WAM Research Limited (ASX: WAX) has reported its result for the six-month period to 31 December 2018.
WAM Research said that its investment portfolio decreased by 11.1% during the half-year compared to the ASX All Ordinaries which only fell by 7.3%. Market volatility, falling housing prices, diminishing consumer & business sentiment and the Royal Commission all hurt ASX shares.
Dividends are a key component of WAM Research returns, it has increased the dividend by 2.1% to 4.85 cents per share in the December 2018 half-year.
The listed investment company (LIC) said that to preserve its portfolio value it increased its cash position to 53.3% by the end of 2018, although it has since reduced that to 35.1%.
WAM Research also said that its investment portfolio has increased by 3.8% in the month to date.
According to Chairman and CIO Geoff Wilson, WAM Research's holdings that performed well were Scottish Pacific Group Limited (ASX: SCO), Jumbo Interactive Ltd (ASX: JIN), Bravura Solutions Ltd (ASX: BVS), Pinnacle Investment Management Group Ltd (ASX: PNI) and IPH Ltd (ASX: IPH).
Some of the not-so-good ones were Emeco Holdings Limited (ASX: EHL), Gtn Ltd (ASX: GTN), Seven West Media Ltd (ASX: SWM), FlexiGroup Limited (ASX: FXL) and Worleyparsons Limited (ASX: WOR).
Is WAM Research a buy?
With the United States Federal Reserve making an unexpected about-face about its policy, WAM Research is a bit more confident about shares in the shorter-term.
With an annualised dividend of 9.7 cents per share it has a grossed-up dividend yield of 10%. This is a very attractive yield in today's low interest world, but it requires WAM Research to continue to generate strong investment returns considering the high premium to NTA.
