The WAM Leaders Ltd (ASX: WLE) fund is paying a dividend yield of 7.2%, fully franked, after its investment portfolio returned 14% for the year.
The 4.8 cent per share final dividend brings the total shareholder return for the year to 24.7%, while the grossed up dividend yield including franking credits comes in at 10.3%.
Fund has been performing well
Lead Portfolio Manager Matthew Haupt said it was a solid year.
He added:
The 2026 financial year was characterised by changing interest rate expectations, geopolitical tensions, global trade disruption and evolving views on the sustainability of artificial intelligence-led growth. These conditions created periods of volatility and meaningful shifts in market leadership, generating opportunities for active investors. The investment team and I adjusted portfolio positioning as conditions evolved, including maintaining exposure to areas of the market where we saw attractive risk-adjusted opportunities, while remaining disciplined on valuation. This approach enabled the investment portfolio to outperform the S&P/ASX 200 Accumulation Index during the year.
Mr Haupt said the fund would remain focused on high-quality companies trading at attractive valuations.
He added:
Periods of market volatility can create opportunities for active managers, and the investment portfolio is positioned to take advantage of these opportunities as they emerge.
Chair Geoff Wilson said the strong investment performance contributed to a 153.5% increase in operating profit after tax of $161.8 million.
WAM Leaders has increased in value by 12% per year since listing in 2016, while also paying out dividends.
Resources and financials paying off
The fund’s investments include materials at 24.8%, financials at 20.9%, real estate at 13.6% and consumer discretionary at 10.9%.
In terms of stocks its largest holdings are in BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia Ltd (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Wesfarmers Ltd (ASX: WES).
The fund also on August 10 announced a share purchase plan, allowing shareholders to subscribe for up to $30,000 in new shares.
The fund added:
The Board also announced the successful completion of a placement to professional and sophisticated shareholders. Bids exceeded the initial target raise which resulted in the placement bookbuild closing early and allocations being subject to scale back. The final placement size was increased to $225 million in response to the excess demand. The additional capital will enable the investment team to take advantage of investment opportunities for the benefit of all WAM Leaders shareholders.
WAM Leaders shares were changing hands for $1.33. The fund is valued at $2.06 billion.
