How Phil King's Regal Funds mastered the ASX index inclusion trade
The closely watched fund manager’s knack for backing future ASX 200 and 300 contenders drives its performance — even at the risk of a few blowups.
Picking the next ASX company destined for the index is as much art as science – and one Regal, Australia’s most-talked about fund manager, appears to have mastered as it chases record outperformance.
With an uncanny track record of picking the next index inductees, Phil King’s small cap fund achieved a gross return 43.3% in the 12 months to July with Regal itself expecting to rake in more than $55 million in annual performance fees.
“What Regal has done better than anyone else in the market is identify potential ASX 300 candidates, irrespective of the business or sector, and cornerstone their capital raises which allows them to get set in size,” one Australian fund manager, who spoke on the condition of anonymity, told Capital Brief.
“More often than not, Regal is often the first or second largest shareholder in companies going into the index. They’ve gotten there by following the market and getting placements, ingratiating themselves with the brokers and with the companies along the way.”
