WAM Capital Limited is the latest investment house to ride the coattails of the increasingly prosperous self-managed superfund industry, with trustees investing over $130 million in the listed investment company (LIC) over the last 12 months.
Company results released earlier today show the LIC recorded operating profit before tax of $69.5 million – up 119% – in the half-year to December 2013, with SMSFs accounting for more than 40 per cent of the company’s issued capital.
The company invests in undervalued growth companies, offering investors returns of 14.2% over the last six months.
WAM Capital says it hopes these results will continue to attract do-it-yourself super trustees in 2014.
“The growth of SMSFs has been a major benefit for WAM Capital,” Chairman Geoff Wilson said.
“As this sector of the industry grows, so too will demand for well-managed, dividend-yielding listed investment companies.”
SMSFs are the fastest growing sector of the superfund industry, with more than 35,100 new DIY funds established in the 12 months to September 2013.