WAM Active Limited reported a record half-year profit with its investment portfolio soaring 31.4%, significantly outperforming benchmarks. The company also declared increased fully franked dividends and completed a $70.7 million capital raise, boosting assets under management beyond $151 million.
- Investment portfolio up 31.4%, outperforming ASX All Ordinaries by 27%
- Net profit after tax more than doubled to $11 million
- Fully franked interim dividend increased to 3.2 cents per share plus 1.0 cent special dividend
- Oversubscribed entitlement offer raised $70.7 million
- Ongoing legal proceedings related to Keybridge Capital continue
Strong Half-Year Financial Performance
WAM Active Limited has unveiled a robust half-year financial report for the six months ending 31 December 2025, showcasing a remarkable 31.4% increase in its investment portfolio. This performance not only dwarfs the 4.4% rise in the S&P/ASX All Ordinaries Accumulation Index but also significantly outpaces the Bloomberg AusBond Bank Bill Index, which grew by just 1.8% over the same period.
The company’s net profit after tax more than doubled to $11.05 million, up from $5.38 million in the prior corresponding period. This surge reflects both realised and unrealised gains, underscoring the strength of WAM Active’s active trading strategy and its ability to generate returns with relatively low volatility.
Dividend Growth and Shareholder Returns
In line with its strong earnings, WAM Active declared a fully franked interim dividend of 3.2 cents per share, up from 3.0 cents previously, alongside a special fully franked dividend of 1.0 cent per share. These dividends reflect the company’s commitment to delivering a steady income stream, with the interim dividend alone representing an annualised yield of 6.4% based on the closing share price of $1.00 at the end of December 2025.
Total shareholder return (TSR) for the half-year was an impressive 30.3%, factoring in share price appreciation and dividends including franking credits. Notably, the share price moved from a 7.0% discount to net tangible asset (NTA) backing in June 2025 to a slight premium of 1.1% by December, signalling renewed investor confidence.
Capital Raise to Fuel Growth
WAM Active’s growth ambitions were further supported by a highly successful 2-for-3 pro-rata non-renounceable entitlement offer announced in January 2026. The offer was oversubscribed, raising a total of $70.7 million through existing shareholders and professional investors. This capital injection has expanded the company’s assets under management to over $151 million, positioning it well for future investment opportunities.
The capital raise was executed at an issue price of $1.00 per share, reflecting the company’s strong market standing and investor appetite for its active investment approach.
Navigating Risks and Legal Challenges
While the financial results are encouraging, WAM Active continues to manage a range of material risks. Market and economic volatility remain inherent challenges, alongside governance considerations given the company’s board composition and its relationship with the Wilson Asset Management Group as investment manager.
Additionally, WAM Active is actively pursuing legal proceedings related to Keybridge Capital, seeking recovery of approximately $5 million transferred without shareholder approval. The case, involving complex cross-border elements including asset freezes in Australia and Italy, remains ongoing with a hearing scheduled for March 2026.
Outlook and Strategic Focus
The company’s leadership emphasises its commitment to delivering consistent, fully franked dividends and preserving capital while pursuing absolute returns through active portfolio management. With a strengthened balance sheet and a growing asset base, WAM Active is well placed to navigate market cycles and capitalise on investment opportunities.
Investors will be watching closely how the company balances growth ambitions with risk management, particularly in light of the ongoing legal matters and the evolving market environment.
Bottom Line?
WAM Active’s record half-year performance and capital raise set the stage for ambitious growth, but legal and market risks warrant close investor attention.
Questions in the middle?
- How will ongoing Keybridge Capital legal proceedings impact WAM Active’s future financials?
- Can WAM Active sustain its elevated dividend payouts amid market volatility?
- What strategies will the investment manager deploy to maintain outperformance going forward?