This article first appeared on GuruFocus .
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Portfolio Performance:Down 4% for FY 2026, versus MSCI World Index up 14.8%.
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Returns Since Inception:8.2% per annum over the life of the fund.
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Dividends:Total FY 2026 dividend of $0.132 per share; final dividend $0.066 per share; dividend yield 6.7% (9.6% grossed up); over $1.10 paid since inception.
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Profit Reserve:$0.683 per share, equating to over 5 years of dividend coverage.
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Portfolio Earnings Growth:Portfolio companies grew earnings over 18% in FY 2026; expected 17%18% earnings growth in coming years.
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SaaS Sector:Significant detractor; together with exchanges and data accounted for ~75% of relative underperformance; valuation multiples derated 30%72%.
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Exchanges and Data Sector:Significant detractor; ICE stock down over 30% during the year despite beating all 4 earnings across the financial year.
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Portfolio Composition:~60% small/mid-cap, ~37% large-cap, ~11% in companies over $1 trillion (vs. 28% for the market), ~4% cash.
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Warning! GuruFocus has detected 11 Warning Signs with NHPEF.
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Is ASX:WGB fairly valued? Test your thesis with our free DCF calculator.
Release Date: September 14, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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WAM Global Ltd ( ASX:WGB ) increased its total dividend for FY 2026 to $0.132 per share, offering a 6.7% dividend yield (9.6% grossed up), supported by a substantial profit reserve of $0.683 per share, which equates to over five years of dividend coverage.
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The portfolio's underlying companies demonstrated strong fundamental performance, with the portfolio as a whole growing earnings by over 18% in FY 2026, and is expected to grow another 17-18% in the coming year.
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WAM Global Ltd ( ASX:WGB ) maintains a diversified portfolio across sectors and geographies, with about 60% invested in small/mid-cap companies, providing a buffer against the extreme market concentration seen in a few large-cap stocks.
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The investment team identified several undervalued opportunities in the SaaS and exchanges/data sectors, where companies like SAP, Intuit, and ICE saw significant price declines despite resilient earnings growth, creating attractive prospective returns.
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The fund has a strong long-term track record, generating 8.2% returns per annum since inception and having paid over $1.10 in dividends, demonstrating its ability to create value for shareholders over time.
Negative Points
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WAM Global Ltd ( ASX:WGB ) reported a disappointing FY 2026 performance, with the portfolio down 4%, significantly underperforming the MSCI World Index, which was up 14.8%.
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The fund's performance was heavily impacted by a narrow market where 80% of returns came from just four sectors (semiconductors, hardware, capital goods, and banks), and its diversified portfolio missed out on this concentrated rally.
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Key holdings in the Software as a Service (SaaS) and exchanges/data sectors were major detractors, accounting for approximately 75% of the relative underperformance, as the market perceived them to be at risk from generative AI.
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The company's share price fell by approximately 20% over the last 12 months, driven by a combination of portfolio underperformance, a movement from trading at a premium to a slight discount to NTA, and the impact of dividend payments.
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Currency movements were a headwind during the year, as the portfolio is unhedged and the appreciation of the Australian dollar against other major currencies negatively impacted returns for Australian-based investors.
Q & A Highlights
Q: Patrick and Garth asked about performance. In FY '25, the fund was up 19.4%, but FY '26 was tough, down 4.2%, while the broader market kept moving up. What lessons has the investment team learned and what concrete steps are you making over the next 12 months to improve relative returns? A: Catriona Burns (Lead Portfolio Manager) acknowledged the disappointing result but defended the fund's diversified approach, stating that going "all in" on the AI infrastructure trade would have been a mistake in hindsight from a prudent risk management perspective. She emphasized the team's extensive self-reflection and re-underwriting of investment theses, particularly for companies perceived as AI losers, which they believe still have strong earnings and significant upside.
Q: Tony asked about AI. Do you think AI is a bubble and could the funds or financing it is utilizing lead to a credit squeeze and recession? A: Nick Healy (Deputy Portfolio Manager) noted that historically, major technological innovations like the internet and railroads eventually lead to overcapacity and a correction. While acknowledging this risk, he emphasized the fund's diversified and valuation-disciplined approach, highlighting selective investments like Siemens Energy and TSMC. He also pointed out that enterprise adoption of AI is still in its very early innings, which should support future growth.
