Regal flags muted second-half performance fees

Résumé détaillé

Regal Partners expects to recognise at least $122.7 million in fund performance fee revenue for calendar 2026, with market volatility and weaker investment performance limiting…

Regal Partners expects to recognise at least $122.7 million in fund performance fee revenue for calendar 2026, with market volatility and weaker investment performance limiting the prospect of further material fees in the second half.

The alternative investment manager said $118.7 million in performance fees generated during the first half had crystallised and been received in cash, with a further $4 million secured between July and October. Regal does not currently anticipate additional second-half performance fees to be material relative to those already realised.

Other income, which includes fair value movements, interest and distributions from its investments, has also been affected by market conditions. Investment in Regal Asian Investments (RG8) weighed on the figure following a decline in the company's share price. However, Regal expects other income to have no material impact on normalised net profit after tax for 2026.

Despite the challenging backdrop, Regal continued to attract investor capital, recording $100 million in net inflows during October. This brought net inflows for the first 10 months of 2026 to $2.2 billion, extending its run of quarterly positive net flows to 13 consecutive quarters.

Despite Regal's subdued performance fee expectations, GQG Partners faced mounting outflows and investment losses in October, highlighting diverging fortunes among fund managers amid volatile markets.

GQG Partners reported a decline in funds under management (FUM) to US$131.6 billion at the end of October, down from US$149.2 billion a month earlier.

GQG recorded US$6.7 billion in net outflows during October, alongside US$11 billion in negative investment performance. Year-to-date net outflows reach US$32.9 billion, while investment performance contributed a modest US$600 million gain.

The contrasting updates highlight divergent flows and performance across investment managers amid volatile markets. Regal will provide further on its full-year results in February 2027.

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