an investor

ts up 13%
Email Print Normal font Large font February 3, 2006

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AdvertisementGEOFF Wilson's listed investment company WAM Capital grew its total assets by more than 13 per cent in the first half despite having hardly any exposure to the high-flying resources sector.

Net profit after tax rose 12 per cent to $9.2 million for the six months to December 31 and the fund will pay a fully-franked dividend of 7c, up from 6c a year ago.

WAM Capital's gross assets increased 13.3 per cent over the six months, slightly below the 13.8 per cent rise in the All Ordinaries Accumulation index.

But Mr Wilson said he was "extremely pleased we were able to produce such a result while having such a low exposure to the resource sector".

WAM Capital tends to focus on smaller companies and has several holdings in the financial services sector.

Stocks that performed well for the fund included debt collection company Credit Corp, insurance broking group OAMPS and agribusiness group Select Harvest.

Those that dragged down the performance were diversified manufacturer Nylex and general insurer Calliden.

WAM Capital is an active manager. In the half, it turned over its portfolio twice. Over the period, it held an average 26 per cent of its portfolio in cash.

Shares in WAM Capital closed up 1.5c yesterday to $1.465. But they are still trading at a discount to their net asset backing of $1.61.

Lisa Murray