L1 Group's (ASX:L1G) funds under management (FUM) stood at AU$19.06 billion at the end of June, up over 12% from AU$16.96 billion as of March 31, according to a Wednesday filing with the Australian bourse.

The company said its investment performance recovered in the June quarter after the Middle East conflict weighed on returns earlier in the year.

The initial public offering of the L1 Gold Fund (ASX:LGF) in April contributed AU$428 million in net inflows, alongside positive net client flows into L1 Long Short strategies and L1 Affiliates.

Performance fees for fiscal 2026 are expected to total between AU$162 million and AU$167 million, per the filing. The company expects to incur AU$33 million to AU$36 million in one-off costs during the fiscal second half related mostly to a Platinum integration and to the L1 Gold Fund IPO.