WAM Active Posts 26.4% Portfolio Growth, 6.7% Dividend Yield in FY2025
WAM Active Limited reported a robust 26.4% increase in its investment portfolio for FY2025, significantly outperforming key benchmarks, while maintaining its fully franked dividend at 6.0 cents per share.
- Investment portfolio up 26.4% in FY2025
- Outperformance of cash and ASX All Ordinaries indices by wide margins
- Fully franked full year dividend maintained at 6.0 cents per share
- Portfolio turnover highest since inception at 8.8 times
- Active participation in 41 corporate transactions including major IPOs
Strong Portfolio Performance
WAM Active Limited (ASX, WAA) has once again demonstrated its investment prowess with a 26.4% increase in its portfolio value for the financial year ending June 30, 2025. This performance notably outpaced the Bloomberg AusBond Bank Bill Index by 22.0% and the S&P/ASX All Ordinaries Accumulation Index by 13.2%, underscoring the fund's ability to deliver superior returns in a competitive market.
Since its inception in 2008, WAM Active has achieved an impressive annualised return of 11.6%, consistently outperforming benchmark indices and rewarding shareholders with a steady stream of fully franked dividends.
Dividend Stability Amid Active Trading
The Board declared a fully franked final dividend of 3.0 cents per share, maintaining the full year dividend at 6.0 cents per share. This translates to a dividend yield of 6.7%, or 9.6% when grossed-up for franking credits, reflecting the company’s commitment to providing shareholders with a reliable income stream.
Lead Portfolio Manager Oscar Oberg highlighted the fund’s nimble approach, noting that the portfolio turnover reached 8.8 times during the year, the highest since inception. This active trading strategy capitalised on market mispricings and corporate events, including participation in 41 transactions such as IPOs and capital raisings.
Capitalising on Market Opportunities
Among the notable IPOs in June 2025 were the relisting of Virgin Australia Holdings and the primary listing of Greatland Resources, both of which closed materially above their issue prices. These successful entries not only contributed to the portfolio’s strong performance but also signal a positive outlook for deal flow in the near term.
WAM Active’s diversified portfolio spans sectors including financials, industrials, and information technology, with top holdings such as Keybridge Capital, ALS Limited, and Dalrymple Bay Infrastructure. This sectoral balance supports the fund’s objective of delivering positive returns with low volatility.
Looking Ahead
With $6.0 billion in funds under management and a seasoned investment team boasting over 250 years of combined experience, WAM Active is well-positioned to continue its active trading strategy. The company’s focus on capital preservation, income generation, and market responsiveness remains central to its investment philosophy.
Bottom Line?
WAM Active’s strong FY2025 results and steady dividend underscore its active strategy’s resilience, but sustaining high turnover and deal flow will be key to future gains.
Questions in the middle?
- Can WAM Active maintain its high portfolio turnover without increasing risk?
- How will upcoming IPOs and corporate transactions influence portfolio returns?
- What impact might market volatility have on WAM Active’s flexible investment mandate?
