Good morning. I'd like to welcome and thank everyone for joining us today for the WAM Capital Limited, WAM Microcap Limited, WAM Research Limited, and WAM Active Limited full-year 2025 results webinar. My name is Tobias Jarl, and I'm the Portfolio Manager across the four funds we manage. With me today is Sean Whyte, Deputy Portfolio Manager. Emma Coleridge is also on the call. She will be moderating the question and answer session. Before we begin, a disclaimer is displayed for you, and as a reminder, what we discuss today is general in nature and should not be construed as financial advice. We also want to express our gratitude for the support of all of our shareholders. We are all investors in the LICs ourselves, and thank you for allowing us the opportunity to manage your capital. As Jeff always says, these are your companies, and we love to get the questions from you, so feel free to send through your questions for the Q&A session. In terms of how the call will run today, I'll give an update on the 2025 financial year and our current views on the market. I will then hand it over to Sean, who will discuss the recent reporting season and how we've positioned the fund. We'll both provide two stock picks before moving on to the Q&A session. I think the last 12 months have been extremely volatile. When we had the webinar six months ago, we were right in the thick of things. The Trump's Liberation Day, the tariff war induced significant dislocations in the equity markets. This was further exacerbated by the various geopolitical tensions. The market was actually very volatile. As we've seen with previous market uncertainty and turmoil, the team rallied together. We focused on what we can control. More importantly, we focused on sticking to our investment process. For those of you that have been with us along the journey, the investment process hasn't changed since when Jeff first started the business close to 30 years ago. That is to find and invest in undervalued growth companies with catalysts that could re-rate the share price over time. Luckily, the team has done a good job in acting decisively and playing offense and using the market volatility as an opportunity to replenish our portfolio with high-quality companies with catalysts that we are holding, that we think will get paid over the next one, two, and three years. Now, with that said, let's look at the 2025 full-year results. I'm pleased to report that all funds outperformed their benchmarks in 2025. WAM Capital Limited and WAM Research Limited outperformed the Ordinaries Index by 9% and 9.2% respectively in 2025. WAM Capital Limited and WAM Research Limited also outperformed the Small Ordinaries Index by 9.9% and 10.1% respectively. WAM Microcap Limited outperformed the Small Ordinaries Index by 6.5%. We were very pleased with the performance of WAM Active Limited. The investment portfolio returned 26.4% for the financial year. On the next slide, you can see the dividends announced for each of the funds and the current yield based on the share price as at yesterday. Given the companies which we invest in, our performance against the Small Ordinaries Index is probably more representative of the stock selection process, given 50% of the All Ordinaries Index is in banks and resources, which is outside of our investable universe, given it doesn't really fit with our investment process. We've spoken about the underperformance of small-cap companies over the last four years versus the broader market. So far this year, luckily, we've seen a reversal of this trend. The Small Ordinaries Index is up about 5% relative to the broader market. As we've spoken about this in the past, one of the reasons is the reduction in interest rates in Australia. We are quite positive on the next 12 months for small-cap investing. Now I'd like to pass it on to Sean Whyte to provide a summary of the reporting season and also how we're positioning the fund. Great. Thanks, Tobias. Thank you all for joining us today. I'm obviously pleased to share our insights from the recent reporting season, outline some key market themes, and discuss our portfolio strategy to capitalize on the emerging opportunities in the Australian equity market, with a particular focus on our expectations for a period of small-cap outperformance. In terms of the reporting season we just had, the ASX Industrials delivered robust performance this reporting season. We saw around 11% net earnings beat with resilience of margins, the key feature. Small-cap companies were the standout. They posted a solid 21% net earnings beat ratio, driving share price gains that outpaced their large-cap peers. As Tobias mentioned, this has been a reversal of the trend we have observed over the past four years. Why is this happening? It's RBA rate cuts, and we think an improving economic outlook, which is supporting the early stages of a rotation into small caps. We've observed increased investor attendance at group presentations throughout reporting season, which is consistent with broker feedback suggesting renewed interest in, you know, what are more economically sensitive smaller companies, which is a dynamic that's consistent with this stage of the economic cycle. However, the period was not without its challenges. One particular thing I'd call out was the share price volatility. This reached truly extreme levels at times, among the highest in recent memory, which we'd attribute to the rising influence of systematic investment, investing, and also passive strategies. This volatility, while challenging, does present very compelling trading opportunities, in particular for the WAM Active strategy. A prime example of this was Megaport, which saw its share price drop around 20% at the open due to perceptions of an earnings downgrade with aggressive reinvestment flagged for the FY2026 outlook. Our analysis, I suppose, supported a contrarian view to this. We believe a sustained reacceleration in revenue growth is really what aligns with, I guess, investor priorities. Given management's proven ability to deliver operating leverage in the past, this conviction was validated as the stock rallied over 20% during the earnings call and really reflects growing confidence in CEO Michael Reed's strategic vision for the business. I suppose digging in a bit deeper now into some of the market themes that I would highlight from the reporting period, it's very clear to us now that falling interest rates are driving positive momentum across the Australian economy, particularly in the consumer discretionary sectors, with CEOs much more optimistic in the conversations we had versus 12 to 18 months ago. Our portfolio maintains an overweight position in this space. We've got holdings such as AP Eagers, Harvey Norman, which reported 8.5% like-for-like growth in current trading, and Nick Scali, which was up about 7%. You're clearly seeing strong momentum flow through from these initial rate cuts that we've had so far, which really does reflect their sensitivity to this interest rate dynamic. The housing sector, broad-based, is also benefiting. Companies like mortgage aggregator AFG reported very robust lodgement activity. Land lease communities operators like GemLife exceeded their prospectus forecasts, and peers such as Ingenia and Aspen Group delivered earnings upgrades driven by higher home settlements. In the construction materials space, Maas Group's optimistic outlook positions it as a rare pure play beneficiary of the broad-based spend we're seeing in infrastructure and the resi market. Amid geopolitical uncertainties and tariff-related risks, we have maintained a bit of a strategic tilt towards domestically focused companies. The mining services sector recorded what I think was its strongest reporting period in a decade. Companies like Monadelphous, SRG Global, NRW Holdings, and Tasmea Limited posted significant share price gains. Robust commodity prices, gold's obviously at record highs, iron ore is hanging in very strongly. Tight labor markets and a strong capital expenditure outlook are seeing negotiating power much more evenly balanced. This is paving the way, we believe, for continued margin expansion in the sector. Within the tech space, we think results were probably more mixed there, but we're encouraged by the exceptional performance of some of our key holdings, the likes of Life360 and Energy One, which posted really strong results and maintained attractive growth outlooks. Global optimism around artificial intelligence continues to drive elevated capital expenditure expectations. This morning we've just seen Oracle come out with some huge upgrades. The stock's up 27% after market. From a domestic point of view, exposure to this trend does remain relatively limited in terms of the way to play it. We think Megaport's the highest quality, capital-light play in this space, and it's very well positioned to capitalize on this AI-driven infrastructure demand. Moving on to the outlook, looking ahead, equity markets have staged a strong recovery post Liberation Day, but we remain constructive on the outlook, particularly for domestic small caps, which we believe are in the early stages of sustained outperformance. We've got improving economic indicators such as rising house prices, increasing consumer spending, and positive business surveys reinforcing our optimism for the Australian market. Global risks, there clearly are some tariffs, geopolitical instability, some bond market volatility. We're always mindful of what's happening on the global front, but our base case anticipates continued global monetary easing, which should help sustain some cyclical momentum, we believe. On top of that, you've got the ongoing AI-driven capital expenditure boom, which is bolstering global equity investor confidence, we think, into year-end. Portfolio positioning, we think the portfolios are really well positioned to catch the upside from this improving domestic economic cycle. Cash levels are at approximately 12% at the moment, so we're retaining ample flexibility to seize on emerging opportunities. It's really pleasing to see that deal activity has accelerated in recent weeks with companies raising capital to fund growth initiatives, including earnings accretive acquisitions. A notable example within our portfolio is Tobias's favorite stock, 2RS Limited, which executed a transformative acquisition in the Singaporean telco market. The IPO market's also showing signs of revitalization. We've had successful listings of Gemlife, Virgin as well, and from our conversations with ECM teams, there's a robust pipeline of future deals. This environment supports our overweight exposure to small caps, which we believe are well positioned to benefit from ongoing cyclical tailwinds. From a valuation standpoint, small caps do remain attractive relative to large cap peers and are supported by stronger earnings momentum in our view. We're maintaining a disciplined approach that focuses on high-quality companies with strong fundamentals. Overall, we're confident in our ability to continue to deliver superior returns for our investors. Stop picks? Yeah, stock picks. I'll go first. My first pick is Tasmea Limited. It's a founder-led provider of specialized maintenance services to the mining, resources, and industrial sectors. It's far from being a mere acquisitive roll-up in our view. The company's achieving organic growth north of 20% at the moment. Its differentiation really lies in a strategy of identifying, incentivizing