How WAM Income Maximiser Outpaced Expectations with Early Capital Deployment

Strong Start for WMX Post-IPO

WAM Income Maximiser Limited (WMX) has made an impressive debut since its April 2025 initial public offering, fully deploying its capital by mid-May, well ahead of the anticipated three to six months. This rapid deployment was facilitated by the fund’s flexible mandate, allowing it to capitalise on liquid secondary debt markets amid recent market volatility.

The fund’s strategy focuses on a diversified multi-asset approach, investing predominantly in high-quality Australian equities (75.5%) and corporate debt instruments (24.5%). This blend aims to deliver both monthly income and capital growth, targeting an income return of the Reserve Bank of Australia (RBA) cash rate plus 2.5% per annum, including franking credits.

Delivering Income and Outperformance

Since launching monthly fully franked dividends in August 2025, WMX has steadily increased its payouts, with the October dividend set at 0.40 cents per share. The fund’s weighted average yield stands at 4.6%, supported by a portfolio yield of 4.1% on equities and 6.1% on debt holdings. Importantly, the fund has outperformed its benchmark, a blend of the ASX 300 Accumulation Index and Bloomberg AusBond Bank Bill Index plus 1%, delivering a 7.3% return since full investment, compared to the benchmark’s 5.8%.

Volatility has been notably lower for WMX at 5.8% versus the ASX 300’s 8.6%, reflecting the benefits of its multi-asset diversification and active management. The share price has consistently traded at a premium to net tangible assets (NTA), currently $1.68 versus an NTA of $1.605, underpinned by realised capital gains and a capital profits reserve.

Strategic Placement to Fuel Growth

To build on this momentum, WMX has announced a placement of up to 75 million fully paid ordinary shares at $1.602 per share, aiming to raise approximately $120 million. The placement, managed by a syndicate of leading brokers including Morgans Financial and Taylor Collison, is expected to settle and commence trading by late October 2025.

This capital raise is poised to enhance WMX’s capacity to exploit income and capital growth opportunities amid supportive macroeconomic factors. These include the phase-out of hybrid securities by APRA, which is displacing significant cash into income-generating products, and persistent inflationary pressures that elevate the appeal of higher-yielding assets.

A Multi-Asset Edge in a Complex Market

WMX’s multi-asset platform offers a sophisticated toolkit to navigate evolving market conditions. By leveraging insights from both equity and debt markets, the fund can tactically adjust hedges and positioning across time zones. This approach not only captures income from core debt holdings but also pursues capital growth in equities without style bias, providing a nuanced balance that appeals to investors seeking both yield and stability.

As the fund continues to build its track record, investors will be watching closely to see how WMX capitalises on its early success and the broader market dynamics that underpin its strategy.