Australia · Delayed Price · Currency is AUD WAM Capital Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 saw significant underperformance and a sharp dividend cut due to depleted profit reserves, with the share price falling to NTA. Management is focused on rebuilding reserves and restoring dividend growth, while navigating ongoing macroeconomic and sector-specific challenges.
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Small-cap industrials have faced severe headwinds since October, underperforming resources and large caps, but management remains optimistic about long-term opportunities due to strong fundamentals and high cash reserves. Dividend sustainability is closely tied to profit reserves, and portfolio adjustments favor defensive and undervalued stocks.
Fiscal Year 2025
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The AGM highlighted strong portfolio outperformance, continued high dividends, and robust board expertise. Shareholders discussed dividend franking, market risks, and potential capital raising, with all resolutions put to vote and results to be released later.
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Portfolios are positioned for outperformance through active management, with a focus on small caps, real estate, and AI-driven global growth. Dividend yields remain strong, and social impact initiatives continue to support youth and community programs.
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All four small-cap funds outperformed the market over the past year, rebuilding profit reserves and returning to NTA premiums. Volatility remains high, but strong dividend coverage and selective stock picking, M&A activity, and the launch of the Founders Fund position the portfolios for continued resilience and growth.
Fiscal Year 2024
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Strong outperformance across all funds has been achieved despite small-cap headwinds, with improved profit reserves and management signaling confidence through share purchases. High conviction stock picks and sector themes include AI, mining services, and aged care, while the team expects interest rate cuts to benefit small caps and listed investment companies.
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The AGM covered strong recent portfolio performance, ongoing dividend sustainability, and board re-elections. Shareholders engaged on tax, franking, and share price issues, with management outlining strategies for future growth and improved communication.
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All managed funds outperformed their benchmarks in FY2024, with WAM Capital and WAM Research delivering standout results. Despite strong performance, high dividends have pressured NTAs, and share price premiums have normalized. The outlook for small caps is positive, contingent on interest rate cuts.