WAM Alternative Assets reported modest profit growth for FY2025, raised its fully franked final dividend by 15.4%, and outlined a strategic shift towards growth investments in its diversified alternative assets portfolio.
- Revenue up 1.2% to $11.9 million; net profit after tax up 1.8% to $6.23 million
- Investment portfolio grew 5.3% in FY2025 and 8.9% per annum since 2020
- Fully franked final dividend increased to 3.0 cents per share, full year dividend at 5.7 cents
- Portfolio diversification across private equity, infrastructure, real estate, agriculture, water rights, and private debt
- Board urges shareholders to reject resolution to terminate Investment Management Agreement at upcoming AGM
Financial Performance and Dividend Growth
WAM Alternative Assets Limited has delivered a steady financial performance for the year ended 30 June 2025, posting a 1.2% increase in revenue to nearly $11.9 million and a 1.8% rise in net profit after tax to $6.23 million. Reflecting confidence in the portfolio's resilience and income-generating capacity, the company declared a fully franked final dividend of 3.0 cents per share, marking a 15.4% increase over the prior year. This brings the fully franked full year dividend to 5.7 cents per share, translating to a dividend yield of 6.3% and a grossed-up yield of 9.0% when accounting for franking credits.
Portfolio Revitalisation and Growth Strategy
The investment portfolio grew by 5.3% during FY2025 and has achieved an impressive compound annual growth rate of 8.9% since Wilson Asset Management took over as Investment Manager in October 2020. This growth has been delivered with notably lower volatility compared to public markets, underscoring the portfolio’s risk-adjusted return profile. The company has strategically shifted its asset allocation, reducing legacy holdings to around 19% of the portfolio and increasing exposure to growth-oriented investments across private equity, infrastructure, real estate, agriculture, water rights, and private debt.
Key portfolio highlights include successful exits such as Linen Services Australia, which was sold to Macquarie Asset Management, demonstrating the potential for value creation even amid macroeconomic uncertainty. The portfolio also features new investments and co-investments in sectors aligned with long-term thematic trends like energy transition, digitalisation, ageing demographics, and food scarcity.
Governance and Upcoming AGM Resolution
Despite the portfolio’s strong performance and narrowing share price discount to net tangible assets (NTA), WAM Alternative Assets has not met the Premium Target established upon Wilson Asset Management’s appointment. This triggers a shareholder vote at the upcoming Annual General Meeting (AGM) on 9 October 2025 on a special resolution to terminate the Investment Management Agreement (IMA) and liquidate the company.
The Board, including independent directors, strongly recommends shareholders vote against this resolution, citing the risk of sub-optimal outcomes from liquidation and confidence in the current management’s ability to deliver ongoing absolute returns. The Chair has committed to voting all available proxies against the resolution, while directors associated with Wilson Asset Management will abstain. The Board believes that removing this uncertainty will help reduce the share price discount and support the company’s growth trajectory.
Outlook and Market Position
Looking ahead, WAM Alternative Assets is entering a growth phase with a well-diversified, institutional-grade portfolio. The company plans to enhance cash management and add private debt exposure to complement existing holdings. The investment themes underpinning the portfolio are expected to provide tailwinds through various market cycles, positioning the company to generate strong risk-adjusted returns for shareholders.
As the only listed investment company on the ASX offering access to alternative assets typically reserved for institutional investors, WAM Alternative Assets continues to carve out a unique niche. Its focus on delivering a combination of dividend yield and capital growth, alongside diversification benefits, remains central to its strategy.
Bottom Line?
The upcoming AGM vote will be a pivotal moment for WAM Alternative Assets, with the Board confident that continued management under Wilson Asset Management will unlock further value for shareholders.
Questions in the middle?
- Will shareholders reject the resolution to terminate the Investment Management Agreement at the AGM?
- How will ongoing macroeconomic uncertainties impact private market valuations and exit opportunities?
- What new investment opportunities and exits can investors expect as the portfolio matures in FY2026?