How Did Associate Global Partners Achieve 4.6% FUM Growth This Quarter?

Strong Fund Performance Drives FUM Growth

Associate Global Partners Limited (ASX, APL) has reported a solid quarter ending 30 September 2025, with funds under management (FUM) increasing by 4.6% to $1.464 billion. This growth was achieved despite a significant $86.9 million cash distribution paid in July, primarily from the WCM Large Cap strategy, which had a standout year. Excluding these distributions, FUM actually grew by an impressive 11.1% during the quarter, reflecting strong net inflows and positive market performance.

The company’s marketing and distribution efforts, combined with the strong returns of its WCM funds, contributed to net inflows of $45.1 million. This inflow trend has been positive throughout the calendar year, underscoring growing investor confidence in APL’s product suite.

WCM Strategies Continue to Outperform

The WCM Large Cap strategy delivered a quarterly return of 9.52%, comfortably outperforming its benchmark return of 6.53%. Over the past year, it has returned 44.26%, nearly doubling the benchmark’s 23.31%. Similarly, the WCM Small Cap strategy has consistently outperformed its benchmark across multiple timeframes, reinforcing the strength of APL’s investment management partners.

These performance metrics have supported enhancements to the WCM Quality Global Growth Fund - Active ETF (WCMQ), including a new minimum annualised cash yield target of 5.0% and the introduction of quarterly distributions. Additionally, a secondary unit issue with a 1.25% investor loyalty bonus has attracted $10.8 million in applications, signaling strong investor appetite.

Financial Health and Operational Momentum

APL reported operating cash inflows of $0.479 million for the quarter, marking the fourth consecutive quarter of positive cash flow from operations. The company’s cash balance increased to $5.071 million while loan debt slightly decreased to $1.685 million, reflecting prudent financial management.

Cash receipts from customers rose 44.9% year-on-year, driven by timing of management and performance fees. Investing and financing cash outflows were modest, including payments related to the Brookvine acquisition and loan repayments.

Expanding Distribution and Investor Base

Marketing and distribution activities remained a key focus, with ongoing roadshows, webinars, and adviser engagement supporting FUM growth. The retail investor base grew by 4% to 12,746 investors, highlighting expanding market reach. The company’s partnerships with WCM, THB Asset Management, Vertium Asset Management, and Switzer Dividend Growth Fund continue to underpin its diversified product offering.

Looking ahead, APL is well positioned to capitalize on its strong fund performance and distribution capabilities, though it remains mindful of potential market volatility impacting global growth equities.