dynamic young entrepreneurs that are hungry, giving them equity to drive strong growth in their businesses and allow them to scale up. We think the stock's very catalyst-rich. It's got, in our view, prospects of earnings upgrades, further accretive M&A activity post the recent $30 million equity raise, which puts them in a great position. We think they're well placed at the moment for index inclusion within the ASX 300 in March 2026, which you'll probably hear a lot of people talk about, the importance of index inclusions these days. My second pick is Zip Co. It's the leading buy now, pay later provider in Australia and the United States. Cynthia is doing a great job turning that business around, and we believe it was one of the standout results of the reporting season. The FY26 guidance points to accelerating growth in the key U.S. market. The stock remains under-owned by institutional investors here domestically, and we think there's significant upside in terms of earnings growth and also valuation re-rate catalysts, including potential NASDAQ listing next year. Obviously, Peer Planner is looking to list very shortly, and it's going to list above the top end of the guided range and is about eight times oversubscribed from what I've been reading this morning. Those are my two. I'll pass it over to Tobias for his two stock picks. Thanks, Sean. You know, Sean mentioned this earlier, the first stock pick. I wanted to talk about this. I think we've spoken about this in the past a few times, is 2RS Limited, which is the Singaporean telco. The reason I wanted to mention this today is around three or four weeks ago, they entered into a transformational acquisition of M1 Telecommunication, which is the third largest player in Singapore. 2RS is the fourth largest player. That's going to consolidate the market over there back to a three-player market. We believe it's a step change in the growth trajectory of this business, and it's on the back of flawless execution by the founder, David Thiel, and the CEO, Richard Tan. We believe the acquisition itself, while it's going to yield a lot of synergy benefits, what the market perhaps is missing is the longer-term market share opportunity for 2RS and the platform that has now been created to not only execute on the opportunity within Singapore, but potentially outside of Singapore as well. 2RS continues to be a core and large holding in our funds. The other stock which I wanted to touch on today is a company called Energy One. We are a substantial shareholder in Energy One, and we've only started buying it about 12 months ago. The business provides software, trading and compliance software for energy, electricity trading in Australia and in Europe, and is a beneficiary of the amount of renewable energy product contracts or assets coming online. Effectively, if you are a renewable project, you need to sell electricity into the grid, and their software facilitates that as well. They do that both in Australia and in Europe. They put the market about, and guide us to the market, to about 15% top line growth. Plus, they've had a really good start to 2026, and they're actually a very profitable software business. We quite like the management and the board as well. While we've only been recent in the story, we've done quite a few industry meetings with customers and advisors and are very positive on the stock. We think over time the catalyst for the stock would be continuing to beat earnings expectations and revenue expectations, and it's a high-quality software business. Before I finish up, I just wanted to also say that we've had a pleasing and positive start to the first two months of the financial year 2026, and particularly WAM Active, which on our estimates is up 18.1% over those two months. We're really looking forward to obviously working hard to deliver continued performance for our shareholders. I would like to now hand it over to Emma Coleridge, who will go through any questions. Thank you so much, Tobias and Sean. We've received quite a few questions from our shareholders. We'll start with Mads' question. What is your highest conviction investment across all the funds? For me, in the next 12 months would be 2RS Limited, M1 Telecommunication, which is the Singaporean telecommunication company. That would be one, that would be my one. Yeah, I'm going to run with one that I chose too, Tasmea. I think this business looks incredibly well placed. You know, as we spoke about the tailwinds that it's been across the various commodity markets, you know, positions them really well. Management owned 50% of the stock. They're very heavily incentivized. You know, we're all running in the same direction. Balance sheet's in excellent, excellent shape. We think they'll do some accretive M&A near term. As I said before, you know, stock's under-owned institutionally, and we'll be in the, you know, we think in the ASX 300 in March. Yeah, we really like the look of that one. Great. Thanks so much, both. The next question is from Mauro. He says, with markets at all-time highs and unsustainable multiples, how is the portfolio being positioned and risk protection downside risk? Yeah, from our perspective, I think there are two elements. The cash level. We've had a good reporting season and took the opportunity to increase our cash level by taking profit in some of the winners. Our cash is pretty high. I think the other point is, you know, the market has had a very good run. However, the small-cap companies have underperformed quite a bit over the last four and a half years. From our perspective, the valuation for many of these businesses, I mean, we've seen things trading on 10, 11 times price-to-earnings ratios that have very good growth prospects. We think the valuation in the small-cap space is a lot more reasonable, and we're seeing a lot of opportunities in that space. Great. With the next one, we've had a question from Michael, Lucio, Errol, and a few others ask about franking. When will we have 100% franking in WAM Capital and WAM Research? Thanks for the question. I'll try my best to provide some context. I'm not on a board, but the franking and the dividend policy is a board decision. For those of you on the call, also WAM Capital Limited and WAM Research Limited, they're currently paying partially franked dividends, about 50%. In the annual report, I think there were comments around that for 2026, if we are able to sort of maintain the same dividend as last year, we'll continue to be partially franked. The franking credit balance is quite important in determining, I guess, and having sufficient certainty on the outlook is quite important in determining the franking percentage. The funds have had really good performance and good progress on rebuilding the franking credits. To lift it to 100%, I think the board needs to have more confidence on the outlook. The last thing they would want to do is to increase it to 100% and then have to decrease it because we haven't had enough franking balance. For some of our new investors, just as a reminder, to pay fully franked dividends, we need to effectively sell shares in companies we made money in and effectively pay the tax and therefore be able to pass that franking credit back to our shareholders. It's a little bit different to the profit reserve, which is for both unrealized and realized gains. Currently, WAM Capital Limited and WAM Research Limited are partially franked. The LICs have consistently paid a very high level of dividends, even during the COVID periods. They benefited the shareholders then, but also it sort of ate into the franking balance. Great. Thanks so much, Tobias. This next one is from Allison Malkin. She says, why has the dividend not increased since 2018? Will WAM Microcap Limited increase its dividend given the profits reserve of $0.272 at the end of August? Thanks for the question. Again, it's a question for the board. To provide some context, we think the four LICs right now are paying pretty, pretty good yield, like in terms of fully grossed-up dividend yields. It's about 11%, 9%, and 10% across the four LICs. We didn't want to further erode the capital return. Obviously, the more we pay out the dividends, the capital return declines. We're very happy with how the investment portfolio performance over the last 12 months. To effectively maintain the current dividend, we need to deliver pre-fees about 15% return every year. That's going to be the key for us to be able to maintain the current levels of dividend. We're working very hard to achieve the best performance we can as shareholders of the LICs and in the LICs ourselves. From the board's perspective, I guess maintaining the dividend levels is a prudent approach in the current market. I don't think, I think it's probably highly unlikely the WAM Microcap dividend will increase at this stage. Great. Thanks so much. We've had a number of stock pick questions come through. Could you please give us your buy, hold, sell calls? We'll start with the first one, XRF Scientific, which is XRF in ticker. Yeah, I'd say XRF Scientific's a hold at this stage. The key thing we're looking for there is basically a return to improved top line growth. Clearly, the cyclical dynamics are very favorable. One of our largest positions is ALS Limited, which is obviously benefiting from a significant uplift in capital raising activity across the commodities complex. We do like the space. There are strong tailwinds, but at this stage, we just want to get more conviction and confidence that we can see that top line generate stronger growth. That's what ultimately will drive the valuation re-rating in that one. Great. What about FleetPartners Group? FleetPartners Group is not one we are in at the moment. I would say it's probably a hold at this stage. The one we do like in that space actually is COG Financial. Paul, Tony Dwyer from PSI Insurance has actually gone across there and made a pretty substantial personal investment in the business. One of their key verticals is obviously within that fleet management type space. At this point, we think that one has a much stronger runway in terms of its ability to undertake M&A activity to grow the business, but also expand organically across the panels. It trades on a 13 times P/E. We think they can grow the business organically 15% to 20% a year over the next few years and then layer in some acquisitions. COG is the one that we're looking to play in that space. Great. Next one is Qualitas Real Estate Income Fund. We don't have a holding in QRI, but we do have a holding in Qualitas, QAL, the fund manager. The reason we have an investment in QAL is due to they're the largest and I think the most conservative manager out there in private credit. Obviously, there's a lot of money flowing into private credit. A lot of the larger institutional or pension funds around the world that's looking to invest in Australia, they need to invest in effectively, you know, the private credit fund manager that has a lot of scale. They've been able to deliver 20% growth. We think, you know, with the seismic shift in private credit and the opportunities they're seeing coming down the pipeline and the mandates they have in the background, it's quite an attractive growing fund manager that's in a space that's very attractive. The founder owns a significant amount of equity in the business as well and has been running it very, very conservatively. Yeah, the feedback we receive across the industry is very