L1 Global Long Short Fund Reports Net Tangible Asset Backing of $1.71 Per Share

Understanding GLS: Structure and Investment Mandate

L1 Global Long Short Fund Limited is a closed-ended investment fund listed on the Australian Securities Exchange under the ticker GLS. The fund operates from its registered office at Level 45, 101 Collins Street, Melbourne, Victoria, maintaining professional investment management infrastructure. As a long-short fund, GLS employs a strategy that allows it to take both long positions (betting on price increases) and short positions (betting on price decreases) across its investment portfolio. This dual-positioning approach is designed to provide flexibility in different market environments and to potentially deliver returns that are less correlated with traditional equity market movements.

The fund structure requires regular disclosure of its net tangible asset backing to shareholders and the market. The Company Secretary, Jane Stewart, authorised the latest NTA disclosure on 22 July 2026. The fund is managed by L1 Group Limited, with Andrew Stannard serving as Chief Financial Officer and investor contact. This governance structure ensures transparency and accountability to shareholders regarding the fund’s underlying asset values and investment performance over time.

NTA Backing Per Share: Before-Tax and After-Tax Valuations

The company update released on 22 July 2026 disclosed two NTA backing figures per ordinary share as at 17 July 2026. The NTA before tax stood at $1.7139 per share, calculated before the provision for deferred tax on unrealised gains and losses in the investment portfolio. This figure represents the fund’s net tangible asset value without accounting for potential future tax liabilities that may arise from unrealised investment gains or losses. The before-tax NTA provides investors with a gross measure of the fund’s asset backing, useful for understanding the raw value of investments before tax considerations.

The NTA after tax was reported at $1.7471 per share, which is calculated after all taxes and represents a more conservative valuation that incorporates tax provisions. The difference between the before-tax and after-tax figures reflects the fund’s tax position and any deferred tax liabilities or assets. The fund emphasised that all figures are unaudited and approximate, meaning they have not been independently verified by external auditors at this stage. This disclosure allows investors to understand both the gross asset position and the tax-adjusted position, enabling more informed assessment of the fund’s true net worth on a tax-inclusive basis.

Methodology and Calculation Basis for NTA Disclosures

The distinction between NTA before tax and NTA after tax is important for investors seeking to understand the fund’s true economic position. The before-tax NTA calculation excludes the provision for deferred tax on unrealised gains and losses within the investment portfolio. This means the before-tax figure does not account for potential tax that may become payable if unrealised gains are realised, or potential tax benefits if unrealised losses are realised. This approach provides a view of the fund’s asset backing in a pre-tax state, which may be useful for comparative analysis and understanding the underlying portfolio value.

The after-tax NTA, by contrast, incorporates all tax considerations and deferred tax positions. This figure provides a more comprehensive view of the fund’s net worth from an economic perspective, as it reflects what shareholders would effectively own after all tax obligations have been settled. The fund’s disclosure methodology follows standard practice for closed-ended investment funds in Australia, where both before-tax and after-tax NTA figures are commonly provided to give investors the fullest possible picture of the fund’s position. The company noted that these figures are unaudited and approximate, which is typical for interim or regular reporting periods between formal audit cycles.

Regular NTA Disclosure and Investor Monitoring

Closed-ended investment funds like GLS typically disclose their NTA backing per share on a regular basis to provide transparency to shareholders and enable market participants to monitor the fund’s performance. These disclosures are particularly important for funds trading on the ASX, as they allow shareholders to assess whether the fund’s share price represents a premium or discount to the underlying net asset value. The gap between share price and NTA backing can signal investor sentiment, liquidity conditions, and market perception of the fund’s investment strategy. Regular NTA reporting helps maintain confidence in the fund’s operations and provides a mechanism for shareholders to evaluate their investment over time.

The timing and frequency of NTA disclosures varies, but GLS has released this update as at 17 July 2026, providing investors with near-current information about the fund’s asset backing. For investors holding units or shares in closed-ended funds, NTA tracking is an essential part of investment monitoring, as it forms the basis for understanding whether the fund’s market valuation reflects its true underlying value. This company update represents the fund’s commitment to regular transparency and disclosure, which is a key feature expected of listed investment funds in the Australian market.

Long-Short Strategy Market Context and Fund Positioning

The long-short investment strategy employed by GLS is designed to navigate varying market conditions by combining bullish and bearish positions. A long position involves purchasing securities with the expectation that their value will increase, while a short position involves borrowing and selling securities with the expectation of buying them back at a lower price. By combining these approaches, long-short funds aim to generate returns across market cycles and reduce overall portfolio sensitivity to broad market direction. This strategy can be particularly valuable during volatile periods or in sideways markets where traditional long-only funds may struggle to deliver positive returns.

