Wilson Asset Management’s active listed investment company (LIC), WAM Active, has reported an exceptional 2026 financial year, delivering an impressive 75.5 per cent return on its investment portfolio. This significantly outperformed the S&P/ASX All Ordinaries Accumulation Index by nearly 70 per cent, marking the fund’s best performance since its 2008 launch. WAM Active aims for long-term capital growth through undervalued growth companies. The record result stemmed from portfolio manager Shaun Weick’s crucial February decision to rapidly increase cash holdings. This was prompted by concerns over agentic artificial intelligence disrupting software businesses and geopolitical tensions, particularly the US attack on Iran, threatening gold exposure.
Weick built a 35 per cent cash pile to assess energy price spikes from Iran’s closure of the Strait of Hormuz. He observed that modern markets feature sharp sell-offs followed by swift rebounds. Once stability became clear, the cash was aggressively redeployed, shrinking the pile to just 5 per cent within days, primarily into companies positioned for the burgeoning AI boom. A significant contributor was its 4 per cent position in Firmus Technologies, an AI data centre developer. Weick anticipates a substantial valuation increase for Firmus ahead of its anticipated initial public offering, viewing this as indicative of a healthier Australian IPO market.
Beyond Firmus, WAM Active diversified its portfolio across the global AI supply chain. Investments included rare earth companies like Lindian Resources and Viridis Mining, and exposure to rebounding lithium markets via Core Lithium and Liontown Resources, and copper assets. The fund also targeted digital infrastructure enablers and healthcare companies leveraging AI, such as Artrya and EchoIQ. This strong outperformance allowed WAM Active to declare a fully franked total dividend of 9.4 cents per share for FY26, including a special dividend of 2 cents. The LIC traded at a 9.5 per cent discount to its net tangible assets as of June 30.
