WAM Strategic Value (WAR) investor relations material

Executive summary

• Focus remains on buying undervalued companies with identifiable catalysts, holding until value is realized, and actively managing the portfolio, resulting in strong investment performance.

• Portfolio delivered a 14.9% return for calendar year 2025 and 9.8% over the last six months, outperforming the S&P/ASX All Ordinaries Accumulation Index by 5.4%.

• Operating profit before tax rose to $16.0M and after tax to $12.8M for the half year ended 31 December 2025, reflecting a 200.7% and 158.6% increase, respectively.

• Dividend increased to a fully franked interim dividend of 3.25 cents per share, with a plan to continue growing fully franked dividends over time.

• Defensive portfolio characteristics highlighted, with strong downside protection and significant upside capture.

Financial highlights

• Portfolio up 14.9% year-over-year and 9.8% over the last six months, with annualised performance since inception at 8.1%.

• Net realised and unrealised gains on financial investments and FX: $14.7M; revenue from operating activities: $7.1M.

• Basic and diluted EPS: 7.11 cents; net assets at 31 December 2025: $239.1M.

• Dividend coverage at 80% from portfolio yield, with AUD 0.078 per share grossed up for franking credits.

• Share price discount to NTA narrowed from 14.6% to 10%-11.7% during the period.

Outlook and guidance

• Expectation that share price discount to NTA will continue to narrow, aiming for parity or premium, with management confident in ongoing dividend sustainability.

• Portfolio positioned to capitalize on undervalued asset opportunities in 2026 and beyond.

• NTA at AUD 1.33, look-through NTA at AUD 1.51, targeting share price in the high AUD 1.40s.