WAM Income Maximiser (ASX: WMX) has outpaced its benchmark with an 18.1% portfolio increase and exceeded its dividend target by delivering a 7.0% fully franked yield in its first year since April 2025.
- 18.1% investment portfolio growth since inception
- 6.8% outperformance against benchmark
- 7.0% annualised fully franked dividend yield including franking credits
- Portfolio blends high-quality equities and investment-grade corporate debt
- Pre-tax NTA at $1.6613 with share price at $1.60
Strong First-Year Returns Surpass Expectations
WAM Income Maximiser Limited (ASX:WMX) has marked its first full year on the ASX with an impressive 18.1% increase in its investment portfolio, comfortably beating its benchmark by 6.8%. The company also delivered a fully franked annualised dividend yield of 7.0% on its IPO price, including franking credits, exceeding its target income return set at the RBA Cash Rate plus 2.5%. This performance underscores the success of the LIC's dual focus on income and capital growth since its April 2025 launch.
Balanced Portfolio Strategy Drives Stability and Growth
The portfolio’s design combines high-quality Australian equities with investment-grade corporate debt, allowing the management team to dynamically allocate capital between these asset classes in response to market conditions. This approach aims to harness the growth potential of equities while using corporate debt to moderate volatility and enhance capital preservation. The debt investments, primarily from major Australian banks, rank ahead of equity in the capital structure, providing an additional layer of security for shareholders.
Lead Portfolio Manager Matthew Haupt and Portfolio Strategist Damien Boey have actively managed the portfolio, employing tactical overlays such as futures to manage market exposure and risk. This flexibility has been pivotal in navigating market volatility and delivering consistent monthly income streams.
Compelling Valuation and Income Opportunity
As of 30 April 2026, WMX’s pre-tax net tangible assets (NTA) stood at $1.6613 per share, while the market price was slightly lower at $1.60, presenting a potential value opportunity for investors seeking both income and growth. The annualised fully franked dividend of 7.32 cents per share, which translates to 10.5 cents including franking credits, reflects the LIC's commitment to delivering a sustainable and attractive income stream.
This dividend yield surpasses the target income return, which is a notable achievement given the company’s objective is to meet this target over time once sufficient profit reserves and franking credits are established. The LIC’s ability to exceed this benchmark so early in its lifecycle is a positive signal for income-focused investors.
Growing Funds Under Management and Market Presence
Wilson Asset Management, the LIC’s manager, oversees $6.0 billion in funds across multiple listed investment companies, including WMX. The firm’s experience and track record, spanning over 28 years and managing 13 investment products, underpin the confidence in WMX’s strategy. The LIC’s presence across all major platforms such as Asgard, BT Panorama, and HUB24 facilitates broad accessibility for retail and wholesale investors alike.
WMX’s strong first-year performance builds on earlier momentum, including a $148 million capital raise that expanded its fund base and a series of increasing fully franked dividends throughout 2025 and early 2026, as detailed in prior updates. The LIC’s active management and diversified portfolio have contributed to its relatively lower volatility compared to the S&P/ASX 300 Accumulation Index, an appealing feature for investors prioritising risk-adjusted returns.
Bottom Line?
WMX’s blend of equities and corporate debt has delivered strong returns and income in its first year, but sustaining this performance will depend on ongoing market conditions and active portfolio management.
Questions in the middle?
- How will WMX adjust its asset allocation amid changing interest rates and equity valuations?
- Can the LIC maintain its dividend yield above target as it scales and market volatility evolves?
- What role will tactical overlays play in managing risk as WMX grows its funds under management?