positive in terms of Qualitas's risk management framework, which is obviously critical in running a real estate credit fund. We think they're well placed, and QRI does look like an attractive vehicle to us. What about Judo Bank? Yeah, Judo's a buy for us. The stock's trading at a discount to book value. There's been a few concerns more recently around competition in the market and is that creating elevated runoff in their book and pressure on front book margins. We think it's being overstated. They've shown very strong gross lending momentum throughout June and July. Front book margins are remaining strong. They're only 4% market share at the moment, so there's still ample runway for growth for these guys. They've issued guidance for over 50% profit growth in FY2026. We're really only just starting to see the operating leverage come through this business. We think if they can achieve that at scale metrics in that FY2027, FY2028 type timeline, we think this stock doubles from here. Yeah, we like that one. Let’s see your thoughts on MA Financial. Yeah, MA Financial's a hold for us at the moment, purely just on, you know, valuation grounds. It's now trading on sort of 23 times earnings. Look, we think there probably is risk of further earnings upgrades there, so it can probably continue going. It's a price cyclical business, you know, in the sense that, you know, it's obviously going to benefit from, you know, improved capital markets activity. They've done a great job in terms of the MA Money product. We've got exposure, I suppose, to that boom in mortgage demand that we expect to see through AFG. They've built a strong private credit business. If it wasn't for the valuation, you know, I'd be more positive. We like them and they're a good management team. Great. Forty Medical, is it a buy, hold, or sell? It's gone up a lot. I'd probably say it's a hold leaning towards a sell hedge, just purely because I feel like there's a lot of retail speculation built into this one. It's traversing through to commercialization, which is generally the more difficult part with these types of businesses. Atria Health, stock code AYA, is one that we actually really like. It's in a similar space. It's effectively got a software, AI-based software product that's being used effectively within CT scans to identify plaque, being the most recent approval they've just received about three or four weeks ago. There's also an approval upcoming in Q1 2026 around effectively flow of blood through the heart. They've just raised $75 million. They're extremely well capitalized now. We think they've got a strong pipeline of hospitals that they'll be able to sign up over the coming months. We think that's going to drive a further re-rating of that share price. Only $250 million market cap, whereas 40X, I think, hit almost $1 billion yesterday. We think this one's got a stronger TAM and stronger product. Yeah, AYA is what we're liking in that space. Last one, full buy, wholesale, Southern Cross Gold. Southern Cross Golds is probably a buy for us. I mean, the deposit that they recently came out with obviously has the potential to be massive, I suppose. It feels like you've still got good catalysts and good news flow there in the near term. Obviously, the gold price environment is very supportive. I think that one's still a buy here. Great. This next question is from Michael. He says, why did you sell Myer? You had high expectations for the company. Yeah, so we reduced our holding in Myer. We are still shareholders in Myer and then, you know, have quite a bit of Myer. As with the fund, we need to balance short-term and sort of medium-term catalysts. We obviously really like the management and the board at Myer, and we think they're going to deliver on some of the targets they've set out. I think from our perspective, it is from a portfolio standpoint, to weigh up some of the shorter-term opportunities in the market and effectively trying to maximize the performance for our shareholders and optimize performance for our shareholders. While we've reduced the position, we are still shareholders of Myer and still backing management. Great. This next question is from Ashok. He says, will the small and mid-caps outperform the ASX 100 during this lower interest rate cycle? Yeah, I mean, if historical precedent takes place, then yeah, we're very strongly believing that that will be the case. As we touched on earlier, we've seen that over the past probably two months, and we think with the prospect of further rate cuts, small caps are really well positioned. The interesting thing that came out this reporting season was some very, very savage moves among the highly rated, highly regarded large cap companies, you know, CSL, James Hardie, Woolworths. I mean, Woolworths is still on 35 times PE with 1% earnings growth. I'd much rather buy a small cap retailer like Amara or something that's on 10, 11 times PE with the prospect of double-digit type earnings growth. We think we are in the early stages of a rotation towards small caps, and we do believe they will outperform the ASX 100. Great. This one is from Krish. What is the target for the companies? Capital growth, distributions, or both? Is this for the companies we invest in? Yes, I believe so. Yes, look, for us, the key is catalysts. Just to provide a bit of background on that, in terms of catalysts, we're trying to figure out what are the things that could move the share price over the medium to the longer term and sort of identifying these catalysts. Typically, it could be a potential earnings accretive acquisition or an earnings upgrade. It's part of the process that we undertake to look for ideas and do the on-the-ground work. The catalyst needs to effectively change the trajectory of the share price that we think. For us, that's the key of how we've always invested, and that's sort of how we missed. Great. This one's from Joseph. Did WAM Capital subscribe to the 2RS Limited offer a few weeks ago? Yes. We took every share we could get. Great. This one's from Hung, and it's for Tobias, and on 2RS Limited. What are your thoughts about the M1 Telecommunication merger being blocked by the Singapore ACCC? Do you expect the company to enter nearby markets in the medium term, and are there any regulatory issues you foresee in the medium term? It's a really, really great question. Look, I think this is sort of our view, obviously. The regulatory environment and the setup is a bit different in Singapore in terms of, you know, from our perspective, I don't think it's a surprise to the regulators or the IMDA over there after merger. It's the third and fourth player getting together. It's probably the easiest to get through versus, you know, if it's number two and number four or number three and number two, it's going to be probably even harder. We think the regulatory risk, while there's always regulatory risk, is not very high. It's not something we're really focused on. I think over time, David and Richard have proven to be very optimistic and to have a very focused team that goes after opportunities. One of the things, for example, that I think perhaps the market overlooked over the last 12 months is the amount of value Simba has added to their plans while holding the price points the same. They are clearly working very hard in the background to be able to drive that customer value proposition, which drives market share gains. For us, it's going to be in better hands having David and Richard running the show in Singapore. I think if there are opportunities over time, I'm sure they'll be looking at it and they're way smarter than we are. Great. Joseph and Deep have asked about capital raising. Would any of the WAM LICs you manage consider a share purchase plan? I think that's a game for capital raisings. Great, thanks so much. Sorry, you cut out a little bit. Sorry, I was saying it will be a decision for the board. Great. Thanks so much, Tobias. This one is from George. Is Healthco oversold, and do you have a position in any of the HMC Capital investment vehicles? Yeah, so HMC was a stock that we did, that HMC Capital headco is a stock we actually did really well on. In particular, sort of coming out of, obviously, the 2022 sort of weakness. I think we made over 100% on the stock actually. As we see it today, the HMC headco itself obviously has a few challenges, and they're directly sort of attributed to various issues that are happening in the underlying satellites. We're not holding any positions in HMC or across the underlying satellites at the moment. The Healthco REIT HCW, which you specifically asked about, has just been deleted from the ASX 300 index. I suspect there's going to be some selling pressure on that one in the short term. It's at a 30%, I think it's over 30%, almost a 40% discount to NTA now. The last result only had minor reductions in the underlying NTA. I think you just need to get some clarity on Healthscope and the broader dynamics there around what kind of funding model that's going to go down before you can gain a higher level of confidence. Objectively cheap, but still quite a bit to work through, I think. Great. This question's from Sydney, has asked about resource stocks held in WAM Microcap. What is unique about Greatland Resources and Lavotto Resources? Yeah, so I guess the key thing I'd say is the turnover in WAM Active Limited, which is the fund that I manage, is extremely high. Greatland Gold was really a trade, you know, I suppose around, you know, it got absolutely smashed off the back of, you know, what was a very disappointing update for FY2026, particularly in the context of the company IPOing or doing an IPO in Australia only a couple of months before. We no longer, we just, we're planning to bounce straight. We no longer hold the stock. We think it's got to do some time and management have to really rebuild some credibility with the market. Lavotto, like, you know, I guess again to not a large position within the fund. Really that's being played, that trade was placed, sorry, around, I suppose expectations of potential news flow for gold into SEFs. Obviously they're restarting the Hillgrove and Timiny mine. There'll be 7% of global supply when that ramps up in the first quarter of next year. On a price NPV basis, it's about an eight-month payback. It's one of the cheapest mining stocks on the ASX. We're still holding that one and still positive on the outlook. Great. Thanks so much, Sean. This one is from Phil. What steps will WAM Microcap Limited take to rebuild its profits reserves? Noting the profits reserve for WAM Microcap Limited is $0.272 at the end of August. Thanks, Phil. Yeah, in terms of the steps, it's just for us to continue to invest in companies that go up or to generate positive portfolio performance for all the LICs. That's the key driver of increasing the profit reserves. I think I mentioned this earlier. We need to hold the dividend, what we're at the levels of dividend. We need to probably deliver around pre-fees 15% returns, say for WAM Microcap. That's sort of some of the rough numbers around what we need to do to deliver the performance to drive the profit reserves. Great. This one is again from Ashok. He says, how has WAM Microcap been performing this financial year, and what is driving it? Yeah, WAM Microcap Limited has had a positive start to this financial year. Sean's talked about this a bit earlier in terms of over the last four years, due to the outperformance of, I guess, some of the larger