Regal Investment Fund reported a remarkable half-year performance with a 201% increase in operating profit and a 12 cents per unit distribution declared for December 2025. The Fund's strategic buy-back program and strong net asset growth underscore its robust position.
- Operating profit up 201% to $129.1 million
- Total investment income increased 130% to $174.5 million
- Declared distribution of 12.0 cents per unit payable March 2026
- On-market buy-back of 2.8 million units costing $9.2 million
- Net tangible assets rose to $784.2 million with NTA per unit at $3.72
Strong Half-Year Financial Performance
Regal Investment Fund has delivered an impressive financial result for the half-year ended 31 December 2025, with operating profit soaring by 201% to $129.1 million compared to the prior corresponding period. This surge was driven by a 130% increase in total investment income, which reached $174.5 million, reflecting the Fund’s effective investment strategies and market positioning.
Distribution and Unit Buy-Back Initiatives
The Fund declared a distribution of 12.0 cents per unit, payable on 9 March 2026, marking an increase from the previous 10 cents per unit. This distribution aligns with the Fund’s strong earnings and commitment to returning value to unitholders. Additionally, the Fund continued its on-market buy-back program, purchasing and cancelling 2.8 million units at a cost of $9.2 million during the half-year. This buy-back strategy aims to manage liquidity and address any material discount to net asset value, supporting unit price stability.
Growth in Net Tangible Assets and Unit Price
Net tangible assets attributable to unit holders increased to $784.2 million, up from $732.9 million a year earlier. Correspondingly, the net tangible asset value per unit rose to $3.72 from $3.38, reflecting both the Fund’s profitability and the impact of the buy-back program reducing units on issue. The Fund’s performance for the half-year was 18.95% net of fees, significantly outperforming the RBA Cash Rate benchmark of 1.85%, underscoring its strong investment management.
Operational and Governance Highlights
The Fund maintained its investment focus on alternative strategies managed by Regal Partners Funds Management Pty Limited, which replaced the previous manager in December 2025. There were no significant changes in the Fund’s state of affairs or control over entities during the period. The interim financial report was reviewed by KPMG, which issued an unmodified opinion, providing assurance on the accuracy and compliance of the Fund’s reporting.
Looking Ahead
With a solid half-year performance and ongoing capital management initiatives, Regal Investment Fund appears well-positioned to continue delivering value to investors. The Fund’s disciplined approach to distributions, buy-backs, and portfolio management will be key areas to watch in the coming months.
Bottom Line?
Regal Investment Fund’s robust profit growth and capital management signal confidence, but valuation uncertainties in some assets warrant close monitoring.
Questions in the middle?
- How will the Fund sustain its strong performance amid changing market conditions?
- What impact will the ongoing buy-back program have on unit liquidity and pricing?
- How might valuation uncertainties in level 3 assets affect future financial results?