Investment manager Wilson Asset Management, has released its portfolio performance in the last 12 months, for its three listed investment companies, WAM Capital Ltd (ASX:WAM), WAM Research Ltd (ASX:WAX), and WAM Active Ltd (ASX:WAA).
All three listed investment companies performed strongly in the past 12 months, with Wilson Asset Management primary fund, WAM Capital Ltd increasing the returns on their portfolio by 25.6% for the year 2015. This return is consistent with the minimum return of 18.3% they have been able to achieve since 1999.
Likewise, the more research driven WAM Research Ltd achieved a 30.7% return on their portfolio, whilst the more market driven WAM Active posted a 19.3% return on their portfolio.
These returns were achieved in a year packed with increased volatility from the Chinese markets, along with the slump in commodity prices, in which major Australian companies have also felt the ramifications.
All investment funds outperformed the S&P/ASX All Ordinaries Accumulation Index (which garnered a return of 3.8%), with WAM Capital surpassing the index by 21.8%, WAM Research by 26.9%, and WAM Active by 15.5%.
These results were achieved with average cash holdings of 34% for WAM Capital, 41.5% for WAM Research, and 27.1% for WAM Active.
Wilson Asset Management Chairman Geoff Wilson felt the results for the year 2015 were quite promising: “We are particularly pleased to have delivered shareholders these results in a year of subdued economic growth, heightened volatility and significant uncertainty in the global and domestic financial markets.”
Investors have reacted rather positively to the results, with all three investment companies in the green. WAM is up approximately 0.48%, to $2.19. Likewise WAA has gained around 1.4%, to $1.07, along with WAX, which has added 1.18%, to $1.29.
Author: Imran Valibhoy
Jan 12, 2016
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.