companies, there is a lack of interest in the microcap space where we're due to liquidity and the fact that they're not in any indices, you know, doesn't benefit from the capital flow that comes from passive money or the super funds, et cetera. With the recent rebound, early days in small cap companies, we believe if this continues, we're going to see more opportunities and more microcap companies outperform. The way the microcap companies have outperformed has historically concentrated on a few large positions that's done really well over a long period of time. One of the advantages that we have across the LICs, I think it's quite unique to us, is the fact that it's the same investment team that manage, you know, the WAM Microcap Limited fund as well as the WAM Capital Limited fund. Often, a lot of our best ideas within WAM Capital Limited often come from the WAM Microcap Limited fund itself. We are pretty positive on the microcap space given the, I guess, early days we've seen the turn in the performance of some of the microcap companies. Yeah, the only other point I'd add, in terms of the relative performance to the Small Ordinaries Index over the last month or so, the Small Resources Index was up 15% in August. That's a massive headwind in order for us to overcome as pure industrial stock pickers. We obviously own no gold and no commodity stocks within the microcap funds. That's just the other end point to note: the construction of the index is very gold heavy, and we don't have exposure to that area. That's a good point. Great. This next question is from Eric. Are there any significant detractors in the WAM Microcap portfolio and what is the plan for those? Yep, plenty of detractors. Reporting season. I think also the other thing is, in a positive market, a lot of it, I guess, it's opportunity cost or investing in businesses that, you know, the share price that doesn't go up and doesn't go up with the market. In terms of mistakes during the reporting season, we had a position in IPH, Patent Attorneys Company. They effectively downgraded. As a result, the share price fell, and then we sold out. Another company that downgraded, but we continue to like, is a company called Event Hospitality. They run the cinemas and they have a fast-growing hotel business. They have a lot of assets. For Event Hospitality, we were able to take profit into the result, so our position size was reduced. You know, the number. The share price had gone up about 40% over May to, you know, the end of July. We had taken, you know, we'd almost halved the position on the way in. As Tobias mentioned, I mean, we're still positive on it. There's very strong asset backing there. We've actually been buying back a few shares recently. I think that's a testament to the active side of our funds that we can make these decisions. Great. Thanks so much, both. This one is from Mark. What is your view on Generation Development Group following the Evidentia acquisition? Yeah, we really like GDG. We've been there for six years. I think the last few years, you know, the share price has done extremely well. The management team there, Grant Hackett, Rob Coombs, Terrence, they've done an amazing job effectively growing the business and obviously making smart acquisitions. Evidentia, you know, we think a lot of these asset consultants, they effectively are the gatekeepers for capital in Australia. Organically, they've seen very strong flows from both the bond products and also the Evidentia flows. It's a growth company and we think they're very well placed for the next five years. Yeah, we think there's some good catalysts coming there near term in terms of the momentum they've got on flow side of things. The pushback on Evidentia has been, I suppose, that some of the flows have sort of pushed to the right, but management are adamant that ultimately they're maintaining what they've guided to this year from a profitability standpoint. In classic sort of Grant Hackett, Terrence fashion, the CEO and CFO, you always leave a bit up your sleeve and a few hedges. We think they've got plenty of levers they can pull to continue to grow that business very strongly. One of the interesting points we picked up with them when we caught up with them over the reporting season was the opportunity in investment bonds, directly with super funds. That's a new space. Clearly, DIV 296 is potentially a driver of that. There could be some very significant flows come there. Watch this space, I guess. Okay, thanks so much. The next one is from George. Is QOR or QOR the next Live360? Great question. Look, we're very bullish on both, to be honest. Yeah, we were early in 360. We've owned that stock from $4. It's been probably one of the best performers within the WAM Capital Fund over the past five years. QOR is now held across both, again, to Tobias's point earlier, where we, and within WAM Microcap, we can have an early look at things, get really across those. We're buying that stock at $0.30, $0.25, $0.30. Now we've got it in WAM Capital and buying it. We think it's passed through the free cash flow inflection point this year. It's growing its ARR very strongly. There's still a long runway for growth for the business to go. There are structural tailwinds in terms of the funding environment improving in the U.S. We do think they're well positioned to, I guess, undertake bolt-on M&A activity. The September quarter is typically the big quarter in terms of cash generation. We think there's a good catalyst coming there near term as well. That is one we like. Going to the point of index inclusions, it has recently gone into the ASX 300 as of the announcement on Friday. Great. Thanks so much. The next one is from Soham. How do you factor Australia's declining productivity into your investment outlook? Oh, it's a great question. I think, yeah, feel free to add, but I think a lot of the companies we invest in, we focus on pricing power. Companies where, you know, the product is very strong, the customer proposition is very strong, there's product-market fit. When these businesses with pricing power, as they grow, we feel like any changes in perhaps overall productivity could be somewhat mitigated by the pricing power of these businesses to ensure the margins are stable. The other small caps companies, I think those that's really embracing AI and particularly the tech companies that's been very on the front foot should actually see an increase in productivity for the, like, that's the feedback we've had from many businesses like say Temple & Webster as an example. That should actually lead to a change in productivity for us. The small cap space is so diversified, it's really different industries and companies that have different, you know, productivity challenges. I think it's more a function of larger businesses where there tends to be quite a lot more bureaucracy and whatnot in terms of how to manage cost bases. It's probably less of a factor, particularly across the more nimble, high growth businesses where everyone's running in the same direction. Great. Thanks so much. This next question is from Claire from IIR, the research house. She has asked, where is Oscar? Great question. Thank you for the question. Recently, Oscar Oberg has been on leave, but he has been working remotely. I think I've spoken to him every single day, or Sean and I have, for the last month. More than my wife. Yeah, which is a running joke internally, but he'll be physically back in the office with the team at the beginning of October. Obviously, we sort of chat all the time. In the small mid-cap team, obviously Oscar Oberg's joined. We've been working with Oscar since 2016. I think Sean joined in 2019, Sam in 2018, and we have Cooper and Chris, who's been with us, particularly Cooper, since 2017. We have a pretty experienced team and a pretty good platform to continue to run the portfolio here. Oscar, you know, he's never had more than a week off, I don't think, in 10 years. I'm actually looking forward to seeing him come back refreshed, reinvigorated. We think he'll be on fire from day one. Great, thanks so much. He's already started to book in his meetings effectively. Yeah, he's got a heavy travel schedule coming. Work related. Thanks so much. This next question is from David. What expectations for IPOs do you have in the coming year? Quantity, size, and sectors to watch out for? Yeah, I mean, I'd say as a general standpoint, ECM pipelines are starting to refill for IPOs. I think at this point, they're generally going to be, I'd say, more towards the $300 to $500 million, you know, type market cap range. We're seeing a pretty diverse range of companies, you know, anything from, you know, the tech space, general industrials. There's a few things in healthcare poking around as well. I think the larger ones that are probably on the horizon are things like SD Healthcare, which was a very good investment for us and taken private a few years ago. Given how well the aged care space has performed, there's obviously potential for that one to come back. I'd say just as a general rule, we read a lot about the assets that are sitting within private equity and the fact that a lot of these assets are, I guess, reaching the end of their fund lives and they're going to have to try and find an exit somehow. It'll be fascinating to see the next couple of years, you know, what comes out of some of these private markets and whether the public market will actually have appetite for them or not, because there's a lot of pass the parcel happening in private markets at the moment. Great. Thanks so much. I think we'll have to do another round of buy, hold, sell. The first one is EBT. I do know you touched on it earlier, but maybe just a quick note on that one. Buy for us. Great. Objective Corporation. It's a hold for us. We do like the business. They have pretty good growth. I think it's just more in the fund, we have some of the other tech businesses with higher growth that we've invested in more heavily. Yeah, Tony's done an amazing job, founded that business. I don't know if he's ever sold a share. He's built a $2 billion company. For me on that one, it's getting more conviction on that ARR outlook, particularly from an organic growth perspective, which has tapered off a little bit the last few years. We're obviously holders of Technology One, too, who they do bump up against in certain aspects. That business has done a phenomenal job and we remain supporters there, too. Great. Coast Entertainment Holdings. Probably a hold. They have a very good asset, and it's a function of when they could, I guess, extract the intrinsic value of the asset. Yeah, it's probably just the timeline to unlock the value of the land. Obviously, there's been some press more recently around a large-scale hotel being built there, because at the moment, you're just very much beholden to the ebbs and flows of DreamWorld traffic. It's probably a hold for now with the view that getting more certainty around the catalyst to unlock the value of the land. Your thoughts on Beta Entertainment? Yeah, so, you know, Beta's a buy for us. Obviously, there's a lot of to and fro happening at the moment in terms of the PointsBet acquisition. That could play out in various ways. They could ultimately be successful in gaining control of PointsBet. There could be a scenario where Mixi engages with them and then they essentially license the tech out into Japan, the sports betting software platform. Or there's a scenario