In the Annual General Meeting, WAM Capital (ASX: WAM) emphasised on the continued growth in returns from investment portfolio with a decent performance in FY17 based on a rise of 11.7% over the period. Further, the return on the equity portion of the portfolio was 17.2% and the return on the cash portion of the portfolio was 1.9% for the year. The full-year shareholder return for WAM was 14.1% at the back of investment portfolio performance and the continued increase in the share price premium to NTA. On November 28, 2017, the premium was 22.9%, after the payment of the fully franked 7.5 cents per share final dividend against the share price premium to NTA of 24.5% as at 30 June 2017. On the other hand, the group’s assets have grown tremendously.

WAM has started FY18 on a positive note with a conservative balance sheet, a high cash weighting, no debt and a flexible and proven investment approach. The group expects to have a continued period that can proffer great buying opportunities given the macro economic scenario.

WAM stock has plunged by 4% in last three months (as at November 28, 2017) owing to volatile conditions. Further, there was some performance offsetting due to investment portfolio recording of 7.1% against the market’s figure of 9.2% owing to WAM’s risk averse strategy adoption. Given some level of weakness seen lately, we put a “Hold” on the stock at the current price of $2.37
 

Diversified Portfolio (Source: Company Reports)

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