WAM Capital (WAM) H1 2025 earnings summary

Executive summary

• WAM Capital, WAM Research, WAM Microcap, and WAM Active all delivered strong outperformance over the past 12 months, with WAM Capital up 33% versus the market's 15% rise and all funds now trading at a premium to NTA.

• Interim dividends were declared across all funds, with high franking and attractive annualised yields.

• Profit reserves have been rebuilt, providing visibility for future dividends.

• The Founders Fund was launched, enhancing access to management and founder insights.

Financial highlights

• WAM Capital: +14.9% portfolio performance, +9.4% outperformance vs. S&P/ASX Small Ordinaries Accumulation Index, 7.75cps interim dividend (60% franked).

• WAM Research: +21.3% portfolio performance, +15.8% outperformance, 5.0cps interim dividend (60% franked).

• WAM Microcap: +14.4% portfolio performance, +8.9% outperformance, 5.3cps fully franked interim dividend.

• WAM Active: +17.5% portfolio performance, +15.2% outperformance vs. Bloomberg AusBond Bank Bill Index, 3.0cps fully franked interim dividend.

• Dividend coverage and profit reserves have improved, with WAM Capital's reserve now covering over three dividends.

Outlook and guidance

• All funds continued strong year-to-date performance as of 31 January 2025, with WAM Research leading at +26.6%.

• Expect continued volatility but see opportunities in high-quality, undervalued growth companies, especially as interest rate cuts are anticipated.

• M&A activity expected to increase, especially from private equity, as market conditions stabilize.

• No plans to increase WAM Capital's dividend despite strong reserves; focus remains on maintaining sustainability.