SMSFs help drive WAM Capital profit
Self-managed superannuation fund (SMSF) investors have helped drive WAM Capital to a record pre-tax operating profit of $69.5 million.
The company reported to the Australian Securities Exchange (ASX) today that its operating profit before tax was up 118.9 per cent for the half year to 31 December, 2013, generating a fully franked interim dividend of 6.5 cents.
WAM Capital chairman Geoff Wilson said he believed the company had delivered shareholders another strong, risk-adjusted result reflecting the strong performance of the WAM's investment portfolio.
The company's analysis also noted the influence of SMSF demand on the result, saying it had experienced a significant increase in self-funded retirees investing in the company — with SMSFs accounting for more than 40 per cent of its issued capital.
"Over the last 12 months, SMSFs have invested over $130 million in WAM Capital," it said. "This reflects the considerable growth in Australia's SMSF sector which has increased in value almost 65 per cent since the global financial crisis to $520 billion."
Wilson said the growth in SMSFs had been a major benefit to WAM Capital.
AUTHOR
Staff Writer
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