financial performance

In the first half of the financial year 2023 (1HFY23), the company witnessed a 26.2% YoY increase in income to AUD 47.6 million, while normalised NPAT grew by 99.5% YoY to AUD 13.10 million as expenses decreased and revenue increased. During the stated period, funds under management increased by 11.5% to AUD 5773 million.

Top 10 shareholders of RPL

The top 10 shareholders of RPL have around 73.34% shareholding in the company, while the top four have nearly 64.01% shareholding. New Highland Pty. Ltd. and RMPL Investments Pty. Ltd. have the highest stakes in the company with a shareholding of t ~34.95% and ~15.90%, respectively.

Recent business update

On 11 December 2023, the company lodged prospectus with the Australian Securities and Investments Commissions to acquire ordinary shares of PM Capital Limited, which was initially announced on 3 November 2023. The offer is to buy more than 68.81 million converting shares at AUD 1.889 issue price to the subscriber.

Through an ASX update, dated 8 December 2023, the company informed that more than 1.66 million conditional rights to securities lapsed on 8 December 2023, as the conditions remained unsatisfied.

Outlook

In the September 2023 quarter, FUM of RPL stood at AUD 5.8 billion, almost flat sequentially The company witnessed positive funds flows as it invested in its marketing and distribution team in the past 12 months.

The company is focused on client relationships, product innovation and fund performance to drive funds under management and net inflows. Moreover, it expects offshore allocation to increase as a percentage of the total in the coming three to five years.

Share performance of RPL

RPL shares closed 2.44% lower at AUD 2.4 apiece on 12 December 2023. With this, RPL’s share price has decreased by 32.39% in the past 12 months and has increased by 6.19% in the past three months.

The 52-week high of RPL is AUD 3.84, recorded on 31 January 2023, while the 52-week low is AUD 1.7, recorded on 31 October 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 12 December 2023. The reference data in this report has been partly sourced from EODHD/Others.

Disclaimer

This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.

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