WAM Strategic Value (WAR) investor relations material

Executive summary

• FY2026 portfolio delivered a 9.5% return, outperforming the S&P/ASX All Ordinaries Accumulation Index by 3.8% and the domestic All Ords index by nearly 4% year-over-year.

• Fully franked full year dividend increased to 6.5 cents per share, up 8.3% from FY2025, with a yield of nearly 6% and grossed-up yield over 8%.

• Operating profit before tax for HY2026 reached $16.0 million, and FY2026 profit before tax was $14.3 million, both reflecting strong portfolio performance.

• Portfolio maintains a disciplined approach, holding close to 30% cash due to market cycle considerations and high valuations.

• Significant shareholder engagement and communication efforts are ongoing to address the share price discount to NTA.

Financial highlights

• Investment portfolio delivered a 9.8% return before expenses, fees, and taxes for HY2026, and 9.5% for FY2026; total shareholder return including franking credits was 9.9% for the 12 months to 31 December 2025.

• Dividends are fully franked, with a current payout of AUD 0.065 per share; total dividends paid since inception amount to 18.75 cents per share, or 26.8 cents including franking credits.

• Pre-tax NTA at 30 June 2026 was $1.25 per share; look-through pre-tax NTA was $1.43 per share.

• Share price discount to NTA narrowed from 14% to 10% over the past year, with a share price at 30 June 2026 trading at a 24.8% discount to look-through pre-tax NTA and a 14.1% discount to pre-tax NTA.

• Profit reserve covers approximately three years of dividends, and the look-through yield is 7.7 cents, covering 90% of the dividend.

Outlook and guidance

• Substantial liquidity positions the company to capitalize on discounted opportunities amid market uncertainty.

• Expectation that the share price discount to NTA will continue to narrow over time.

• Ongoing focus on risk-adjusted returns and disciplined capital allocation, with readiness to deploy cash as opportunities arise.

• Board remains open to special dividends if performance exceeds market expectations.

• Ongoing dispersion in premiums and discounts across the sector highlights continued investment opportunities.