Associate Global Partners Posts 11% FUM Growth Amid Volatile Markets

Robust FUM Growth Despite Fund Transition

Associate Global Partners Limited (ASX, APL) has delivered a solid quarterly update for the period ending 30 June 2025, reporting funds under management (FUM) of $1.397 billion. This represents an 11% increase over the quarter when excluding the previously announced $382 million reduction due to the responsible entity change of the Vinva Global Systematic Equities Fund. The growth was primarily driven by strong fund performance, underscoring the resilience of APL’s diversified product suite amid volatile market conditions.

Following the payment of $86.6 million in cash distributions predominantly from the WCM Large Cap strategy, total FUM stood at $1.35 billion as of late July 2025. While the quarter saw a modest net outflow of $1.8 million, July’s return to positive inflows suggests investor confidence remains intact.

Sustained Positive Cash Flow and Strengthened Balance Sheet

For the third consecutive quarter, APL reported positive operating cash inflows, amounting to $0.33 million in Q2 and $0.98 million for the full financial year. The company’s cash balance increased to $4.841 million, while loan debt was marginally reduced to $1.702 million. These figures reflect disciplined cash flow management and a strengthening financial position, providing a solid foundation for ongoing growth initiatives.

WCM Strategies Outperform Benchmarks

WCM Investment Management’s Large Cap and Small Cap strategies continued to impress, delivering quarterly returns of 12.95% and 22.54% respectively, well above their benchmarks of 6.20% and 11.40%. Over the year to June 2025, the Large Cap strategy returned an exceptional 34.02%, nearly doubling its benchmark’s 18.92%. Both strategies have consistently outperformed over multiple time horizons, reinforcing their appeal to investors.

APL also launched a new Class C unit of the WCM Quality Global Growth Strategy, tailored for asset consultants and managed accounts, which raised over $18 million by quarter-end. The company’s ongoing distribution efforts, including roadshows and webinars, have helped maintain strong engagement with advisers and investors.

Vinva Fund Transition and Vertium’s Steady Progress

The cessation of the distribution agreement for the Vinva funds, effective April 2025, resulted in a $300,000 termination payment to APL but is expected to have minimal impact on overall revenues, accounting for less than 5% of FY2025 income. Meanwhile, Vertium Asset Management retained its Zenith Approved rating and continues to pursue growth through adviser engagement and new initiatives, including collaboration with Mercer Age Care to offer stable income solutions.

Outlook and Strategic Focus

Despite ongoing market volatility, APL’s diversified product suite and strong partnerships position it well for future growth. The company remains focused on expanding its investor base across intermediaries and self-directed markets, while carefully managing operating cash flows. The positive momentum in fund performance and cash flow provides a promising backdrop as APL navigates the evolving asset management landscape.