The fund’s ability to execute this strategy depends on market conditions, the availability of securities to short, and the skill of the investment management team in identifying opportunities. The NTA backing of $1.7139 (before tax) and $1.7471 (after tax) reflects the fund’s current position after all long and short positions have been marked to market value. Investors evaluating GLS should consider how the fund’s strategy aligns with their investment objectives, risk tolerance, and market outlook. The fund’s performance will be influenced by factors including equity market volatility, sector rotation, individual security selection, and the effectiveness of the short portfolio in hedging market risk.

Comparison of Before-Tax and After-Tax NTA and Tax Implications

The relationship between before-tax NTA of $1.7139 and after-tax NTA of $1.7471 indicates that the fund’s tax position is contributing positively to the after-tax valuation. This suggests that either the fund has deferred tax assets arising from unrealised losses, or that the tax calculation methodology results in a net positive adjustment to the NTA figure. Understanding this relationship is important for investors, particularly those in high-income tax brackets or those holding the fund in tax-advantaged accounts. The after-tax figure may be more relevant for individual investors seeking to understand their effective economic interest in the fund after tax considerations.

For institutional investors and those in specific tax situations, the before-tax figure may provide additional useful information for tax planning purposes. Tax liabilities within investment funds can arise from realised gains on securities sales, dividend and interest income, and other income sources. The deferred tax position reflects management’s estimate of potential tax that may become payable if unrealised gains are realised in the future. The company’s methodology of providing both figures ensures that investors with different tax circumstances can select the most relevant metric for their own analysis and decision-making. This dual disclosure reflects best practice in the investment fund industry.

Unaudited Status and Investor Reliance Considerations

The company emphasised in the announcement that all figures are unaudited and approximate. This is an important qualification for investors to understand, as it means the NTA figures have not been verified by independent external auditors and may be subject to revision. Unaudited figures are typically provided on an interim basis between formal annual or semi-annual audit cycles. The approximate nature of the figures may reflect rounding, the use of provisional valuations for less liquid holdings, or interim calculations that may be refined upon completion of full audits. Investors should be aware that final audited figures, when published, may differ from these interim unaudited disclosures.

Despite the unaudited status, these figures remain important for investors seeking current information about the fund’s net asset position. The qualification regarding unaudited and approximate status is standard practice in the investment fund industry and reflects regulatory requirements for transparency. Investors should treat these figures as the best available estimate of NTA at the calculation date, while recognising that they may be subject to minor adjustment or refinement. For investment decisions of material significance, investors should consider requesting confirmation from the fund manager or waiting for audited financial statements where appropriate. The provision of both before-tax and after-tax figures, even in unaudited form, provides investors with useful information for monitoring the fund’s performance and value.

Fund Management and Investor Relations Structure

The fund is managed by L1 Group Limited, a professional investment management firm. Andrew Stannard, as Chief Financial Officer, serves as the primary investor contact and is available to address shareholder inquiries at telephone +61 2 9255 7500 or fax +61 2 9254 5555. This investor relations infrastructure provides shareholders with direct access to fund management and the ability to obtain clarification or additional information regarding the fund’s operations and performance. Jane Stewart, the Company Secretary, authorised the NTA disclosure, reflecting the formal governance procedures that surround financial reporting and shareholder communications.

The fund maintains a dedicated website at https://l1.capital/GLS where investors can access additional information about the fund’s strategy, performance, and holdings. The registered office location at Level 45, 101 Collins Street, Melbourne provides a professional base for the fund’s operations. This management structure and investor relations approach ensures that shareholders have clear channels for communication and access to information. The provision of specific contact details and accessible investment contact in the announcement reflects the fund’s commitment to shareholder engagement and transparency. Investors seeking additional information about the fund’s portfolio composition, investment approach, or performance should contact the fund directly through the provided channels.

Share Price Premium or Discount Assessment Opportunities

With NTA backing per ordinary share disclosed, investors can now assess whether GLS shares are trading at a premium or discount to this underlying net asset value. If the share price is trading below the NTA (at a discount), it may suggest that the market is valuing the fund’s assets at less than their intrinsic value, potentially presenting an opportunity for value-oriented investors. Conversely, if shares trade above the NTA (at a premium), the market may be assigning a positive value to the fund’s investment strategy, management, or growth prospects. The magnitude and persistence of any premium or discount can signal market sentiment towards the fund’s strategy and management team.

Closed-ended funds like GLS can trade at significant premiums or discounts to NTA depending on various factors including the perceived quality of the fund’s investment strategy, the track record of the management team, market liquidity conditions, and broader investor appetite for the fund’s strategy. Long-short strategies may trade at different valuations depending on whether investors view the strategy as attractive in the current market environment. Investors comparing GLS to other listed investment funds or direct equity investments should consider both the NTA backing and the share price in their analysis. This company update provides the necessary data point for conducting such premium or discount analysis at the calculation date of 17 July 2026.