where BlueBet itself rolls into a larger entity with PointsBet and Mixi. We're also not precluding other potential scenarios out there. Obviously, there's been some press around Ladbrokes and what are they going to do? There's been some press out there around DAZN and Sports. Now that that's changed, Kayo's changed ownership towards DAZN, and what do they want to enter the sports bet market? In short, the balance sheet's in great shape. We think they've got plenty of optionality and we think irrespective of anything happening right now, the core business is on about four times EBITDA. They're about to get, if they wanted to proceed with PointsBet and they just got their cash back, like an EV becomes even cheaper. In the various scenarios we look at, which are multiple on that one, we think it looks very well positioned to make money from here. Next is Bisalloy Steel. Bisalloy Steel isn't one I've actually looked at. No, thanks for the tip. We'll have a look at it after the break. We can come back directly after we've had a look at it. Breville Group. Yeah, Breville, we like medium to the long term. Obviously, they've been one of the companies that was impacted by tariffs and had to make, and they were actually very proactive, having made decisions to effectively change the manufacturing base. They sell the coffee machines to Australia, the U.S., Europe, and now in Asia. We really like the management. They've done an incredible job growing the business, and it's really a market share story. In the short term, there's going to be a little bit of uncertainty around the landed margins and exactly how all the tariff impacts will play out. From our perspective, from 2027 onwards, they are effectively selling more coffee machines and products, gaining share in all the geographic areas they're in. Definitely one to hold for the long term. A2 Milk. A2 Milk is a buy. We had a good position, decent position into the results. The management team has done an excellent job executing at the most recent results. They also effectively ticked the box that a lot of investors were worried about, which is the supply and manufacturing of the product. David Bertoluzzi, the CEO, did a back-to-back deal to sell the underperforming asset and actually buy another asset at the same time. I think it's underappreciated, his ability to get that across the line and effectively solve the issue that people have had. In China, the CEO, Li Xiao, has done an amazing job growing share and effectively winning share from the incumbents, other large infant formula brands, as well as the local brands, and increasing share geographically. You know, our view on A2 is that over time they'll go from a one-brand business to effectively multi-products under the one brand, multi-regions. It's not just China. They've gone into Saudi Arabia. They've gone into Vietnam, obviously in the U.S., et cetera as well. We think it has a lot of IP, the A2 IP. We're strong believers in the business and the ability to continue to win market share. Great. Next one is SmartPay. SmartPay is currently under takeover offer, so, you know, fingers crossed. Yeah, we're holding on the basis that we think the deal closes. Great. Your views on EML payments? Yep, so that's one which we have a substantial holding in. The reason we are there, and this business has had quite a journey, a bit of a rollercoaster ride. The reason we're there in that size is because of the new Executive Chairman, Anthony Hines. He's taken over the reins effectively six to eight months ago. Amazing entrepreneur who's proven himself before when he founded a business called eNet and sold it for $4 billion, which is also in the payment space. He's now come into EML. He's bought, I think, $3.5 million of shares on the market. The board has set the targets of, I think, for about, it's about close to $20 million worth of shares for him if he can get the share price to $1.40, $1.50 within 18 months' time. Underneath the hood, he's making a lot of positive changes to the business and reinvigorating growth and really driving that efficiency really high. They actually upgraded in August. They're in a clearly green shoot. I think they've set our targets of $95 million for EBITDA in 2028. That'll come very quickly in a blink of an eye. We're really backing management and Anthony and Peter there to execute. Great. Thanks so much. This next question is from Mehdi. What happened with Austin Engineering and what was the logic behind the investment originally? Austin was originally inherited when we took over the Euroz portfolio. That's when we originally inherited that position. Post our due diligence, our conversations with management, we knew the CEO, David Singleton, from his Austal days and had a good relationship there. We understood the vision and what he was trying to build and did really well, obviously, for us for a period of time. In hindsight, we probably should have sold more stock than we did earlier. The change in management was, I suppose, a catalyst for us to reassess our holding in the business. We obviously saw some negative developments around some of their key growth pillars in terms of the margin structure and whatnot with Batam. We've exited the position in WAM Capital and we're holding a small weight in WAM Microcap. Great. Thanks so much, Sean. Phil has asked, would the board consider slightly cutting the dividends to retain more earnings and profits reserve? In addition, Andrew, one of the shareholders, joined late and has asked, will WAM Microcap return to 100% franking? If you can please touch on that again too. Thank you. Yep. Again, it's a question for the board, but in terms of the context on the dividend side, our goal is to continue to drive positive portfolio performance. That's going to add to the profit reserve and obviously the ability to pay out dividends. That's going to be, obviously, the thing we're working really hard on. We're all investors in the WAM Microcap ourselves. That's the first thing, second and third thing we think about every single day. On the franking side, I touched on this earlier. I think until the board has comfort around the certainty on the franking balance going forward and the ability to maintain the 100% franked dividend, it's most likely going to continue to be partially franked at around 60%. There's always going to be mismatches in timing. With the franking balance, it's realized capital gains, and versus the profit reserve is both realized and unrealized as well. Obviously, driving positive performance is number one. Hopefully that eventually leads to the fully franking of the dividend. The point I touched on earlier was also during the COVID period, we continued to pay a very high dividend, a franked dividend yield, which benefited the shareholders at the time. However, it did deplete the franking balance. Great. Thanks so much. This next one is again from Ashok. What is your view on Setai going forwards? Setai is not a stock we have in the fund right now. They are going through their challenges in terms of the changes to the tariff landscape. They're working through that. It's one we've had a small position in the past, but like all small cap companies, we look at it, we assess it when the results come out, we go through it, and if the opportunity is right, we can get back into it. Great. The next one is from Glenn. Do you have an opinion on the Brickworks Solpats merger? Yeah, we're very positive on the merger. We think it unlocks, obviously, a good level of synergy and strategic benefit for both sides of effectively unwinding the previous structure. We participated in the initial raise, we participated again in the second tranche raise that they did. From here, there's a significant wave of passive buying that still needs to occur as a result of changes in free float and index upweights. We remain very positive on that one. Clearly to us, it's been one of the bigger holdings at which we've had in good size for a long time now. We rate Todd and management very highly. We think they're very good stewards of capital. We're definitely positive on that one and own that one in WAM Capital and Active. Great, thanks so much. This next one is from George. Do you invest in companies listed on the New Zealand Stock Exchange? Yes, we do. We've got a number of holdings that are on the New Zealand Stock Exchange, Somerset Group, which is a retirement village operator, eRoad, a small technology company is also listed there, SmartPay obviously, A2. We've invested recently in a company, Black Pearl Group. It looks like a very exciting technology player in New Zealand that's looking to move their primary listing here, the ASX. That probably goes to the point. We struggle with the liquidity profile of the New Zealand Stock Exchange in terms of the stocks that we like to invest in. It just doesn't have the same level of passive tailwind, if you like, that the ASX does. If we're investing in New Zealand companies, one of my biggest learnings probably the past 12 months is you really want the listing on either side to be an ASX primary listing because it just seems to be the invested universe is very different in the way people approach the companies. I'd say New Zealand stocks generally, like they've probably lagged expectations. The recovery has been pushed out further than what some are calling. This next question is from Ashok. Do you hold Australian broadband in your portfolio? Aussie Broadband is actually one I bought in the active portfolio recently, post-result, which was obviously a very good update, a beat to FY2025 expectations, and guidance for FY2026 also ahead of the market. We think going forward, that's the challenge of broadband space more generally. We've got shares in Superloop as well. This isn't a winner takes all type industry. It's really about these challenger brands taking share from the slow dinosaurs like Telstra and whatnot, with better performing products, better service, et cetera. We've obviously got a significant churn event coming up in a few months' time. We think the challenger broadband players look well positioned here. Great, thanks so much. This next question is from Philip. Do you like PEXA Group given its pricing power makes it almost a monopoly? We used to hold PEXA and actually heard good things about it recently in terms of the new management. It is definitely one to do the work on. It is making headway in the UK as well. I think in Australia, the environment's improved as well. I'd say that the business model is very attractive to us and we'll be doing work on it. Great, thanks so much. This next one is again from Claire from IIR and John who have both asked what was the catalyst thesis for IPH Limited's. Yep, it was twofold. IPH have effectively patent attorneys. They have operations in Australia, Asia, and also in Canada. These were through acquisitions. Over the last few years, they've had effectively either one or more than one part of the three weren't working or it was not kicking goals and had market share losses. Heading into the results, we were more positive on the organic and the market share positioning for the three positions, and we thought that could positively surprise the market, effectively having all three regions producing positive growth, which would be the first time in quite a long time. When we look at the margin profiles of the three different regions, it's also quite different. Asia is quite high, and then you have Australia and you have Canada. Our