WAM Microcap (WMI) investor relations material

Executive summary

• Interim results for four managed funds were presented, highlighting WAM Capital, WAM Microcap, and WAM Research, with operating profit before tax for the half year ended 31 December 2025 at $43.2 million, down from $45.1 million in the prior year.

• Operating profit after tax was $31.0 million, compared to $32.5 million for the same period last year.

• Investment portfolio increased 11.4% over six months, underperforming the S&P/ASX Small Ordinaries Accumulation Index, which rose 17.4%.

• Total shareholder return for the period was 16.2%, including franking credits.

• The period since October has been described as the toughest in over a decade, with rapid market shifts, high inflation, and significant impacts from AI and geopolitical risks.

Financial highlights

• Net realised and unrealised gains on financial investments and foreign currency totaled $42.7 million (2024: $49.9 million).

• WAM Active fund performed strongly, aided by successful capital raising and resource sector investments.

• WAM Capital's share price premium to NTA reached 30% by February, despite a decline in net tangible assets.

• Cash and cash equivalents at period end were $34.2 million (June 2025: $33.9 million), with cash balances at 20%, the highest since COVID.

• Net assets increased to $412.7 million (June 2025: $394.9 million).

Outlook and guidance

• The Board remains committed to paying a stream of fully franked dividends, subject to profits reserves and franking credits.

• The team expects the current premium to NTA to persist until the next dividend, after which it may contract, mirroring past cycles.

• Valuations are seen as depressed, presenting significant investment opportunities once market stability returns.

• Long-term investment process and focus on fundamentals are emphasized as key to navigating current volatility.

• No change in principal investment activity is expected in the future.