Profit Halves at WCM Global Growth as Market Volatility Tests Dividend Policy
WCM Global Growth Limited reported a 51% drop in net profit for H1 FY2026 but announced an increased fully franked interim dividend, reflecting confidence in its investment strategy. The company’s portfolio outperformed its benchmark over 12 months despite a softer half-year return.
- Net profit after tax down 51.4% to $22.87 million for H1 FY2026
- Interim dividend increased to 2.16 cents per share, fully franked
- Net tangible asset (NTA) per share rose to $2.064 as at 31 December 2025
- Portfolio returned 6.23% for the half-year, underperforming benchmark by 3.6%
- 12-month portfolio return of 14.74% outpaced benchmark’s 14.02%
Profit Decline Reflects Market Volatility but Dividend Policy Strengthens
WCM Global Growth Limited (ASX – WQG) has reported a net profit after tax of $22.87 million for the half-year ended 31 December 2025, marking a 51.4% decline compared to the previous corresponding period. This drop primarily reflects fluctuations in the valuation of its global investment portfolio amid a challenging market environment.
Despite the profit contraction, the company announced an increased fully franked interim dividend of 2.16 cents per share, payable on 15 April 2026. This marks a continuation of WCM’s progressive quarterly dividend policy, which aims to deliver growing and more frequent returns to shareholders.
Portfolio Performance – Mixed Half-Year but Stronger Annual Returns
The company’s investment portfolio, managed by California-based WCM Investment Management, delivered a 6.23% return over the half-year. While this underperformed the MSCI All-Country World ex-Australia Index benchmark return of 9.85% for the same period, the portfolio outshone the benchmark over the 12 months to 31 December 2025, returning 14.74% versus 14.02%.
Since its inception in 2017, the portfolio has compounded at an annualised rate of 16.49%, comfortably exceeding the benchmark’s 13.69%. This long-term outperformance underpins the company’s confidence in its investment approach, which focuses on companies with rising competitive advantages and strong corporate cultures.
Balance Sheet and Dividend Outlook
Net tangible assets per share increased from $2.03 at 30 June 2025 to $2.06 at 31 December 2025, despite dividend payments totalling over 4 cents per share during the half-year. The company’s shares traded at a post-tax NTA premium of 7.5% at the end of December, a notable improvement from a 2.6% discount six months earlier, reflecting improved market sentiment and liquidity.
Looking ahead, the Board has signalled its intention to continue paying progressive fully franked quarterly dividends through FY2026, with forecast dividend payments ranging from 2.21 to 2.45 cents per share per quarter. The company’s Dividend Reinvestment Plan will not operate for the upcoming interim dividend, offering shareholders the choice of cash payments.
Governance and Market Position
The company also announced the passing of Non-Executive Director Michael Liu in January 2026, a founding director whose leadership and governance contributions were highly valued. The Board expressed condolences and reaffirmed its commitment to strong governance standards.
WCM Global Growth continues to build its market profile and relevance, with its investment manager AGP International Management Limited driving improved share price performance and liquidity. The Board remains confident in the company’s robust investment approach and its positioning for future success despite ongoing market uncertainties.
Bottom Line?
WCM Global Growth’s dividend increase and sustained portfolio outperformance signal resilience, but investors will watch closely for how market volatility impacts future earnings.
Questions in the middle?
- How will the passing of Michael Liu affect the company’s governance and strategic direction?
- Can WCM sustain its progressive dividend policy if market conditions remain volatile?
- What factors contributed to the portfolio’s underperformance relative to the benchmark in the half-year?
