WAR Investment Portfolio Drops in March 2026
WAM Strategic Value Limited (ASX: WAR), a listed investment company managed by Wilson Asset Management, reported a decline in its investment portfolio during March 2026. Despite the fall, the portfolio outperformed the broader Australian equity market over the same period.
WAM Strategic Value Limited (ASX: WAR) reported a portfolio decline in March 2026, outperforming the broader Australian equity market amid heightened volatility. [TradingView]
The fund’s net tangible assets (NTA) per share before tax fell from 131.88 cents in February 2026 to 124.59 cents in March 2026. The March figure is recorded before the payment of a fully franked interim dividend of 3.25 cents per share, which is scheduled for 29 May 2026.
Share Price and NTA Discount Widen
At the close of March 2026, WAR shares traded at $1.095. The company’s look-through pre-tax NTA stood at an estimated $1.40 per share, indicating that shares traded at a notable discount to the underlying asset value of the portfolio.
WAR shares have since recovered modestly. The stock most recently traded at $1.160, with a bid/offer range of $1.150 to $1.160. Trading volume reached 47,753 shares, and the company’s market capitalisation stands at $208.94 million.
Wilson Asset Management Share Price [ASX]
The share price remains below the March look-through pre-tax NTA of $1.40, suggesting the discount to underlying asset value persists.
The look-through NTA is an estimate calculated using the most recently available pre-tax NTA figures of the underlying investments. Wilson Asset Management notes that this figure carries no guarantee of accuracy or completeness.
Cash Weighting Increased to Protect Shareholder Capital
The investment team at Wilson Asset Management took deliberate steps to raise the cash weighting within the portfolio during March 2026. This move aimed to protect shareholder capital and retain flexibility to act on opportunities as market conditions shifted.
Cash levels within the portfolio have risen steadily over the past three months, following a period of active capital deployment in late 2025.
The manager described this as a disciplined response to market conditions, choosing to commit capital only where a clear balance between downside risk and potential return exists.
The manager stated that preserving capital and taking the least amount of risk necessary to generate long-term returns remain core objectives. A higher cash position allows the fund to act quickly when pricing anomalies or clear investment catalysts appear.
Regal Asian Investments Weigh on Performance
Regal Asian Investments (ASX: RG8) was the primary detractor from the WAR portfolio during March 2026. The listed investment company, which focuses on long and short positions across Asian equity markets, saw its share price fall 13.9% through the month.
Regal Asian Investments (ASX: RG8) fell 13.9% in March 2026 despite delivering a 12-month net portfolio return of approximately 70%, as investors sought liquidity in a risk-averse environment. [IStock]
The decline came despite a strong recent performance. Regal Asian Investments delivered a 12-month net portfolio return of approximately 70% for the period ended 31 March 2026, driven in part by strength in Korean and Japanese technology markets. However, investors sought liquidity during the month as market sentiment turned risk-averse.
As at 3 April 2026, Regal Asian Investments continued to trade at a discount of approximately 15.2% to its NTA. Wilson Asset Management maintains that the fund’s track record and specialist management team provide a catalyst for narrowing that discount over time.
Fully Franked Dividend Declared for May 2026
The WAR board declared a fully franked interim dividend of 3.25 cents per share for the first half of FY2026. The dividend is payable on 29 May 2026, with shares trading ex-dividend from 1 May 2026.
The WAR board declared a fully franked interim dividend of 3.25 cents per share, payable 29 May 2026, reflecting a grossed-up dividend yield of 8.4%. [Westpac]
On an annualised basis, the interim dividend stands at 6.5 cents per share. Based on the 31 March 2026 share price of $1.095, this translates to an annualised fully franked dividend yield of 5.9%. When including the value of attached franking credits, the grossed-up dividend yield reaches 8.4%.
The company has paid 18.75 cents per share in dividends since its inception in June 2021. Including franking credits, the total value returned to shareholders reaches 26.8 cents per share. The current profits reserve stands at 23.0 cents per share, underpinning the company’s capacity to continue paying dividends.