view was, you know, self-help opportunities within the business to obviously get the margins up for the other two regions. That would again be another catalyst because it would lead to earnings upgrades in the outer years. Unfortunately, we didn't see enough or the market didn't see enough at the August result for them to believe in the thesis. The catalyst didn't play out. Great, thanks. There's obviously a CFO change there, Brendan York too, who we'd had a good experience on in the past with the Nero Group. We always pay very close attention to changes in management and backing good management teams. There's a bit of a view, I suppose, that he would be able to get in there and make some changes to the cost base. It probably just didn't eventuate to the degree that we thought it would. Great, thanks so much. Tobias, Energy One was your stock pick, but Ian asks, given the share price of Energy One and how it has gone up, is there still substantial upside given the current price? Yeah, I mean, over the long term, 100%. I think the top line growth really attracts us and the ability for them to continue to participate in what's happening in the renewable space. The market in Europe is growing at 30%+, and that's the market as a lot of the electricity markets are opening up. You know, you need effectively software to be able to trade across regions, across countries. Those changes really happened post the Russian-Ukraine conflict. I think there are secular structural growth trends happening in the background that's really helping a business like Energy One, and that's really underpinning the top line growth in Australia. Obviously, we've seen with a lot of the charts, and Genus Plus is another company which is benefiting from this, the amount of solar projects, wind projects coming online. Each single project needs to be connected to the grid. In the case of Energy One, the software that needs to be used by the different projects is effectively what they produce, and they're 50% of the electricity traded in Australia. They really benefit from the market growth here as well. Australia historically has been growing at about 13%, and Europe has been growing at a higher rate. We think it's going to go through a period of higher top line growth. They've talked through to operating leverage, so we should see the earnings come through as well. In the August results, they talked about potentially acquiring, but only acquiring businesses if it's earnings accretive from day one, and that's quite important. I think the management and the board are very conservative, so they have a very good track record there. We think if they open up another region as an example, that could increase the total addressable market and the business could be quite large in a few years' time. Yeah, $500 million market cap, we think that really is the sweet spot for these high growth software tech businesses. We wouldn't classify this business as well owned or well discovered at all from an institutional investment point of view, so there's still plenty of potential buyers, we think. Great, thanks so much. This one is from Andy. What is the team's thoughts on GA education following the bad press and price reduction? Yeah, I mean, clearly it was, you know, the, I suppose, press was obviously very disheartening and disappointing to see. To be honest, we felt most badly for not only those affected, but also the CEO, Pedge, who's done an amazing job with that business operationally so far and all his staff. It was obviously really sad to see for them. I think operationally, the impacts are probably overblown, and there is a significant amount of this now reflecting the share price. We took action immediately and de-risked the size of the position so we could sort of await further clarity as it played out. It's no longer a significant holding within the WAM Microcap Fund. It hasn't been for a few months. From here, I actually think, assuming that the actions or, I suppose, the government's view around this is to really just install cameras and things like that, like GA have already got that done. GA already screen all their employees pre-being employed, et cetera. We don't think there's actually a lot the business needs to change operationally, and they've already been among the highest standard operators out there. Looking into FY2026, cost of living pressures and whatnot have clearly had an impact through FY2025. I think as we look forward, the stock is very cheap, and if you believe that interest rate cuts are going to flow through, consumers are going to have more money in their wallets. Some of the policies around childcare uptake are obviously positive for occupancy. We actually think it's starting to look quite interesting again now. The stock we're staying close to doing work on because you could see quite an aggressive rebound into 2026 if they can close that gap on occupancy and get occupancy improving again. Great, thanks so much, Sean. This next question is from both Ashok and Peter, who have asked, what are your thoughts on DroneShield? Did you hold it in the portfolio before it was added to the ASX 200 index? DroneShield, we've done some active trading around it. There was a sell down at one point by one of the U.S., I guess, peers or competitors of the business that were looking to potentially partner on some tech. It ultimately didn't go down that way. We took some, the stock sort of rallied, and then we sort of sold it out. We didn't own it into the ASX 200 inclusion. As an overarching point, I'd say clearly there's very strong tailwinds at the moment around defense globally. It's been flagged by NATO nations, pushing from 1% to 5% of GDP by 2035. This is what I'd call a hot sector in the market at the moment, and share prices are affecting quite a bit. The ways that we're sort of playing it, I suppose that theme at the moment is through Codan. That's done a phenomenal job for us. Their communications business, about 40% of that's leveraged to military spend, and they're only really starting to see the uptick in inquiry now. We think they're well positioned. We've got some shares in EOS in the active fund. Clearly some very significant developments there more recently with their high laser technology sale, and the sounds of the pipeline there remains extremely full into next year. The defense theme is a very, very strong one in the market at the moment, but valuations are reflecting that. As we saw about a month ago when Trump was trying to, I suppose, offer an olive branch between Russia and Ukraine, those stocks fell 10% to 15% in one day. Obviously rebounded since. You've got to be careful because they are baking in a lot of upside, these defense names. Great, thanks so much, guys. We have a few more stock pick related questions that have come through. Could you please give us again your buy/hold/sell calls for Dimerix Limited? That's the first company. DXB, it's not one I'm close to, sorry. Buy-hold-sell and not applicable. Probably inevitable. Happy to come back. We'll have to do some work on it. It's a biotech business. It's not typically our wheelhouse. Next one is Tyro Payments. Tyro Payments, I would say, so we have it in fund, I would say, to buy. I think they've had a, with the matrix, there's a change at the top with the CEO leaving, moving on. They are looking currently for someone to come in and run the business. They've had a very good start to 2026. It's a payment business. Obviously, we own SmartPay, which was obviously under takeover. We think there are a lot of, we think there are parties, I think payments is always a very interesting party for people to look at and for international businesses to get into Australia and having that payment network already there. I think the intrinsic value is there for Tyro and organically or from a business perspective, they're doing well. Tillx Pharmaceuticals. Tillx is probably a hold for us at the moment. Quite a few moving parts there at the moment in terms of regulatory factors. I'd also say too, clearly, Lucyx there, key product within the U.S. market. It does look as though competition is starting to increase there. I guess more broadly, the market penetration story has played out quite a bit now. It's probably a hold for us. We have owned it in the past, haven't owned it for a little while now. One that's still on our radar. Next is Electro Optic Systems. Yeah, I sort of touched on this one before, EOS. I mean, clearly the defense thematic at the moment is incredibly strong, significant tailwinds in terms of increases in government funding coming into the space. Stocks run hard, but I'm going to say it's a high-risk buy. It just feels like it's got the momentum at the moment. The pipeline's very strong. It feels as though it's got a couple of potential contract wins that could come through that could be further game changers for the business, I suppose. This one's at, I think, $1.8, $1.9 billion market cap now. DroneShield's for a bit over $4 billion. This one's got probably double the earnings from memory. Stocks run hard, but I'd say it's probably still a higher risk buy here. Sigma Healthcare. Yeah, Sigma's a buy, we think. It's one that we've added to sort of post-reporting. The momentum within the Chemist Warehouse business is clearly incredibly strong, double digit like the likes throughout July and August. Clearly, the business has very good momentum. We do think it's a beneficiary of rate cuts going forward. Obviously, with the growth in the GLP-1 drugs, a specific theme they flagged was as people come in, buy those GLP-1 drugs, they're buying other things in store too. It actually is driving quite a bit of incremental foot traffic. That should be a good tailwind for them into FY2026. It looks as though the offshore expansion strategy with Ireland and whatnot is starting to gain some, and potentially broader Europe, starting to gain some traction. The only thing we're cautious on there near term is obviously there's been some management changes flagged, which probably is not expected. The equity markets had to absorb a lot of stock from insiders and the stock price has hung in there incredibly well. I'd rather buy a Sigma on 50 times growing in the teens to low 20s than Woolworths on 35 times not growing. Next is SKS Technologies Group. That's probably a hold for us. In that space, we do have a few companies that are sort of similar. There's quite a few companies, obviously Tasmea Limited, which Sean talked about, Genus Plus, we have SRG, we have Service Stream, and our W over Quality that's sort of in the space recently. The overall space is pretty, we're pretty positive on the space. We think that's significant tailwinds still to come there. SKS is the least sort of diversified in the space. We've just got preference elsewhere. It's clearly got good tailwinds at the moment. Great. Helios. Yeah, our exposure there is in ACL, Australian Clinical Labs. A four-payer market, we think ACL is doing a lot better on the margins. Obviously, there's a few challenges in the healthcare space. We are gravitating towards the ones that's been able to effectively have more streamlined processes, more digitized processes that allow us for high margins and provide more margin of safety in terms of earnings. Our preference there would be ACL. Your thoughts on Nuix? Nuwix probably a hold. It's one we've had a look at. It's had a few hiccups in terms of managing market expectations as well in terms of the execution by