WAM Strategic Value (WAR) investor relations material

Executive summary

• The investment strategy targets undervalued companies with identifiable catalysts, holding medium-term and remaining active in portfolio management.

• Operating profit before tax rose to $16.0M and after tax to $12.8M for the half year ended 31 December 2025, reflecting strong portfolio performance.

• Portfolio delivered a 14.9% return for calendar 2025 and 9.8% over the last six months, outperforming the S&P/ASX All Ordinaries Accumulation Index by 5.4%.

• The share price discount to NTA narrowed from 14.6% to 11.7%, with expectations for further narrowing.

• Dividend payments increased, with a fully franked interim dividend of 3.25 cents per share declared.

Financial highlights

• Net realised and unrealised gains on financial investments and FX: $14.7M for the half year.

• Portfolio up 14.9% for 2025 and 9.8% over the last six months; annualised performance since inception is 8.1%.

• Pre-tax NTA at 31 December 2025 was $1.30/share; after-tax NTA was $1.33/share; look-through pre-tax NTA was $1.49/share.

• Total shareholder return for the period was 10.7% (including franking credits).

• Annualised fully franked interim dividend yield reached 5.6%; grossed-up dividend yield was 8.0%.

Outlook and guidance

• Expectation that the share price discount to NTA will continue to narrow, potentially reaching parity or a premium.

• Dividend increases are planned to continue, supported by a strong profit reserve.

• Portfolio positioned to capitalize on undervalued asset opportunities in 2026 and beyond.

• The pipeline for new listed investment companies and opportunities remains healthy, with more IPOs and secondary raisings anticipated.