Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
WAM Global Reports FY2026 Portfolio Decline as Valuation Pressures Weigh on Returns
Highlights:
FY2026 Results Reflect Challenging Market Conditions
Wilson Asset Management Global (ASX: WGB) outlined its FY2026 investment performance during its full-year results Q&A webinar on 15 September 2026. The presentation reviewed a challenging period for global equities, characterised by concentrated market leadership and strong performance from a relatively narrow group of technology-related stocks.
The investment portfolio returned -4.2% for the 12 months ended 30 June 2026, before expenses, fees, taxes and the impact of capital management initiatives. Since inception in June 2018, the portfolio has delivered an annualised return of 8.2%, according to the presentation.
Software and Financial Data Stocks Weigh on Performance
Software and business services holdings were major contributors to the portfolio’s underperformance during FY2026. The presentation identified eight holdings across software, exchanges and financial data businesses as accounting for more than 75% of the relative underperformance, estimated at approximately 15 percentage points. Within software, Intuit contributed -4 percentage points, SAP -3 percentage points, Procore Technologies -1 percentage point and Synopsys -1 percentage point. Together, these holdings accounted for a 9-percentage-point impact.
Exchanges and data businesses also weighed on returns. Intercontinental Exchange and Tradeweb Markets each contributed -2 percentage points, while TransUnion and MarketAxess Holdings each contributed -1 percentage point. The combined impact from these holdings was 6 percentage points. Despite weaker share prices, WAM Global expects earnings growth to remain strong across several of its software investments. The presentation attributed much of the market decline to lower valuation multiples rather than a deterioration in expected earnings.
Earnings Growth and Valuation Opportunities
The portfolio recorded 18% earnings growth during FY2026, while the change in price-to-earnings multiples reduced performance by 16 percentage points. Currency movements also affected results, with the portfolio returning 2% in local currency before the impact of exchange rates.
WAM Global emphasised its strategy of identifying quality international businesses with sustainable earnings growth and catalysts that could improve market perceptions. Potential catalysts include acquisitions, product developments and changes in investor sentiment. The presentation highlighted previous acquisitions involving Masimo, JTC and Allfunds, which attracted premiums of approximately 38%, 49% and 32%, respectively. These examples illustrated how corporate transactions can unlock value for investors.
Dividend Position and Portfolio Strategy
WAM Global reported a fully franked dividend yield of 6.7% and a grossed-up yield of 9.6%, based on the 14 September 2026 share price of AU$1.965 and the FY2026 full-year dividend of 13.2 cents per share.
The portfolio continues to focus on international businesses across technology, healthcare, industrials and financial infrastructure, with an emphasis on long-term earnings growth and attractive valuations.
Conclusion
WAM Global’s FY2026 results highlighted the difference between underlying earnings growth and short-term share price performance. While valuation pressures affected returns, the manager continues to seek opportunities among quality global businesses with durable earnings and identifiable catalysts.
Note- All data presented is based on information available at the time of writing.
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