management. The thematic is very positive. I think it's probably perhaps more on the execution side, but it's one that we go through actually in detail every result just to see where there's an opportunity. With a lot of the technology companies, we have to weigh up all the options that we have in the fund. It has to effectively be more attractive than some of the stuff we have in the fund to buy it. Not something we hold currently, but yeah, I would say it's a hold. Great, thanks so much both. We have Hadib who has asked for your views on the global small cap sector. They have underperformed for a while. That's probably a question we could come back to you from the WAM Global team. If you apply, I mean, the simplest thing, if you apply the same overlay that we do here domestically, like if you think the Fed's about to go through an easing cycle, then yeah, I mean, smaller companies should, you know, in theory, more economically sensitive, have underperformed relative to large in the U.S. as example too. The same principles should apply. Instead of the banks, obviously the Magnificent Seven, the large tech names dominate effectively U.S. equities. Yeah. Mandy has asked, why is WAM Capital delivering average performance? I think I'm hoping the question is around the share price. As an investment team, our job is to drive the performance of the fund itself. I think I ran this number earlier in terms of since 2022, obviously that was a challenging year. We've delivered, I think, on a one-year basis in our performance versus the market of about 12%. As at August, about 11% as at on a two-year basis and about 9% from a three-year basis. We've been able to consistently outperform the market over the last three years. I think perhaps the question was around the share price and the share price not keeping up with the market. We completely understand, it's disappointing for those that bought the share price at, I guess, at a much higher level. I think WAM Capital and particularly WAM Research were trading at a significant premium to the underlying NTA. I think WAM Capital was around 30%. I think WAM Research got close to 60%. Effectively, if you're buying shares, then you're buying a dollar of assets that's only worth a dollar for $1.30 or $1.60. That's been one of the reasons why the share price itself, the listed company, hasn't kept up with the market due to that premium reducing. However, we also pay out a very high growth stock dividend yield. When we think about total shareholder returns, it's not only just the capital growth, but also the amount of stuff that we pay out. If we, hypothetically speaking, didn't pay out any dividend, the share price, assuming the premium stays the same, should have reflected, I guess, the outperformance of the fund, the underlying fund itself. Great. John has asked about Gentrack Group. What are your thoughts and why have you invested in the company? Gentrack's gone from what we would have called among the largest small cap darlings to, I'd say at the very least, divisive, borderline hated. There's a lot of noise in the market at the moment around, you know, one small, you know, which they obviously came out and disclosed, Red Energy, one small, you know, contract that they didn't effectively do just because, you know, the terms weren't attractive. Going from here, I mean, you may have seen we've filed as substantial shareholders recently. We're very big supporters of management. You know, Gary's done an excellent job at the business so far. We think the key sort of catalysts near term there are, I guess, contract awards. We think it'll only take a couple and this share price could move quite material just because they haven't had any sort of news flow in that respect for a while. In the medium term, you know, our business growing 15% to 20%, you know, organically compound and, you know, we've got a lot of confidence around that. We think it's an opportunity to, you know, I suppose buy while there's blood on the streets and everyone hates it. You could see a pretty, pretty material re-rate if we're right, which hopefully we are. Just to add to Sean's point, I think a lot of the times now, and for probably some of the new shareholders, when we do increase subs and companies, the weight itself, the weight of the company in the portfolio is not that high. I think sometimes you see us, I think, you know, EML, for example, we're 10% of the company, but obviously the market cap is a lot smaller. The weighting of some of these businesses in the fund is not as large as what perhaps it looks to be. Great. Ian asked for your thoughts on Alliance Aviation. Yeah, I mean, Alliance, we've got a small holding in our micro-cap fund. The challenge there has been really just around, you know, I guess the prospects of deleveraging the balance sheet. It just has seemed, unfortunately, to keep sort of kicking out to the right. There's no question, it's like the business is fundamentally, you know, undervalued and cheap. We just want to get more confidence in that deleveraging profile. We felt like at this result, it probably did get kicked out, you know, about another 12 months. One that we're holding small weighting in, keep our eye on and wait for the time to launch properly into. Great, thanks so much. George asks if there would be any benefits in merging WAM Active Limited and WAM Research Limited into WAM Capital Limited. Yep, so WAM Capital, and I think there's obviously a question for the board, but just in terms of the difference, you know, WAM Capital has the research side of the portfolio and then also the trading side of the fund. That's, you know, when you put two and two together, you get WAM Capital. Otherwise, investors have the option to just purely invest in WAM Research, which is more the research side, or the active which trades a lot more. I think ultimately, it's obviously a board decision, but that does give shareholders an option depending on what suits their specific investment sort of needs. Providing that option, I think, is quite important. Great, thanks so much, Tobias. This next question is from Ashok. He asks, what's your view on Mayfield Group? Yeah, I mean, similar to the comments I made before about GA, the childcare industry has been tough over the past nine months, I suppose. Cost of living pressures have clearly weighed in terms of occupancy trends. Did have a look at it, really as a cross-check throughout reporting season. Momentum was clearly building in the business through the period. They've got the same challenge in the sense that occupancy is well down on last year. I think going forward, if we come back to the basic principles around interest rate cuts, more healthy consumer and some supportive policies in the childcare industry, that should see occupancy rebound, which is the key driver of profitability for these businesses. I'd say it's probably a hold at the moment, but they're looking more and more interesting, I think, these childcare names. Great, thanks so much. This next question is from George, and he asks, what went wrong with the Digico floats? Good question. I think the main thing that went wrong with the Digico float, aside from listing at a time when there was a bit of volatility in the market, was probably the structure of the deal and the size of the deal. It was made out as though it was kept incredibly tight, and you'd see this significant amount of index and, I suppose, institutional buying post-listing, which didn't really eventuate. From day one, the stock sort of never traded above the IPO price. There's a perception once that happens, it's, in inverted commas, a broken IPO, and it can take some time to recover. I think at the moment, shareholders are wanting to see further progress on the seed assets and whether obviously they can, you've got the HDF accreditation more recently. Now you want to see them start to fill some of that extra capacity within that data center. At this stage, it's probably a hold, I think. It's probably just got to do some time to operationally execute, show some more positive catalysts, and then people will be looking to revisit it. Great. The next question is from Tony. What are your thoughts on IDP Education? Yeah, we own some IDP Education, a stock that we've been close to for a long time now. We sold our shares out sort of a few years ago when it felt like, I guess, the policy dynamics within each of their key markets were becoming more restrictive. That's obviously what we have seen play out. There's been some more green shoots, like some green shoots there more recently, I suppose. The Australian government have come out and said they'll allow a 9% increase in student immigration into next year, obviously recognizing that it's the largest services export for our country. It's pretty important that they continue to support. I think there's some recognition of that now. UK, yeah, it does feel as though the policy settings are getting incrementally more supportive. The stock's just left the ASX 100, so it's now back in the small cap index. A lot of our peers in small caps will be dusting it back off and starting to do work again. They'd have a more fund experience of IDP and would have rode it on the up cycle when the shares went from like $4 or $5 to, I think it hit $35 at one point, and come all the way back down now. Management are doing a good job on the cost base. We're holding it. It's not a large weight at the moment, but we think any incremental positive news flow around policy dynamics in Canada, and probably to a lesser extent, any further positives in the UK, you could see this share price re-rate pretty dramatically. Management are talking to a flat cost base into FY2027. If you see a volume rebound with a flat cost base, we think there's actually pretty significant earnings upgrades that could come through. A little bit early. It's one that we've got a holding in and staying very close to. Great, thanks so much. This next question is from Keith. He asks, what are your thoughts on Magellan's improved position and new management structure? Yeah, it's quite interesting. It's still on a list of things we're doing work on. I think the thing that really piqued our interest is around Bimba. That's a quantum fund. I think that's doing really well, so really understanding how the strategy of that, you know, that part of the business over time. It's one that's on the to-do list. Great, thanks so much. Rick has asked, every month the WAM Microcap investment update specifically mentions $0.0161 of tax assets arising from the acquisition of investment companies. How can you realize these assets and realize these benefits? Oh, relief, sorry. Yeah, the capital loss is from historical acquisitions and can be offset against future acquisitions or future capital gains from future acquisitions. WAM Microcap Limited also recently realized around $0.022 per share of historical income tax losses and reduced it to the benefit of our shareholders. Thanks, Tobias. This next question is from Cole. You have touched on Southern Cross Gold earlier, but how would you compare it to Tasmea? Yeah, I mean, so fundamentally, you know, Southern Cross Gold is a gold company versus Tasmea Limited, which is essentially, you know, a maintenance services provider to, you know, the commodity and oil and gas industries. That's obviously the fundamental difference. Southern Cross Gold is going to get, yeah, you know, I guess, leverage purely to the gold price. Whereas Tasmea Limited, we