In This Article:
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WAM Capital Outperformance: Outperformed the All Ordinaries Index by 14% and the Small Ordinaries Index by 17%.
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WAM Research Outperformance: Outperformed the All Ordinaries Index by 18% and the Small Ordinaries Index by 21%.
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WAM Microcap Outperformance: Outperformed by 12%, marking the seventh consecutive year of outperformance since its IPO in 2017.
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WAM Active Outperformance: Outperformed its benchmark by 26%.
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Dividend Yield: WAM Capital trading at a fully franked dividend yield of around 10% compared to the market average of 4%.
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Net Tangible Assets (NTA): Declined by about 5% per year due to high dividend payouts, but recent performance has added to the NTA base.
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Profit Reserve Coverage: 1.5 years of dividend coverage, up from 0.7 years the previous year.
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Premium to NTA: Historically traded at a 16% premium, currently at parity with NTA.
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Small-Cap Market Performance: Small-cap companies underperformed by 2% in August, while the broader market was up 0.4%.
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Sector Performance: Healthcare and financial services sectors performed well, with companies like Healius, Australian Clinical Labs, and Judo Bank outperforming.
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New Zealand Market: Noted a 30% decline in foot traffic in New Zealand stores in June and July.
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Stock Highlight - HMC Capital: Current funds under management at $12 billion, with potential growth to $50 billion.
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Stock Highlight - Service Stream: Expected margin expansion due to a full pipeline and easing labor wage inflation.
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Stock Highlight - Smartpay: Dominant payment terminal provider in New Zealand, with potential earnings tripling over the next two years.
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Stock Highlight - Integral Diagnostics: Merger with Capitol Health expected to create significant synergies and potential valuation upside.
Release Date: September 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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WAM Active Ltd (ASX:WAA) outperformed its benchmark by 26%, showcasing strong performance in the larger small-cap companies.
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The company has been able to take advantage of increased capital markets activity, including discounted stock lines and acquisitions.
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WAM Active Ltd (ASX:WAA) has a market-driven process that has been beneficial in the current environment.
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The company has a positive outlook on small caps, anticipating a potential turnaround as interest rates stabilize or decrease.
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WAM Active Ltd (ASX:WAA) has a strong dividend yield, providing a significant return to shareholders compared to the broader market.