Q: Catriona, Mill has asked about the movement in the Australian dollar, which was a headwind during the year. Can you explain how currency movements affect WAM Global's performance and how the portfolio manages currency exposure? A: Catriona Burns (Lead Portfolio Manager) explained that the portfolio is unhedged, as shareholders wanted diversification away from the Australian dollar. She noted that the Aussie dollar's movements were a headwind for the year, particularly as the RBA was raising rates while the U.S. Fed was on hold, strengthening the U.S. dollar.
Q: Catriona, Mill has asked about the movement in the Australian dollar, which was a headwind during the year. Can you explain how currency movements affect WAM Global's performance and how the portfolio manages currency exposure? A: Catriona Burns (Lead Portfolio Manager) explained that the portfolio is unhedged, as shareholders wanted diversification away from the Australian dollar. She noted that the Aussie dollar's movements were a headwind for the year, particularly as the RBA was raising rates while the U.S. Fed was on hold, strengthening the U.S. dollar.
Q: Catriona, Mill has asked about the movement in the Australian dollar, which was a headwind during the year. Can you explain how currency movements affect WAM Global's performance and how the portfolio manages currency exposure? A: Catriona Burns (Lead Portfolio Manager) explained that the portfolio is unhedged, as shareholders wanted diversification away from the Australian dollar. She noted that the Aussie dollar's movements were a headwind for the year, particularly as the RBA was raising rates while the U.S. Fed was on hold, strengthening the U.S. dollar.
Q: Catriona, Mill has asked about the movement in the Australian dollar, which was a headwind during the year. Can you explain how currency movements affect WAM Global's performance and how the portfolio manages currency exposure? A: Catriona Burns (Lead Portfolio Manager) explained that the portfolio is unhedged, as shareholders wanted diversification away from the Australian dollar. She noted that the Aussie dollar's movements were a headwind for the year, particularly as the RBA was raising rates while the U.S. Fed was on hold, strengthening the U.S. dollar.
Q: Catriona, Mill has asked about the movement in the Australian dollar, which was a headwind during the year. Can you explain how currency movements affect WAM Global's performance and how the portfolio manages currency exposure? A: Catriona Burns (Lead Portfolio Manager) explained that the portfolio is unhedged, as shareholders wanted diversification away from the Australian dollar. She noted that the Aussie dollar's movements were a headwind for the year, particularly as the RBA was raising rates while the U.S. Fed was on hold, strengthening the U.S. dollar.
Q: Catriona, Mill has asked about the movement in the Australian dollar, which was a headwind during the year. Can you explain how currency movements affect WAM Global's performance and how the portfolio manages currency exposure? A: Catriona Burns (Lead Portfolio Manager) explained that the portfolio is unhedged, as shareholders wanted diversification away from the Australian dollar. She noted that the Aussie dollar's movements were a headwind for the year, particularly as the RBA was raising rates while the U.S. Fed was on hold, strengthening the U.S. dollar.
Q: Catriona, Mill has asked about the movement in the Australian dollar, which was a headwind during the year. Can you explain how currency movements affect WAM Global's performance and how the portfolio manages currency exposure? A: Catriona Burns (Lead Portfolio Manager) explained that the portfolio is unhedged, as shareholders wanted diversification away from the Australian dollar. She noted that the Aussie dollar's movements were a headwind for the year, particularly as the RBA was raising rates while the U.S. Fed was on hold, strengthening the U.S. dollar.
Q: Catriona, Mill has asked about the movement in the Australian dollar, which was a headwind during the year. Can you explain how currency movements affect WAM Global's performance and how the portfolio manages currency exposure? A: Catriona Burns (Lead Portfolio Manager) explained that the portfolio is unhedged, as shareholders wanted diversification away from the Australian dollar. She noted that the Aussie dollar's movements were a headwind for the year, particularly as the RBA was raising rates while the U.S. Fed was on hold, strengthening the U.S. dollar.
Q: Catriona, Mill has asked about the movement in the Australian dollar, which was a headwind during the year. Can you explain how currency movements affect WAM Global's performance and how the portfolio manages currency exposure? A: Catriona Burns (Lead Portfolio Manager) explained that the portfolio is unhedged, as shareholders wanted diversification away from the Australian dollar. She noted that the Aussie dollar's movements were a headwind for the year, particularly as the RBA was raising rates while the
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
