WAM Active Limited has reported a lower operating profit for the half year period, ended in December, due to the change of the investment portfolio between the periods.
At the end of that period, the company’s operating profit before tax stood at $1.78 million compared to $3.6 million a year ago, and its operating profit after tax dropped to $1.3 million from $2.6 million at the end of 2015.
Its investment portfolio increased 7.4 per cent against 14.4 per cent growth during the first six months of 2015.
WAM Active’s chairman, Geoff Wilson said: “The 7.4 per cent increase in the investment portfolio was achieved with an average 29 per cent cash weighting”.
The company also said it would pay a fully interim dividend of 2.75 cents per share and this represented an annualised fully franked dividend yield of 4.7 per cent.
WAM’s investment team said it remained positive in terms of the equities market for 2017.
WAM chief investment officer, Chris Stott, said: “Even with a slightly more positive outlook it is worth noting we are in the mature stages of an eight-year bull market that is showing signs of fatigue”.
“Traditionally the quality of new IPOs [initial public offerings] is generally highest at the start of the bull market cycle and, as we near the end of the current cycle, the quality of new company floats is generally diminishing,” he said.
“Looking ahead, we expect the market will continue to be heavily influenced by global events and despite our generally positive new, we anticipate further volatility given the high degree of uncertainty surrounding the implementation of President Trump’s election policies.”
