Regal Partners shares slide on drop in funds under management
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More news: Regal Partners shares tumbled at market open after the investment manager saw $1.5 billion slashed from its funds under management during the March quarter.
Regal shares were down 4.8% to $1.80 at 10:30am AEST, extending losses of more than 50% since the turn of the year.
Regal Partners reports $1.5b drop in FUM during March quarter
The news: Regal Partners saw funds under management (FUM) slide 8.3% in the March quarter, as weaker market conditions drove a negative investment performance of $540 million.
The numbers: The Phil King-led fund manager reported quarterly FUM of $16.5 billion, down from $18 billion at the end of the December.
Beyond the negative investment performance, Regal recorded a $1.1 billion drop in FUM due to a combination of distributions, dividends, buybacks and adverse foreign exchange movements from a stronger Australian dollar.
Net inflows for the quarter totalled $149 million, reflecting favourable returns from a range of strategies.
The context: Regal said the negative investment performance reflected weaker market conditions during the quarter and included a write-down to zero of its 30% equity investment in biotech company Opthea, which was held in a number of Regal's long/short equity strategies.
Regal shares slumped last month after ASX- and Nasdaq-listed small cap Opthea said there was "material uncertainty" of its "ability to continue as a going concern" following a failed clinical trial.
The source: ASX
