WAM Active Limited sees profits soar 1,688%
Wilson Asset Management's WAM Active listed investment company has seen profits jump from $100,000 in 2014 to $2.6 million for the year to 31 December 2015.
In an announcement to the Australian Securities Exchange (ASX), the company reported its investment portfolio grew by 19.3 per cent in 2015, while it also provided a solid 12-month outperformance of 15.5 per cent against the market, and 17 per cent against the cash rate.
The company said the increase in operating profit is a reflection of the strong performance of the investment portfolio, which increased 14.4 per cent in the six months to 31 December 2015, outperforming the S&P/ASX All Ordinaries Accumulation Index by 14 per cent and UBS Bank Bill Index by 13.3 per cent.
WAM Active chairman Geoff Wilson said the positive performance was achieved due to the company's absolute return investment strategy and flexible mandate.
"Our strong performance in the half year period points to the success of our highly active investment methodology, which saw the investment portfolio turn more than twice," he said.
"We believe WAM Active's market-driven investment methodology will continue to offer investors capital growth and income irrespective of market conditions given the investment portfolio's low correlation to traditional markets."
WAM Active chief investment officer, Chris Stott, said the company offered investors protection though it high cash weighting, which has enabled the manager to take advantage of market volatility.
"The 19.3 per cent increase in the investment portfolio was achieved with an average 27 per cent cash weighting," he said.
Stott added that the company's strong result was linked to its holdings in health and lifestyle businesses, including Blackmores, Mayne Pharma Group, Gateway Lifestyle Group and Myer Holdings Limited.
AUTHOR
Staff Writer
Recommended for you
There is one specific risk that is a significantly higher concern for financial services directors compared to companies overall and is impacting their risk appetite, according to the AICD.
Global fund managers are shunning bonds, with the asset class seeing the largest drop in allocations in more than 20 years.
Australian Ethical has seen its funds under management reach $10 billion, driven by organic customer growth and superannuation contributions.
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
