WAM Strategic Value (ASX:WAR) exists to buy discounts. The listed Investment company, managed by Wilson Asset Management, invests in other listed vehicles trading below the value of the Assets they hold, then waits for that gap to close. The irony, and the reason it may sit on watchlists this September, is that its own shares have been trading at a wide discount to their look-through asset backing. With a Market Capitalisation of about A$204 million as at 11 September 2026, a fully Franked Dividend and more than a quarter of the portfolio in cash, the company presents an unusual combination.

Latest Development

WAM Strategic Value released its August 2026 investment update on 8 September 2026. Pre-tax net tangible assets stood at 127.04 cents per share at 31 August 2026, with post-tax net tangible assets of 122.33 cents. Look-through pre-tax net tangible assets were reported at $1.47 per share.

The portfolio rose in August, helped by holdings including Carlton Investments, whose own net tangible assets increased 4.5 per cent over the month, assisted by an 18.2 per cent gain in EVT. Cash and cash equivalents represented 26.7 per cent of the portfolio.

Company Overview

The company listed on the ASX in June 2021. Its mandate is to identify and exploit discounts to net asset value across listed investment companies, trusts and related opportunities, rather than to hold operating businesses directly.

Shareholders therefore own a portfolio of discounted vehicles, each with its own underlying exposures. The look-through measure, reflecting the value of assets held by investees rather than their market prices, is central to how the company reports value.

Recent Developments

WAM Strategic Value reported its FY2026 results on 20 August 2026. The investment portfolio rose 9.5 per cent over the year, outperforming the S&P/ASX All Ordinaries Accumulation index by 3.8 percentage points, with three-year annualised returns of 12.2 per cent.

Chairman Geoff Wilson said the company aimed to deliver strong risk-adjusted returns while working to close its share price discount to net tangible assets.

Financial and Operational Position

Operating profit before tax for FY2026 was A$14.3 million, up from A$12.4 million in FY2025, with operating profit after tax of A$12.7 million against A$11.5 million. The company declared fully franked dividends totalling 6.5 cents per share for the year, comprising 3.25 cent interim and final payments, an increase of 8.3 per cent on the 6.0 cents paid in FY2025.

At 30 June 2026 the fully franked dividend Yield was 5.6 per cent, or 8.0 per cent grossed up for franking. Pre-tax net tangible assets were $1.25 per share and look-through pre-tax net tangible assets $1.43, leaving the share price at a 24.8 per cent discount to look-through value. Cash represented 28.8 per cent of the portfolio at year end.

What Investors May Watch Next

Monthly net Tangible Asset announcements remain the clearest running indicator. Beyond that, investors may watch how the sizeable cash weighting is deployed, whether the discount to look-through value narrows, and whether the dividend continues to be supported by the profits reserve.

Risks

Discounts can persist or widen, and the company's own discount has done both. Returns depend on the performance of underlying listed vehicles as well as on discount capture, so broad market drawdowns flow through twice. Changes to franking or Capital Gains Tax settings could affect both investee valuations and the appeal of franked income. A high cash weighting may also dampen returns in rising markets.

Key Insights

What could put WAM Strategic Value on investors' radar this September is the arithmetic of its own pricing. The company reported a 24.8 per cent discount to look-through net tangible assets at 30 June 2026 while lifting its fully franked dividend and outperforming the market over FY2026. Whether that gap closes is the question the strategy is built around, applied for once to the manager itself.