L1 Group Limited reported funds under management of approximately $16.963 billion as at 31 March 2026, reflecting a 3.8% quarterly decline from $17.639 billion at 31 December 2025. The contraction was primarily driven by adverse market conditions during the March quarter, with the ASX 200 index falling 7.1% and the MSCI World declining 6.4% in response to geopolitical tensions in Iran. Despite this near-term headwind, the company has already recovered substantially, with FUM rebounding to approximately $17.9 billion as of 10 April 2026, suggesting resilience in the underlying business.
The segment performance reveals a more nuanced picture beneath the headline FUM figure. L1 Long Short increased to $7.610 billion from $7.530 billion in the prior quarter, while L1 Affiliates grew to $3.418 billion from $3.362 billion, indicating positive net client flows in these areas. This organic growth is particularly encouraging given the volatile market environment. Conversely, Platinum strategies, which encompass the company’s international offerings, experienced net outflows of $308 million during the quarter, though this represents a meaningful slowdown compared to the $854 million in outflows recorded during the December quarter. This deceleration in redemptions suggests the stabilisation of what had been a concerning trend for investors, as persistent outflows from major fund segments can signal loss of confidence in strategy performance or competitive positioning.
A significant catalyst for the group emerges from the imminent launch of L1 Gold Fund Limited on the ASX on 24 April 2026. The transition from the wholesale fund structure to a listed vehicle will trigger a performance fee upon closure of the existing L1 Wholesale Gold Fund, with the quantum to be determined by fund performance through 17 April 2026. The company expects this performance fee to substantially offset the approximately $20 million in IPO costs associated with the listing, with the offset to be recognised as a one-off item below the line. This represents a genuine value realisation event for the group and provides a tangible near-term earnings benefit, pending the extent of the fund’s outperformance during the measurement period.
For investors, the announcement demonstrates that L1 Group’s diversified fund platform retains underlying strength despite short-term market dislocations. The swift recovery in FUM to near-record levels within two weeks of quarter-end, combined with positive net flows in core segments and slowing redemptions in previously weak areas, suggests the portfolio is stabilising. The upcoming performance fee windfall and the separation of L1 Gold reporting from June 2026 onwards will also improve financial transparency around the group’s various segments. The company is scheduled to provide an update on the performance fee quantum during the week commencing 20 April 2026, offering a concrete milestone for investors to monitor. This announcement carries material implications and has been flagged as price sensitive by the ASX.
View the full ASX announcement (PDF)
About L1 Group Limited (ASX: L1G)
L1 Group Limited is an investment manager that operates through a merger of Platinum Asset Management and L1 Capital, offering investment products across long short Australian equities, international equities, activist equities, multi-strategy hedge funds, and UK residential property funds. The company serves institutional investors, superannuation funds, pension funds, family offices, and retail investors globally. Based in Melbourne, Australia, the firm manages approximately AUD 18 billion in funds under management as of December 2025.
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