WAM Capital (WAM) Status Update summary

Fund and Portfolio Performance

• Achieved 43.0% investment portfolio performance in the 12 months to 30 November 2024, outperforming the S&P/ASX All Ordinaries Accumulation Index by 19.5% and the S&P/ASX Small Ordinaries Accumulation Index by 23.1%.

• All four funds outperformed benchmarks in the first five months to November, with WAM Capital and WAM Microcap up over 6% and WAM Research and WAM Active up over 12%.

• Since inception in August 1999, delivered an annualized investment portfolio performance of 15.8% per annum before expenses, fees, and taxes.

• Pre-tax NTA per share stood at $1.62 as of 30 November 2024, with a closing share price of $1.525 on 16 December 2024, trading at a 5.9% discount to NTA.

• Profits reserve at 30 November 2024 was 22.4 cents per share, supporting a FY2024 full year dividend of 15.5 cents per share, 60% franked.

Market Outlook and Strategy

• Anticipated interest rate cuts in early 2025 are expected to benefit small and mid-cap companies and listed investment companies.

• The team sees strong momentum and believes the environment is the best for value in over a decade, especially for WAM Capital, which is trading at a discount to NTA.

• IPO market is showing signs of recovery, with a strong pipeline and increased pre-IPO activity expected in 2025.

• Investment process centers on identifying catalysts, modeling target prices, and maintaining high portfolio turnover (250% in the past year).

• The team is committed to closing the share price discount to NTA through performance and improved communication.

Investment Themes and Stock Highlights

• High conviction picks include TPG Singapore (TUA), a2 Milk, G8 Education, and AMP, each with strong catalysts and growth prospects.

• AI innovation is led by Temple & Webster and AI-Media, leveraging technology for efficiency and disruption.

• Recent portfolio additions include Catapult (sports analytics) and Event (asset-heavy business with potential asset sales and cinema recovery).

• Mining services and aged care are favored sectors, with positions in ALS, Seven Group, Regis Healthcare, and Summerset.

• New Zealand remains a key focus, with multiple holdings benefiting from anticipated rate cuts and government stimulus.