WAM Strategic Value has announced an increased fully franked full-year dividend of 6¢ per share, representing a yield of 5.3 per cent. The fully franked final dividend will be 3¢ per share. WAM Strategic Value aims to identify and invest in undervalued listed companies with a focus on franking credit opportunities. Wilson Asset Management manages the fund, seeking to deliver investors a stream of fully franked dividends.
The company’s investment portfolio saw an increase of 8.6 per cent in the financial year ending June 30. Throughout the financial year, the investment portfolio maintained a higher-than-average cash balance, averaging 27.6 per cent. This strategic positioning allowed the fund to navigate periods of market volatility effectively.
Wilson Asset Management reported that the fund outperformed the S&P/ASX All Ordinaries Accumulation Index in October, December, February, and March. During these months, the All Ordinaries experienced negative performance. Chairman and lead portfolio manager Geoff Wilson stated the fund strategically positioned its investment portfolio to safeguard capital amid rising geopolitical tensions and equity market volatility.
During these periods of market downturn, the S&P/ASX All Ordinaries Accumulation Index collectively fell by 11.4 per cent. In contrast, the WAM Strategic Value investment portfolio experienced a comparatively small decrease of only 0.8 per cent in aggregate. Mr. Wilson noted this positioning enables the fund to strategically deploy capital when opportunities arise.
