Phil King surrenders VGI portfolio as it swings to $17.5m loss
Make us a preferred source
Make us a preferred source on Google
More news: The VG1 portfolio generated a net loss of 3% in FY25, attributing the poor performance in part to a horror March quarter but maintaining a total dividend of 12 cents for the year.
Company revenue plummeted to $6.94 million in FY25, tumbling 95% from the $135.28 million recorded in FY24.
It pushed the company into the red, posting an after-tax loss of $17.56 million, equivalent to a 6.7 cent loss per share. The year prior it posted a $64.14 million profit.
What they said: In a letter to shareholders chair David Jones called the result "disappointing" but reiterated that the company's $246 million profit reserve meant it intended to continue paying dividends of at least six cents every six months.
"Key contributors to returns in FY25 included Rightmove, Entain and London Stock Exchange Group (LSEG), with the positions in Rightmove and LSEG having subsequently been exited," Jones said.
"On the flip side, the March quarter of FY25 was a difficult performance period for the VG1 portfolio after an investment in biotech company Opthea was written down to zero after unsuccessful phase three clinical trials. This was a disappointing outcome for VG1 investors and offset some of the positive contributions from sectors such as Financials and Communication Services."
Phil King surrenders VGI portfolio amid poor performance
The news: Regal Funds Management chief investment officer Phil King will step back from managing the VGI's global listed investment vehicle VG1 with PM Capital founder Paul Moore to take on the portfolio amid poor performance.
VG1 recorded a loss of $28.2 million before tax, down from an $88.4 million profit the year prior.
The context: It comes as Regal Partners, which manages VG1, continues to realign its investment responsibilities, expanding Moore's remit while reducing King's following the write down of Regal's investment in speculative biotech company Opthea.
Regal acquired VGI Partners in June 2022, merging the entities into Regal Partners.
In an update to the ASX, VG1 said its investment guidelines were not changing and that portfolio managers Marco Anselmi and Henry Hill would continue on as portfolio managers.
What they said: "Paul joined Regal Partners as CIO [of] global equities in 2023 following the acquisition of the PM Capital business and we look forward to the long-term stewardship and investment oversight he will bring to the VG1 portfolio for the years ahead," VG1 chair David Jones said.
"As a result of this realignment of responsibilites, Philip King, CIO [of] long/short equities, will step down from investment oversight of VG1, focusing on Regal's existing domestic and Asia-focused long/short equity strategies. The Board thanks Phil for his management and oversight of the VG1 portfolio since June 2023."
