Funds Raise Millions as Takeover Bets and Cash Concerns Split the Market

The biggest weekly moves came from L1 Group (ASX:L1G), down 6.61%, and Regal Investment Fund (ASX:RF1), down 6.44%. Pacific Current Group (ASX:PAC) rose 6.24% after it rejected a bid from Roc Partners. L1 Group and Regal both confirmed distributions, so investors may have sold the shares even while income payments remained in place.

Takeover news drives Pacific Current

Pacific Current rejected Roc Partners’ non-binding offer because it believed the price and proposed treatment of shareholders were not acceptable. The company remains open to a higher cash offer. It is also reviewing River Capital’s proposal, which could involve issuing shares at $13 each.

The share price rose after the stock reopened at $11.57, then moved another 1.56% higher. That shows some buying continued after the initial gap. The process is not a deal yet. Pacific Current expects to provide an update by its 12 November annual meeting, but there is no certainty that any transaction will proceed.

Income funds raise money and keep paying investors

Capital raising was another clear theme. PM Capital Global Opportunities Fund (ASX:PGF) accepted all valid applications in its A$172 million share purchase plan. Around 56 million new shares will qualify for the coming 7.5-cent fully franked dividend, which includes a tax credit for eligible investors.

Gryphon Capital Income Trust (ASX:GCI) secured A$86.25 million through a wholesale placement at $2 a unit. It plans to use the money to manage and expand its income portfolio. Existing investors may also buy up to $30,000 of new units through a planned purchase offer. Both raisings give the funds more money to invest, but they also increase the number of securities on issue.

Strong investment results lift several funds

Australian United Investment Company (ASX:AUI) delivered a 19.9% rise in underlying profit to A$59.3 million after merging with Diversified United Investment. A one-off A$159.9 million acquisition gain pushed statutory profit to A$220.4 million, so the headline figure gives an inflated view of normal earnings. The combined portfolio now stands at about A$3.1 billion, including 10.5% in international shares.

AUI’s pre-tax return on net tangible assets, meaning the value of its investments after liabilities, reached 9.5%. That beat the 6.1% return from the ASX 200 comparison index. The company declared ordinary and special dividends totalling 28 cents a share, with tax credits attached.

Other funds also reported gains. Vaughan Nelson Global Equity SMID Fund (ASX:VNG) increased net assets more than fourfold to A$319.3 million after A$31.8 million of investment gains and strong new applications. Loftus Peak Global Disruption Fund (ASX:LPH) returned 20.26% for its unhedged class, ahead of its 17.61% comparison index. WAM Alternative Assets (ASX:WMA) reported a 9.1% portfolio return and said 24 exits had been completed at an average premium of 28.3% to net tangible assets.

Cash pressure remains a problem for smaller companies

Peppermint Innovation (ASX:PIL) reported only A$217,720 of revenue and a A$2.40 million loss for FY26. Its payments platform in the Philippines gained users, reaching 68,828, while a QRPh pilot processed more than PHP150 million in June. The company still had negative net assets of A$578,233. ASX reinstatement and more funding remain unresolved.

Queste Communications (ASX:QUE) ended August with just A$6,000 in standalone cash. That implies about 2.3 months of funding at the recent spending rate. Its consolidated cash balance was A$2.905 million, but investors must consider how much of that money is available to the parent company. A loan facility and listed investments provide extra resources, although neither removes the need to control spending.

Dividends, buy-backs and weaker share prices

Fat Prophets Global Contrarian Fund (ASX:FPC) will pay a three-cent unfranked final dividend. Regal Partners Global Investments (ASX:RG1) confirmed a five-cent fully franked dividend and set its reinvestment price at A$2.60635. Kapstream Investment Trust (ASX:KIT) will begin a 12-month on-market buy-back, but it has set no target number of units or dollar amount.

Distribution news did not protect every share price. L1 Group fell after confirming its two-cent fully franked dividend and a $1.2326 reinvestment price. The decline continued after the stock reopened at $1.25, with a further 9.60% fall. Regal Investment Fund also fell heavily despite confirming a 13.842156-cent unfranked distribution. Investors may have been more concerned with the funds’ recent trading prices than with the cash payments.

Global and Australian equity funds produced the strongest operating results this week, while smaller businesses faced stricter tests around cash and future funding. The next signals will come from Pacific Current’s strategic review, Peppermint’s ASX status and the actual take-up of planned fund raisings.