Portfolio Composition Reflects Global LIC Focus
WAR manages total assets of $226.7 million, with an investment portfolio performance of 6.7% per annum since inception in June 2021. The portfolio is diversified across several asset types. Global equities LICs and LITs account for 50.7% of the portfolio. Domestic equities LICs and LITs represent 17.5%. Listed property funds hold a 4.8% weighting. Direct discount assets make up 1.3%. Cash and cash equivalents account for the remaining 25.7%.
The top 20 holdings include Regal Asian Investments, Regal Partners Global Investments, Ophir High Conviction Fund, Pengana International Equities, WCM Global Growth, and Carlton Investments, among others.
Investment Process Targets Discounted Asset Opportunities
WAM Strategic Value follows a four-step investment process designed to capitalise on share price discounts to underlying asset values. The process begins with screening the investment universe for discounted opportunities. The team then analyses each opportunity for risk, return, and liquidity before investing when a catalyst is identified. Ongoing engagement with company boards, management, and investors forms the final stage of the process.
The fund focuses primarily on listed investment companies and listed investment trusts, which are also known as closed-end funds. This specialist approach positions WAR to benefit when the gap between market price and underlying asset value closes.
Also Read: Why Westpac Is Warning Investors Before May Results
Shareholder Presentations Scheduled Across Australia
Wilson Asset Management and Future Generation will hold shareholder presentations in multiple Australian cities throughout late April and early May 2026. Events are scheduled in Canberra on 21 April, Sydney on 22 April, Brisbane on 23 April, Melbourne on 28 April, Perth on 29 April, Adelaide on 30 April, and Hobart on 1 May 2026.
Each event follows a consistent format, beginning with registration at 9:30 am, followed by investment updates at 10:00 am, and lunch at noon. Sydney and Melbourne sessions will also feature a panel discussion at 12:45 pm with Geoff Wilson AO, The Australian Financial Review, and the Future Generation team. Shareholders can register via the Wilson Asset Management website.
FAQs
Q1: Why did WAM Strategic Value’s portfolio decline in March 2026?
A1: The decline was driven by global market volatility and weaker performance from key holdings, particularly Regal Asian Investments.
Q2: Did WAR outperform the broader market despite the drop?
A2: Yes, despite the portfolio decline, WAR still outperformed the broader Australian equity market during March 2026.
Q3: What happened to WAR’s Net Tangible Assets (NTA)?
A3: The pre-tax NTA per share fell from 131.88 cents in February to 124.59 cents in March 2026.
Q4: Why did Wilson Asset Management increase cash holdings?
A4: The firm raised cash levels to protect capital and maintain flexibility to invest in opportunities during uncertain market conditions.
Q5: How did Regal Asian Investments impact performance?
A5: Regal Asian Investments was the main detractor, with its share price falling 13.9% during March 2026.
Q6: What dividend has WAR announced?
A6: WAR declared a fully franked interim dividend of 3.25 cents per share, payable on 29 May 2026.
Q7: Is WAR trading at a discount to its asset value?
A7: Yes, WAR shares are trading below their estimated look-through NTA, indicating a persistent discount to underlying asset value.
Q8: What is the current portfolio allocation of WAR?
A8: The portfolio includes global LICs/LITs (50.7%), domestic LICs/LITs (17.5%), listed property (4.8%), direct assets (1.3%), and cash (25.7%).
Disclaimer:
This article is published by Colitco for informational purposes only and does not constitute financial, investment, or legal advice. The content is based on publicly available information and company disclosures related to WAM Strategic Value (ASX: WAR). Readers should conduct their own research or consult a licensed financial advisor before making any investment decisions. Colitco does not hold any position in the securities mentioned and accepts no liability for any loss arising from the use of this information.
Sources
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-03078426-2A1666313
https://www.asx.com.au/markets/company/WAR
Tags: * ASX: WAR * *WAM Strategic, ASX: WAR, WAM Strategic Value, Wilson Asset Last modified: April 14, 2026
