WAM Strategic Value (WAR) H2 2025 earnings summary

Executive summary

• Portfolio delivered a solid performance, up 8.6% for the year, with notable gains from investments like Global Data Centre and active trading in LICs and LITs.

• Operating profit before tax reached $12.4m for FY2025.

• Fully franked dividends since inception total 15.75 cps, or 22.5 cps including franking credits.

• Total shareholder return, including franking credits, was 5.7% for the 12 months to 31 July 2025.

• High cash levels (nearly 20%) are being selectively deployed as opportunities arise, focusing on assets at significant discounts to NTA.

Financial highlights

• Portfolio up 8.6% year-over-year, outperforming the market during down periods when adjusted for cash holdings.

• Pre-tax NTA at 31 July 2025 was $1.26; look-through value of assets is $1.52.

• Share price traded at a 13.2% discount to pre-tax NTA at 31 July 2025, with a share price of $1.095.

• Fully franked full year dividend yield was 5.3%, grossed-up to 7.6% based on a $1.13 share price.

• Cash position at end of June was 15.8%, now closer to 20% live.

Outlook and guidance

• Management expects to continue realizing value from discounted assets and is confident the share price will eventually trade at NTA or a premium.

• Ongoing focus on tightening the share register and communicating with shareholders to support share price re-rating.

• Selective deployment of cash as market volatility may present new opportunities.

• Dividend payment dates for the 3.0cps fully franked final dividend are set for October 2025.