Associate Global Partners - Quarterly Activity Report for June 2024
ASSOCIATE GLOBAL PARTNERS LIMITED (APL) Share Update July 2024 Wednesday 31st
Associate Global Partners Reports Positive Growth in Funds Under Management
Associate Global Partners Limited (ASX: APL) has released its quarterly activity report for the period ending 30 June 2024, highlighting significant growth in Funds Under Management (FUM) and positive cash flow.
Instant Summary:
- FUM increased by $12.4 million, reaching $1.292 billion as of 30 June 2024.
- Positive net operating cash flow of $0.346 million for the June 2024 quarter.
- Total cash balance of $4.183 million, with debt standing at $1.252 million.
- Key appointments made to strengthen the distribution team.
FUM Update and Quarterly Flows
Total funds under management (FUM) as at 30 June 2024 was $1.292 billion. By 29 July 2024, this figure had increased to $1.313 billion. The growth in FUM was driven by the Company's broader product suite, which offset volatile market conditions, particularly for global growth equities.
Net inflows for the quarter totaled $37.4 million, with significant contributions from the launch of the Vinva Global Systematic Equities Fund and the Vertium Equity Income Fund.
Business Activities Update
The Company continued its extensive distribution and marketing activities to support FUM growth, particularly for the WCM Large Cap and Small Cap strategies. Despite volatile market conditions, both strategies performed well against their benchmarks over longer periods.
In addition, the Company successfully launched the Vinva Fund in May 2024, which received a 'Recommended' rating from Lonsec Research and is now available on several wealth management platforms.
Financial Update
Total cash receipts from customers were $2.410 million for the June 2024 quarter, significantly higher than the $1.770 million reported in the March 2024 quarter. This increase was due to the timing of management fee receipts and payments to underlying managers.
Operating payments saw a slight increase, primarily due to higher product costs, including audit fees and research platform costs. However, other costs were well-contained. Interest income from the Company's cash balances also increased due to the timing of interest income from term deposits.
Overall, the Company reported a positive net operating cash flow of $0.346 million, an improvement from the $0.267 million net operating cash outflow in the March 2024 quarter.
The positive growth in FUM and the Company's ability to generate positive net operating cash flow are likely to boost investor confidence. The strengthened distribution team and successful launch of new funds indicate a strong pipeline for future FUM growth. However, the volatile market conditions for global growth equities remain a concern.
Investor Reaction:
Analysts are likely to view the positive growth in FUM and the Company's ability to generate positive net operating cash flow favorably. The successful launch of new funds and strengthened distribution capabilities are also positive indicators. However, the ongoing volatility in global growth equities may temper some of the enthusiasm.
Conclusion:
Investors should keep an eye on Associate Global Partners' future performance, particularly in light of the positive growth in FUM and the Company's strong distribution capabilities. The Company's ability to navigate volatile market conditions will be crucial in maintaining investor confidence.