Here’s how the fund performed last month, and the ASX shares it has been buying to deliver a strong investment portfolio performance.
The WAM Capital investment portfolio focuses on undervalued growth opportunities in the ASX. The portfolio has increased 22.8% in the financial year to date, outperforming the index by 7.1%.
In December, WAM Capital investment portfolio outperformed the All Ordinaries Index (ASX: XAO). The ASX shares that led to its outperformance included affordable accommodation and services provider Ingenia Communities Group (ASX: INA) and mortgage broker and financial solutions provider Australian Financial Group Ltd (ASX: AFG).
WAM Capital is focused on translating portfolio returns into a market leading, sustainable source of income for its shareholders. The company has more than a decade of increasing or steady dividends, and currently has a fully franked dividend yield of approximately 7%.
The WAM Leaders portfolio takes a much more active approach to investing in the highest quality Australian companies. The portfolio has increased 17.1% in the financial year to date, outperforming the S&P/ASX 200 Index (ASX: XJO) by 3.9%.
The portfolio’s outperformance in December was driven by ASX shares in the materials and mining sector.
IGO Ltd (ASX: IGO) is an exploration and mining company producing nickel, copper and gold. Its share price ripped 45% in December following stronger nickel and copper prices, as well as the company’s acquisition into the lithium sector. WAM sees the entry into lithium as one that aligns with its long term strategic plan to support the structural shift into battery storage. IGO noted that electric vehicle sales are expected to grow approximately 18% per annum through to 2030.
BHP Group Ltd (ASX: BHP) was also another significant contributor, driven by higher iron ore, oil, nickel and copper prices. WAM expects oil prices to be supported by a continued recovery in COVID-related demand such as travel and industrial production in the near term. WAM is also constructive on nickel and copper for the same reasons relating to electric vehicle sales that were noted in IGO.
These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)
Motley Fool Australia's Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.
Our team of investors think these 3 dividend stocks should be a 'must consider' for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.
Don't miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.
Returns As of 15th February 2021
Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
- 4 ASX shares that helped this fund outperform in December – January 15, 2021 3:55pm
- Why the PointsBet (ASX:PBH) share price is hitting record highs – January 15, 2021 1:10pm
- This broker calls ANZ (ASX:ANZ) shares as the preferred bank pick – January 15, 2021 12:24pm