Navigator Global Investments Ltd (ASX: NGI) shares are pushing higher on Monday.
In midday trade, the Navigator share price is up 6% to $2.43. That extends its weekly gain to almost 20%, placing the stock back near the upper end of its recent range.
The move follows a fresh update released to the market before the open.
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Funds under management keep climbing
Navigator reported ownership-adjusted assets under management (AUM) of US$31.6 billion at the end of March, up 9% over the quarter and 16% across the past year.
Growth was driven by a mix of inflows and investment performance across its platform.
The Lighthouse Partners business remains the largest contributor, with AUM rising 8% during the quarter to a record US$18.7 billion. Over the past 12 months, that figure is up 17%.
Performance across key hedge fund strategies stayed positive, with several strategies delivering returns above benchmarks over both 1 and 5-year periods.
Net inflows also played an important role. Around US$1.2 billion came into the business during the quarter, with most directed toward managed account services.
Strategic platform and private markets stand out
In addition, the NGI Strategic platform moved higher, with AUM increasing 10% over the quarter to US$12.9 billion.
Within that, private markets stood out. AUM in that segment rose 20% to US$3.6 billion, supported by the addition of a Canada-based technology investor during the period.
Across the broader strategic platform, AUM growth over the past year has reached 57%, reflecting both new partnerships and market performance.
At the firm level, total AUM increased 17% during the quarter to US$98 billion.
Earnings outlook softens despite AUM growth
Despite the lift in AUM, the earnings outlook points to some pressure in the near-term.
Management expects FY26 adjusted EBITDA to come in below FY25 levels. That reflects the timing of inflows during the year and a greater weighting toward lower fee products within the mix.
Performance fees are also expected to normalise after stronger contributions in the prior period.
The update also pointed to ongoing demand from institutional investors seeking exposure to alternative asset classes.
Foolish bottom line
The latest move in the share price lines up with continued growth across the platform.
AUM expansion remains one of the key drivers for this business, particularly when it is supported by inflows instead of just market movements.
The strength in private markets and strategic partnerships is also drawing attention, given how quickly that segment has scaled.
After a solid run over the past week, investors appear more focused on AUM growth than Navigator's earnings outlook.
