The WAM Global investment portfolio (WGB) increased by 23.7 per cent in calendar year 2024, Wilson AM has revealed.
In an ASX announcement on Monday, the firm said the performance of WGB – a portfolio of high-quality undervalued growth companies – over the period contributed to a 168 per cent increase in the company’s operating profit before tax of $107 million.
Wilson AM further pointed out that the portfolio increased by 13.4 per cent in the six months to 31 December, compared to the MSCI World Index’s 14.6 per cent gains.
However, since the beginning of the year, WGB increased by 4.9 per cent, outperforming the MSCI World Index’s 2.1 per cent ruse.
Expounding on the results, Wilson AM highlighted that the returns for the MSCI World Index continue to be dominated by tech mega caps, which the WAM Global investment portfolio is “significantly underweight in favour of more attractive, high-quality companies elsewhere”.
With the Magnificent Seven companies accounting for more than half the index’s gains for the second half of 2024, WGB lead portfolio manager Catriona Burns said this is presenting opportunities in less discovered parts of the equity market.
“Investors responded positively to Trump’s US presidential election win in November with his administration set to continue impacting financial markets,” Burns said.
“The WAM Global portfolio is poised to benefit in several ways, including the anticipated uptick in mergers and acquisitions with Trump signalling a shift toward reduced regulatory intervention and faster deal approvals. This is further supported by record available funds in private equity and a favourable interest rate environment.
“We remain confident in the long-term growth prospects for the companies we own in the investment portfolio and their ability to provide solid returns and a steady stream of dividends for shareholders going forward,” Burns added.
The Wilson AM board also declared an increased fully franked interim dividend of 6.5 cents per share, in addition to a special fully franked dividend of 4 cents per share.
A fully franked interim dividend of 6.5 cents per share provides an annualised fully franked dividend yield of 5.7 per cent and a grossed-up dividend yield of 8.1 per cent.
