WAM Strategic Value (WAR) H2 2025 earnings summary

Executive summary

• Portfolio delivered an 8.6% return for FY2025, outperforming the market during periods of volatility and generating an operating profit before tax of $12.4m.

• Fully franked dividends since inception total 15.75 cps, or 22.5 cps including franking credits, with the full year dividend increasing to 6.0 cps and a yield of 5.3%.

• Defensive positioning and high cash levels preserved capital amid geopolitical tensions and market drawdowns.

• Share price trades at a discount to NTA (AUD 1.26), with a look-through asset value of up to AUD 1.52, and management is focused on closing this gap through shareholder engagement and portfolio realization.

Financial highlights

• Pre-tax NTA at 30 June/31 July 2025 was AUD 1.26 per share; look-through NTA was up to AUD 1.52 per share.

• Portfolio returned 8.6% for FY2025, outperforming the S&P/ASX All Ordinaries Accumulation Index during market drawdowns.

• Fully franked dividend yield was 5.3%, with a grossed-up yield of 7.6% based on a $1.13 share price.

• Total shareholder return for the period was up to 5.7%, or 7.1% including franking credits.

• Cash position at end of June 2025 was 19.5%, with an average of 27.6% during FY2025, reflecting a cautious approach.

Outlook and guidance

• Management expects to continue realizing value from discounted assets and is confident the share price will eventually trade at NTA or a premium.

• Ongoing focus on tightening the share register, communicating with shareholders, and deploying cash selectively as market volatility may present new opportunities.

• Dividend payment dates for the 3.0cps fully franked final dividend are set for October 2025.