WAM Global’s Investment Portfolio Outperforms MSCI by 0.9%, Dividend Rises
WAM Global Limited outperformed the MSCI World Index in FY2025 with a 19.4% portfolio gain, enabling a higher fully franked dividend of 17 cents per share. The company’s strong results reflect strategic investments in undervalued global growth stocks amid volatile markets.
- Investment portfolio rose 19.4%, beating MSCI World Index’s 18.5%
- Fully franked full year dividend increased to 17.0 cents per share
- Operating profit before tax surged to $147.6 million, up from $107.3 million
- Total shareholder return reached 22.1%, including franking credits
- Portfolio diversified across sectors and geographies, with US focus
Strong Portfolio Performance Amid Global Market Rally
WAM Global Limited (ASX – WGB) has reported a robust 19.4% increase in its investment portfolio for the 2025 financial year, narrowly outperforming the MSCI World Index (AUD), which rose 18.5%. This outperformance underscores the effectiveness of WAM Global’s strategy of investing in high-quality, undervalued growth companies with clear catalysts for value creation.
Chairman Geoff Wilson AO praised the investment team’s efforts, highlighting that the portfolio’s resilience during periods of market volatility; such as the tariff announcements in April; allowed the company to selectively add to positions and initiate new investments. This disciplined approach contributed to a significant rise in operating profit before tax to $147.6 million, up from $107.3 million the previous year.
Dividend Increase Reflects Confidence and Strong Cash Flow
Reflecting the strong financial results, the Board declared an increased fully franked full year dividend of 17.0 cents per share, which includes a special dividend of 4.0 cents paid in July 2025. This dividend yield of 5.1% (fully franked) and a grossed-up yield of 7.3% compares favourably against global equity market yields, which remain subdued at around 1.7%.
WAM Global’s share price also appreciated from $2.21 to $2.50 over the year, contributing to a total shareholder return of 22.1% when including dividend franking credits. The narrowing of the share price discount to net tangible assets (NTA) from 7.7% to 4.0% signals growing investor confidence in the company’s value proposition.
Portfolio Composition and Strategic Positioning
The portfolio remains heavily weighted towards the United States (67.8%), with significant exposure to sectors such as capital markets, information technology, and healthcare. Top holdings include global leaders like Intuit, SAP, Alphabet, Visa, and Intercontinental Exchange, reflecting a focus on companies with strong growth prospects and market leadership.
Lead Portfolio Manager Catriona Burns expressed optimism about the outlook for FY2026, citing the portfolio’s strategic positioning to benefit from thematic drivers that can enhance earnings power over time. The team’s ability to navigate market volatility and identify quality investments remains central to their approach.
Looking Ahead
As WAM Global prepares for the upcoming final dividend payment in November 2025, investors will be watching closely to see if the company can sustain its momentum amid evolving global economic conditions. The firm’s commitment to delivering both capital growth and a reliable income stream positions it well in a competitive investment landscape.
Bottom Line?
WAM Global’s strong FY2025 results and dividend boost set the stage for a closely watched 2026 as market dynamics evolve.
Questions in the middle?
- How will WAM Global navigate potential geopolitical and inflation risks in FY2026?
- Can the company maintain its dividend growth amid changing global interest rates?
- What new sectors or geographies might the portfolio target to sustain outperformance?
