VGI Partners Posts $17.6M Loss, Upholds 6c Dividend and $73M Buy-Back
VGI Partners Global Investments Limited reported a $17.6 million net loss for FY25 but maintained its dividend policy and executed a $73 million share buy-back, signaling confidence amid market challenges.
- Net loss after tax of $17.6 million for FY25
- Net portfolio return of -3.0%, impacted by biotech write-down
- Maintained fully franked dividend of 6.0 cents per share
- Completed $73.4 million on-market share buy-back
- Transitioned CIO oversight from Phil King to Paul Moore
Financial Performance and Dividend Policy
VGI Partners Global Investments Limited (ASX, VG1) closed the 2025 financial year with a net loss after tax of $17.6 million, a notable reversal from the prior year's profit of $64.1 million. The company’s net portfolio return was -3.0%, reflecting a challenging investment environment and specific setbacks, including a full write-down of its investment in biotech firm Opthea following unsuccessful clinical trials.
Despite the loss, VG1 reaffirmed its commitment to shareholder returns by maintaining its dividend policy, declaring a fully franked final dividend of 6.0 cents per share. This follows an interim dividend of the same amount paid earlier in the year, marking an increase from the previous 5.0 cents per half-year policy. The total dividend yield stands at 6.7% based on the closing share price, with a grossed-up yield of 9.6% when factoring in franking credits.
Capital Management and Share Buy-Back
Capital management remains a strategic focus for VG1. During FY25, the company executed an on-market share buy-back of approximately 39.4 million shares, costing $73.4 million. This program, approved by shareholders in late 2024, aims to enhance liquidity and deliver accretive value by repurchasing shares at a discount to net tangible assets (NTA).
At year-end, VG1’s post-tax NTA per share declined by 7.6% to $2.06, reflecting portfolio losses and market volatility. The share price discount to NTA narrowed to 13%, an improvement from over 20% in mid-2022, underscoring progress since the merger with Regal Funds Management.
Portfolio Positioning and Management Changes
VG1 increased its gross exposure limit from 150% to 200% in July 2024 to provide greater flexibility in portfolio management. The actual gross exposure peaked near 200% in August 2024 before settling at 139% by June 2025. The portfolio remains concentrated in Financials, Materials, and Information Technology sectors, with top holdings including Taiwan Semiconductor Manufacturing Co., Vault Minerals, and Entain.
In a significant management update, the company transitioned Chief Investment Officer oversight from Phil King to Paul Moore, who brings extensive global equities experience from Regal Partners and PM Capital. The Board expressed confidence that this leadership change will support portfolio performance and help close the discount to NTA.
Outlook and Investor Engagement
VG1’s Board cautions that investment returns are subject to market fluctuations and that past performance is not indicative of future results. The company continues to emphasize disciplined capital management, consistent dividend payments, and active portfolio oversight. Shareholders are encouraged to participate in the Dividend Reinvestment Plan to further align interests.
Looking ahead, VG1 plans to maintain its capital management initiatives, including selective share buy-backs, and to engage shareholders through its upcoming Annual General Meeting scheduled for November 2025.
Bottom Line?
VG1’s FY25 results underscore resilience amid headwinds, with capital management and leadership changes setting the stage for recovery.
Questions in the middle?
- How will the new CIO’s strategy influence VG1’s portfolio returns in volatile markets?
- What impact will the biotech write-down have on future investment risk assessments?
- Can VG1 sustain its increased dividend policy if market conditions remain challenging?
