Associate Global Partners’ Narrowed Losses Highlight Challenges Ahead for Growth

Improved Financial Performance Amid Market Recovery

Associate Global Partners Limited (ASX: APL) has delivered a markedly improved financial performance for the half-year ended 31 December 2025, reporting a net loss after tax of just $32,000, down sharply from a $413,000 loss in the prior corresponding period. This 92% reduction in losses reflects a combination of higher revenues, strict cost control, and positive market conditions that supported growth in the company’s funds under management (FUM).

The Group’s total revenue rose 10.2% to $3.565 million, driven primarily by increased investment management fees linked to net inflows and improved performance across its product suite. Operating expenses were marginally lower at $3.492 million, underscoring management’s disciplined approach to cost containment despite ongoing investments in new manager partnerships and marketing capabilities.

Modest Growth in Funds Under Management

FUM increased modestly to $1.420 billion as at 31 December 2025, up 1.6% from $1.397 billion at the end of June 2025. Excluding significant cash distributions and dividends paid during the period, the underlying FUM growth was a more robust 9.2%. This growth was largely driven by net inflows of $55.2 million for the half-year and strong performance from WCM Investment Management’s large cap strategies, which remain a cornerstone of AGP’s product offering.

AGP’s dual-channel distribution model, which includes a strategic alliance with Switzer Financial Group, continues to expand its reach to over 12,800 investors, a 5% increase over the half-year. The company’s focus on scaling both intermediary and direct-to-investor channels is a key pillar of its growth strategy.

Capital Raising and Strategic Partnerships

In February 2026, WCM Global Growth Limited (WQG), an ASX-listed investment company within the AGP ecosystem, successfully completed a $45 million share placement to professional and sophisticated investors. This was followed by a pro rata entitlement offer and a shortfall offer, which have already secured firm commitments for an additional $40 million. The capital raising is expected to enhance WQG’s market capitalisation, liquidity, and operational scale, benefiting shareholders and supporting further investment in its growth strategy.

AGP also announced a memorandum of understanding with Muzinich & Co., a global credit manager, to develop a global private credit fund offering daily liquidity. This initiative, subject to final agreement, aims to broaden AGP’s product suite and tap into growing investor demand for private credit exposure.

Outlook and Market Positioning

Looking ahead, AGP remains focused on growing its FUM through selective partnerships, expanding its investor base, and maintaining cost discipline. The company’s investment in marketing and distribution, particularly through its partnership with Switzer Financial Group, positions it well to capitalise on the rising trend of self-directed investing and SMSF growth in Australia.

While no interim dividend was declared for the half-year, the company’s improved cash flow and balance sheet strength provide a foundation for potential future shareholder returns as profitability improves.