WAM Strategic Value Posts 8.6% Portfolio Growth, Boosts Dividend to 6 Cents

Strong Portfolio Performance Amid Volatility

WAM Strategic Value Limited (ASX, WAR) has announced an increased fully franked full year dividend of 6.0 cents per share, reflecting a robust 8.6% growth in its investment portfolio for the financial year ended 30 June 2025. This dividend equates to a fully franked yield of 5.3%, or 7.6% when grossed up for franking credits, underscoring the company’s commitment to delivering attractive income streams to shareholders.

The portfolio’s defensive qualities were particularly evident during periods of market weakness. While the S&P/ASX All Ordinaries Accumulation Index experienced four months of negative returns, WAM Strategic Value’s portfolio outperformed in each of these months, delivering positive absolute returns in three. This resilience helped limit the portfolio’s collective decline to just 0.8%, compared to an 11.4% fall in the broader market during those drawdowns.

Strategic Positioning and Cash Management

Chairman and Lead Portfolio Manager Geoff Wilson AO highlighted the portfolio’s positioning to preserve capital amid geopolitical tensions and market volatility. The company maintained a higher-than-average cash balance of 27.6% during the year, including proceeds from the realisation of investments in Global Data Centre Group and Australian Unity Office Fund. This liquidity provides flexibility to seize new opportunities as market conditions evolve.

At year-end, equities comprised 80.5% of the portfolio, generating a weighted average return of 9.4%, while cash and equivalents contributed 4.1%. Total shareholder return, including franking credits, stood at 7.1% for the period.

Valuation and Investment Opportunity

The company reported a pre-tax net tangible asset (NTA) value of $1.26 per share, with a theoretical look-through NTA of $1.50 per share based on underlying portfolio valuations. Despite this, WAM Strategic Value’s shares traded at a significant 28.3% discount to the look-through NTA at 30 June 2025, suggesting a compelling entry point for investors seeking value in listed investment companies.

Since its inception in June 2021, the company has paid total dividends of 15.75 cents per share, or 22.5 cents including franking credits, demonstrating a consistent income track record.

Looking Ahead

WAM Strategic Value continues to offer exposure to a diversified portfolio of listed investment companies and trusts, with a focus on capital preservation and income generation. The Dividend Reinvestment Plan remains active, providing shareholders with flexible options to compound their investment.

Investors can gain further insights during the upcoming Q&A webinar scheduled for 3 September 2025, where management will discuss portfolio strategy and outlook.