WAM Active Boosts Dividends Amid 41.4% Portfolio Surge
WAM Active Limited has reported its strongest investment performance since inception, with a 41.4% return over 12 months and increased fully franked dividends, signalling confidence in its dynamic portfolio strategy heading into 2026.
- Investment portfolio returned 41.4% over 12 months to December 2025
- Outperformance of key benchmarks by over 30% in both 6- and 12-month periods
- Fully franked interim dividend increased to 3.2 cents per share
- Special fully franked dividend of 1.0 cent per share declared
- Strategic portfolio shift towards precious and base metals amid changing market conditions
Record-Breaking Performance
WAM Active Limited (ASX, WAA) has announced a landmark year for its investment portfolio, delivering a 41.4% return over the 12 months ending 31 December 2025. This marks the strongest performance since the company’s inception 18 years ago, significantly outpacing the Bloomberg AusBond Bank Bill Index and the S&P/ASX All Ordinaries Accumulation Index by more than 30%.
The six-month performance was similarly impressive, with a 31.4% return, underscoring the effectiveness of WAM Active’s dynamic portfolio construction and stock selection strategy. These results reflect the team’s ability to capitalise on market opportunities amid evolving economic conditions.
Dividend Boost Reflects Confidence
In response to the exceptional financial results, the Board has declared an increased fully franked interim dividend of 3.2 cents per share, alongside a special fully franked dividend of 1.0 cent per share. Together, these dividends represent an annualised yield of 6.5%, or 9.3% when including franking credits, reinforcing WAM Active’s commitment to delivering consistent income streams to shareholders.
Since inception, WAM Active has paid a total of 104.7 cents per share in fully franked dividends, highlighting a strong track record of shareholder returns supported by prudent capital management.
Strategic Portfolio Adjustments
Lead Portfolio Manager Oscar Oberg and Deputy Portfolio Manager Shaun Weick have emphasised the increased portfolio turnover over recent months, enabling the fund to seize trading opportunities linked to earnings updates, mergers and acquisitions, and other corporate activities. This active management approach has been pivotal in driving outperformance.
Notably, the portfolio has shifted towards precious and base metals, positioning itself to benefit from anticipated US interest rate cuts, improving global growth prospects, and a weakening US dollar. This sector rotation reflects a forward-looking stance amid a reassessment of inflation and interest rate outlooks by domestic investors.
Outlook and Market Positioning
While capital markets activity has generally improved, the team remains cautious about recent IPO performances, suggesting selective engagement going forward. Nevertheless, WAM Active’s flexible investment strategy and experienced team underpin an optimistic outlook for 2026, with expectations of compelling trading opportunities during the upcoming reporting season.
Investors can also participate in the Dividend Reinvestment Plan, which will operate without a discount for the declared dividends, allowing shareholders to compound their investment in the fund.
Bottom Line?
WAM Active’s record returns and dividend increases set a high bar, but sustaining this momentum will hinge on navigating evolving market dynamics in 2026.
Questions in the middle?
- How will WAM Active’s increased exposure to metals perform if global growth slows unexpectedly?
- What impact will the upcoming February reporting season have on portfolio adjustments and returns?
- Can the fund maintain its high turnover strategy without increasing volatility or risk?
