WAM Capital posts $91.5m loss for H2

WAM Capital funds management financial reporting

27 February 2019
| By Oksana Patron |
image
image
expand image

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.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

3 hours 56 minutes ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 9 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 7 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 10 hours ago