Wam Leaders (WLE) H2 2024 earnings summary

Executive summary

• Portfolio returned 2.8% for the year, underperforming the index, but delivered a 12.5% annualized return since inception in May 2016, outperforming the S&P/ASX 200 Accumulation Index by 3.6% per annum as of 30 June 2024.

• Fully franked full year dividend for FY2024 set at 9.2 cents per share, with a 7.2% yield based on the 9 September 2024 share price.

• Profits reserve at 30 June 2024 covers 3.2 years of dividends before payment of the final dividend.

Financial highlights

• Final fully franked dividend of 4.6 cents per share declared for FY2024.

• Pre-tax NTA per share at 30 June 2024 was $1.34.

• Dividends paid since inception total 48.75 cents per share.

• Grossed-up dividend yield stands at 10.3%.

• Average cash holding was 10.7% since inception.

Outlook and guidance

• Anticipates a shift from interest rate hikes to cuts, with market pricing in a soft landing, though risks of a hard landing remain.

• Australia faces moderate recession pressures, with mixed economic indicators.

• US Federal Reserve implied rates are expected to decline from 5.33% in July 2024 to below 3% by July 2025.

• Defensive tilt in portfolio expected to benefit as market breadth increases and valuations normalize.

• Monitoring for a potential inflection point in market sentiment and sector rotation, especially from banks to resources.