WAM Global’s Dividend Boost Signals Confidence Amid Market Uncertainty

Strong Portfolio Performance Amid Global Market Dynamics

WAM Global Limited (ASX, WGB) has reported a robust 19.4% increase in its investment portfolio for the 2025 financial year, narrowly outperforming the MSCI World Index (AUD), which rose 18.5%. This outperformance underscores the fund’s disciplined approach to investing in undervalued, high-quality growth companies across global markets.

The portfolio’s success was achieved despite periods of heightened volatility, including geopolitical tensions and tariff announcements that rattled markets in early April. Lead Portfolio Manager Catriona Burns highlighted how these fluctuations created opportunities to selectively add to positions in companies with strong fundamentals and attractive risk-adjusted returns.

Dividend Growth Reflects Confidence and Profitability

Capitalising on the portfolio’s strong performance, WAM Global’s Board declared an increased fully franked full year dividend of 17.0 cents per share. This includes a special fully franked dividend of 4.0 cents per share payable in July, alongside a final dividend of 6.5 cents scheduled for November. The dividend yield stands at a compelling 5.2%, rising to 6.8% when including the special dividend, significantly outpacing global equity market yields.

Operating profit before tax rose sharply to $147.6 million, up from $107.3 million the previous year, while after-tax profit climbed to $103.3 million. These figures, though unaudited, reflect the fund’s effective capital deployment and operational efficiency.

Share Price and Total Shareholder Return

WAM Global’s share price appreciated from $2.21 to $2.50 over the year, narrowing the discount to net tangible assets from 7.7% to 4.0%. When combined with dividends and franking credits, shareholders enjoyed a total return of 22.1%, a strong outcome in a competitive global investment landscape.

Portfolio Composition and Strategic Outlook

The portfolio remains heavily weighted towards US companies (67.8%), with significant holdings in sectors such as capital markets, information technology, and healthcare. Top holdings include Intuit, SAP, Alphabet, and Visa, reflecting a focus on well-managed, innovative businesses with growth catalysts.

Looking ahead to FY2026, the management team expresses confidence in the portfolio’s positioning to benefit from thematic drivers that can enhance earnings power over time. The emphasis on quality, growth, and valuation upside suggests a strategy designed to navigate ongoing market uncertainties while seeking capital appreciation and income generation.