WAM Leaders has reported a strong performance for the six months ending December 31, with its investment portfolio increasing by 8.4 per cent. This result significantly outperformed the S&P/ASX 200 Accumulation Index, which grew by 3.6 per cent during the same period. WAM Leaders is a listed investment company focusing on investing in the largest companies listed on the Australian Securities Exchange. The company aims to deliver investors a stream of fully franked dividends, along with capital growth.
The company’s board has declared a fully franked interim dividend of 4.8¢ per share. This dividend equates to an annualised yield of 7 per cent, or a 10 per cent grossed-up yield when including franking credits. Shareholders also benefited from a total shareholder return of 16.8 per cent for the half-year, inclusive of franking credits. As of December 31, the pre-tax net tangible assets (NTA) stood at $1.32 per share, with the share price closing near NTA parity.
WAM Leaders experienced substantial growth in profitability, with operating profit before tax surging by 185.4 per cent to $137 million. The after-tax profit also saw a significant increase, jumping by 157.2 per cent to reach $99.9 million. Lead portfolio manager Matthew Haupt credited this outperformance to strategic early positioning in the materials sector.
Furthermore, Haupt noted the company’s anticipation of the Reserve Bank of Australia’s hawkish pivot as a contributing factor to the positive results. Maintaining a fully invested stance throughout the period also played a crucial role in the company’s success. This proactive approach allowed WAM Leaders to capitalise on market opportunities and deliver strong returns for its investors.
