The after-tax figure was boosted by $8.5 million from its profit before tax of $6 million, accounting for franking credits received on franked dividend income from investee companies.
WAM Capital saw its revenue from ordinary activities sink by 86.3 per cent to $25.7 million.
Management fees revenue generated a loss of $13.6 million, while other revenue accounted for $44.1 million.
The investment manager said its full-year profit reflected the performance of its investment portfolio during “heightened volatility in the Australian equity market”.
“We remain cautious about the direction of the Australian market, as the record-low interest rates have driven up valuations and increased speculation,” WAM chairman Geoff Wilson said.
WAM Capital had an unrealised loss of $18.3 million from its financial investments.
The company’s net tangible assets before tax slipped by 1.3 per cent in the year to $1.84.
The board declared fully franked final dividend of 7.75 cents.
WAM Capital now has 80,000 shareholders across its six listed investment companies.
Sarah Simpkins
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
