Actively managed funds have fallen out of favour somewhat in recent years as investors have flocked to exchange-traded funds (ETFs), but if you know where to look, there are some great returns to be had in the managed fund sector.
Two of those that have been performing well are from Geoff Wilson's Wilson Asset Management stable, with the $2.1 billion WAM Capital Ltd (ASX: WAM) a good starting place.
This managed fund has been around since 1999, and in recent years, one of the great things about it is its steady dividend payments.
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Consistent returns
The fund has paid dividends every year since its formation and, in the past few years, has kept its final and interim dividends steady at 7.75 cents, franked to 60%.
Calculated at the current share price of $1.83, that's a trailing dividend yield of 8.47%.
The fund recently put out an investment update, which indicated its investment portfolio performance since inception back in 1999 was 15.3%, compared with the All Ordinaries Index's of 8.6% over the same period.
Some of WAM Capital's top holdings include Life360 Inc (ASX: 360), A2 Milk Company Ltd (ASX: A2M), and Flight Centre Travel Group Ltd (ASX: FLT).
Recent dividend boost
Also from the Geoff Wilson stable is WAM Active Ltd (ASX: WAA), a much smaller fund with a value of $82.6 million.
WAM Active has also been a steady dividend payer and recently announced an increased interim dividend of 3.2 cents per share as well as a special dividend of 1 cent per share.
This brought the annualised interim dividend yield up to 6.5%, or 9.3% grossed up.
Mr Wilson said at the time that the six-month investment portfolio performance for the fund had been the best since its inception 18 years ago, allowing the fund to pay the increased dividends, which are still available for investors, given the ex-dividend dates for each are in May and June.
Deputy portfolio manager Shaun Weick said the fund had been positioning itself in precious and base metals "as we believe these companies are well-positioned for near-term outperformance as the US continues to reduce interest rates, global growth improves and the US dollar moves lower''.
Some of WAM Active's top 20 holdings include Capstone Copper Corp (ASX: CSC), Zip Co Ltd (ASX: ZIP), and Alcoa Corporation (ASX: AAI).
The third fund, which is looking attractive from a trailing dividend yield perspective, is the Ophir High Conviction Fund (ASX: OPH), which is sitting on trailing returns worth 8.3%, unfranked.
Ophir's dividends have been less predictable than those of the previous two funds, but its portfolio performance since inception in 2012 has been robust, at 14%, easily surpassing its benchmark target.
Some of Ophir's top holdings include Megaport Ltd (ASX: MP1), ResMed Inc (ASX: RMD), and Infratil Ltd (ASX: IFT).
