In an ASX statement WAM Capital said profit after tax was up 54.4 per cent for the year ending 30 June 2014, while pre-tax profit rose 68.8 per cent to $90.5 million.
Total shareholder return for the period was 30.7 per cent and the investment portfolio increased 19.2 per cent, outperforming the 17.6 per cent increase in the ASX All Ordinaries Accumulation Index over the same period.
WAM Capital chief investment officer Chris Scott said the company maintained an average equal equity weighting of 64 per cent and an average cash weighting of 36 per cent with the equity portion of the investment portfolio returning 28.1 per cent.
“It’s a strong risk-adjusted result for shareholders and underscores the success of our rigorous investment process,” said Mr Scott.
In terms of the outlook for the equity market, Mr Scott said he expects market returns in the near term to remain below longer term averages.
“Over the medium to longer term, our view of the market is more positive, contingent on increased economic activity resulting from historically low interest rates,” he said.
WAM Capital was well positioned to capitalise on opportunities in the market as they arise, “with a conservative balance sheet, a high cash weighting, no debt and a flexible and proven investment approach”, Mr Scott said.
“The company will continue to seek opportunities irrespective of market conditions, having achieved outperformance through various market cycles,” he said.
