Wilson Asset Management's listed investment company WAM Active (ASX: WAA) has delivered a record investment portfolio return of 75.5 per cent for the 2026 financial year, marking the strongest performance in the fund's 18-year history as it focused on smaller low-profile companies.
The result outperformed the Bloomberg AusBond Bank Bill Index by 71.6 percentage points and the S&P/ASX All Ordinaries Accumulation Index by 69.8 percentage points over the same period.
WAM Active's pre-tax net tangible assets stood at $1.15 per share at 30 June 2026, while total fund assets reached $185.3 million after a February 2026 entitlement offer raised $70.7 million and increased the company's asset base by 84 per cent.
"The investment portfolio outperformance was driven by exposure to four key themes: critical minerals, electrification and grid infrastructure, precious metals and artificial intelligence (AI)," says lead portfolio manager Oscar Oberg.
“Equity markets over the 2026 financial year were characterised by elevated volatility, rapid shifts in macroeconomic expectations and pronounced rotation across sectors and themes.
"Changes to interest rate outlooks, geopolitical developments and the accelerating AI adoption contributed to periods where company fundamentals were often overshadowed by broader market positioning.
"These conditions created dislocations across parts of the market, particularly in smaller and less well-covered companies, providing opportunities for the investment team to identify mispriced securities using WAM Active’s market-driven approach.”
The fund declared total fully franked dividends of 9.4c per share for FY26, comprising an ordinary dividend of 6.4c and a special dividend of 3c.
Based on a share price of $1.09 on 10 July 2026, the grossed-up dividend yield was 12.3 per cent.
Total shareholder return for the year came in at 40.2 per cent, lower than the portfolio return as the share price traded at a 9.5 per cent discount to net tangible assets at the end of June.
"This record result reflects the strength of WAM Active’s disciplined and flexible investment strategy, outstanding stock selection and active portfolio management," says WAM Active chairman Geoff Wilson.
"We remained focused on delivering strong long-term returns and a growing stream of fully franked dividends for shareholders.”
WAM Active's cash position peaked at 35.5 per cent in February before the team deployed capital into opportunities arising from market dislocations.
Materials was the fund's largest sector weighting at 40.5 per cent, followed by information technology at 20.5 per cent, reflecting the fund's tilt toward resources and tech-enabled businesses during the period.
Portfolio manager Shaun Weick says active cash management has been central to the fund's approach.
“Throughout the period, we actively managed the investment portfolio’s cash position in response to market conditions," says Weick.
"This flexibility allows us to protect capital in more uncertain environments and deploy cash quickly as opportunities emerge.
“As we enter the new financial year, China remains a key driver of markets, with improving property and electrification trends supporting copper demand, where we remain bullish given strong structural tailwinds and near-term catalysts across several holdings
"We believe the current opportunity set remains attractive and we are optimistic about the holdings in the WAM Active investment portfolio.
"While market conditions are likely to remain dynamic, our flexible investment approach and active portfolio management position us well to continue identifying opportunities that create value for shareholders."
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