WAM Capital posts $91.5m loss for H2
WAM Capital has reported a $91.5 million operating loss after tax for the six months to December, 2018, as the investment portfolio went down 9.3 per cent and led to a reduction of $132 million in assets.
The company said in a statement issued to the Australian Securities Exchange (ASX) that its investment portfolio cash level was currently 35 per cent lower compared to 43.9 per cent on 31 December, 2018, as it reflected the change in the outlook.
WAM Capital’s chairman and chief investment officer, Geoff Wilson, said the firm’s view at the end of 2018 its market outlook was extremely bearish due to signs that the US Federal Reserve would raise interest rates in 2019 and quantitative tightening (QT) would continue at unprecedented levels while leading economic indicators were pointing to a slowing global economy.
He stressed that the combined impact of these factors on equity markets would have been brutal.
“This did not occur and the major turning point in January was the unexpected about-face of the US Federal Reserve, holding interest rates for the foreseeable future and indicating that QT might be over,” Wilson explained.
“This change in approach provided equity markets with strong support.”
Despite the volatility in the market, WAM Capital declared a fully franked interim dividend of 7.75 cents per share, currently representing an annualised dividend yield of 7.2 per cent, the firm said.
AUTHOR
Oksana Patron
Recommended for you
Adviser numbers have continued the winning streak for the 2025–26 financial year with the seventh consecutive week in the green, buoyed by a steady flow of new entrants.
Netwealth chief executive Matt Heine has explained the platform is focused on accelerating its share of the affluent advice market as its NPAT reaches $116 million.
ETF provider Global X has appointed five new roles across the business, including a head of technology, as it seeks to scale the business and expand its reach in the Australian market.
Insignia chief executive, Scott Hartley, has said the licensee is “on track” with 2030 revenue and client targets for its advice division, and is looking to AI for future efficiencies.
