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Highlights
- SRG Global’s (SRG) strong contract wins fueled WAM Active (WAA) portfolio growth in December 2024.
- SRG's impressive 106.7% price jump in 2024 and prospects for ASX 300 inclusion catch investor interest.
- WAM Active's solid performance continues, outperforming major market indexes and delivering attractive dividends.
December 2024 saw impressive growth for the WAM Active (ASX:WAA) portfolio, driven primarily by SRG Global’s (ASX:SRG) stellar performance amid year-end market fluctuations. Wilson Asset Management (WAM) highlighted SRG’s contribution after the engineering and construction firm secured significant contracts, including $700 million from repeat clients in the water, dairy, and resource sectors.
This led to SRG’s share price rising to $1.385 by 31 December 2024, marking a remarkable 106.7% increase over the 2024 calendar year. WAM notes that the low-liquidity environment during December amplified the movement in SRG’s share price, with a strong market sentiment, bolstered by anticipation of SRG’s potential inclusion in the ASX 300 index by March 2025. Investors were also optimistic about SRG's expected upside in FY25 earnings, which further buoyed the stock's momentum.
However, the robust December performance of SRG only partially offset a setback from Life360 (ASX:360), the location-sharing service provider. The latter’s share price dropped 10.9% in December after continued share sales by CEO Chris Hulls, dampening the overall portfolio’s performance. As a result, WAM Active’s net tangible assets per share (before tax) fell slightly to $0.8612, down from $0.887 in November 2024. Despite this, the portfolio has delivered an 11.5% return since its inception in January 2008.
WAM Active aims to provide a steady income stream and capital preservation, offering fully franked dividends. For the year ending 31 December 2024, the fund will pay a dividend of $0.06 per share, yielding 7.3% fully franked and 10.4% grossed-up. The performance has consistently outperformed key indices, with a 28% outperformance over the Bloomberg AusBond Bank Bill Index and a 21.1% advantage over the S&P/ASX All Ordinaries.
Meanwhile, WAM Strategic Value has also shown solid growth. The portfolio, which holds assets in Salter Brothers Emerging Companies (ASX:SB2) and Regal Asian Investments (ASX:RG8), outperformed the S&P/ASX All Ordinaries in December, despite a broader market decline of 3.1%. The portfolio’s net tangible assets per share increased to $1.2557 from $1.2488 the previous month.
As WAM remains optimistic about the upcoming falling interest rate environment, it suggests this could stimulate demand for quality, high-yielding assets that offer stable, predictable income—positions which will place listed investment companies and trusts as strong candidates for long-term growth.
For the full year, WAM Strategic Value will pay a dividend of $0.0625 per share, including a special dividend of $0.01 per share. This represents a 50% increase in the dividend payout, demonstrating the strength of the portfolio’s performance.