think, you know, more diversified business, maintenance services operator. Yeah, and as I sort of touched on before, you know, balance sheet's in great shape. We think there's earnings that accredit acquisitions to come near term and, you know, it trades at probably a 20% discount to its listed peers with, you know, ASX 300 includes in March would be a, you know, I guess a key potential catalyst to close that valuation gap. Yeah, different industry, different risk profile, obviously. That's probably all I'd say there. Great, thanks so much. John has asked, what are your five worst duds for the year? Five worst duds. I'll say IPH. In terms of duds, we look at companies that we've sold out. A lot of the times it's things that we still like, we're sort of adding to it and perhaps hasn't been realized. I'm just trying to, off the top of my head, IPH, Close the Loop, that's been one that hasn't jammed. GA is obviously... Austin Engineering, that's unfortunately fail. I'm trying to think what else. Sometimes it's missing things that's gone up as well in an upward market. I'm trying to think what else. Yeah, these are four out of the five. I mean, I like Venn Hospitality, which obviously, but that's something, as we explained earlier, we quite like and we're sort of buying it out. Actively tried in the white, yeah, quite well around it. Great, thanks so much. We've had more stock pick questions come through. What are your thoughts on Pro Medicus? Positive. Prometicus would be a buy for us. You know, they're the only business on the, one of the only handful of businesses in the world where they're delivering 30% top line growth and I think 75% EBIT margins. They've done that for 10 years in a row. The product is well ahead of their competitors. They are currently, I think, around 11% to 12% market share in the U.S. Longer term, that share could be a lot larger. This is only in the radiology space. They've just gone into cardiology, and they've won their first contract in cardiology. That's another large total addressable market. They've just started to go into pathology as well. There's a lot of other ology opportunities, which is based on one platform. Many of their peers or the larger peers have multiple products based off multiple platforms, and hence, it's not as clean or as efficient as the way they've done it. Over time, we just think they'll continue to win share. They haven't lost a customer or client in 20 years. It's an amazing business. Yeah, it's a buy for us. We think the catalyst is for the contract awards. Great. Next one is Jumbo Interactive. I'd say Jumbo is probably a hold. The challenge there is sort of identifying a catalyst to rewrite the stock outside of, you know, the jackpot cycle, I suppose. They did recently sign, you know, a SaaS agreement with Queensland RSL, which is the key growth opportunity for the business, is growing the SaaS arm. They've sort of struggled to find an acquisition that, you know, makes sense there. The balance sheet's obviously in great shape. They've got opportunity, I guess, option A to deploy into a buyback revenue. For us, it's sort of just trying to find a larger catalyst outside of just trading the jackpot cycle. For that reason, it's probably a hold. Great, thanks so much. This one's from Georgina. How are you playing the AI investment trend in the small cap space? Yeah, I mean, like it's a point I touched on before, like in terms of getting direct exposure to the AI thematic, the ASX is quite frankly pretty limited. We think the highest quality play is Megaport. The CEO, Michael Reeds, came in there a couple of years ago and honestly has done what we think is an amazing job in terms of really completely restructuring the organization, refocusing the go-to-market, created a real drive around new products and essentially broadening their share of customer wallet. You're starting to see that now come through in terms of the operating metrics. They've decided the best course of action is to double down and obviously drive the product development and go-to-market side harder and really try and capitalize on this AI trend, which will suppress the earnings, like the operating leverage in the short term. What we think it does is sees revenue growth actually accelerate, particularly into FY2027, well above where consensus is estimating. At that point, they can demonstrate and show that the operating leverage can come through. We really like Megaport. It's one of our larger positions, and we think that's the best way to play it here domestically. Great, thanks so much. Jeremy has asked, have you ever considered cash converters? Yeah, I have looked at Cash Converters. I met them recently. It does look interesting, definitely. I think the franchisee roll-up strategy that they're undertaking is a proven model in terms of being able to arbitrage the model and internalize and create value by bringing them back into company hands. The exit of payday lending looks very smart to me. From an equity market point of view, people don't necessarily like the payday lending side of things. I think it does have a good run rate in terms of the roll-up strategy, and obviously expansion overseas into the UK. It's actually one that I do think looks quite interesting. I'm doing work on it at the moment. Great, thanks so much. You touched on this earlier. However, Linda has asked for your view on Superloop, please. Yep. Yeah, Superloop we have in the fund, in the WAM Microcap fund. The management's done a good job executing on the organic growth profile and also entering into partnerships with the likes of Origin, et cetera, et cetera, to grow their subscriber base. The opportunity longer term is obviously some of these younger, newer challengers taking share of the large three incumbents. I think Sean touched on this earlier. You know, there's a potential large churn event that's coming up over the next few months. If they can execute on winning a larger part of that, you know, the churn definitely, you know, it looks very attractive. Great, thanks so much. Ian has asked what your thoughts are on EDU Holdings. EDU? Yeah, sorry, I've got nothing I can add there. All good. Bill has asked, is Australian Clinical Labs a likely takeover target? Perhaps, but you would have seen ACL when this would have been maybe 12 months ago, had looked to effectively acquire Healius. We think there's a lot of strategic rationale with the merger of those two businesses. Effectively, that's perhaps a potential scenario if they revisited that story at some point in the future. Healthcare assets, there's always interest. We've had quite a few a few years ago get acquired, SDA Health, which we had 10% shareholding in, National Vets, and there were a few others. The healthcare asset space is always pretty attractive to private equity. The most talked about merger is ACL and Healius. We're just not 100% convinced on the ACCC clearance. Thanks so much. Joseph asks, do you own Lifestyle Communities? We don't own Lifestyle Communities, but we really do like the land lease space. We were one of the larger participants in the recent Jamlife IPO, where we rate, you know, founder-led business, management incredibly strong across the detail, beat their prospectus forecast by 8%. We think they're well placed to upgrade earnings in the future. We also own Aspen, APZ in that space, remain positive on that one, and we own Ingenia too. We like the thematic. The reasons we haven't owned LIC for a while are obviously the DMF fee and the question marks that that has. The Victorian property market, generally, post the tax changes sort of 18 months ago has been very, very challenging. There has been management change over and whatnot. We really like the space, like the thematic. Interestingly, I'd say the conversations we're having with management teams on Victoria, it has bottomed. There are green shoots. It probably is the time to start revisiting LIC. Great. Christopher has asked for your thoughts on IBE Group. Yep. IBE would probably be a hold for us. We haven't done a lot of work recently on it. I think the share price has done well, and they've continued to, you know, when we did the work last time, you know, have very good management running the business. It's probably one of the companies we'll put on to our, you know, it's currently, I think, around $300 million to $400 million market cap. It fits well in the WAM Microcap strategy, and it'll be one that we'll be looking at. Great. The next question is from Roger. He asked for your view on Cymal. Yeah, so Cymal, we like management. I think one of the challenges with a lot of the services companies is there's quite a few around. The Cymal management we've met in the past, they've done a very good job growing their business. We obviously like the story backing management there. In terms of more near term, some of the larger mining services companies, I think with more near term catalysts are the ones we've effectively gravitated towards. Now, both of you, what do you think of Alphas, and would you hold it at some stage? Again, I think that's a contractor services business. Probably no real short-term views right now, but we've had quite a few of the contractors in the fund already. I think the key for many of them is just how do they take the next leg up into a market cap where we can get index inclusion as an example, as a catalyst to attract more capital into the business. Great, thanks so much. Ashok asks, is Lovisa a buy, hold, or a sell? Yeah, Lovisa's held in WAM Capital. We still think it's a buy. Obviously, there was a lot of concern around, you know, Victor, the previous CEO, sort of exiting the business and what that would mean going forward. If we take a step back, we think they've got probably the best management team in the country in retail. Mark McGuinness has been brought in as Chairman, and I can tell you he's not getting paid $1 million as Chairman to sit on your hands and do nothing. We really rate Mark from his previous endeavors at Premier. Obviously, they've brought John Cheston in as well, who was previous CEO of Smiggle. We think they're really high-caliber retail executives. You can see through the second half that the store rollout is reaccelerating. It's really pleasing to see the like-for-like momentum improve to, I think it was 5.8%, sort of 6% through that July-August period. We think the business looks like it's got really strong momentum. There's still a high level of short interest in it that's not easy to cover in the screen. We think this one can keep going. Thanks so much. This question is from Lloyd. Thoughts on FleetPartners Group? Fleetwood, not one I've sort of looked at more recently. It probably goes to the point that we already hold a lot of, I suppose, similar investments within this space. Not one we sort of own at the moment, but have in the past. Clearly, the guys have done a good job in terms of restructuring the business and refocusing it. Probably not one we're ranking at the moment. Great, thanks so much. This question is from Stephen. Is a $0.10 per share dividend unfranked identical to a $0.07 per share dividend fully franked? I think that depends on you as a shareholder, the specific financial situation. If I understood the question correctly, and the value of franking credits to you. If a shareholder values income more versus the value of the franking, a higher unfranked dividend will be more beneficial and vice versa. I think it really comes down to the financial tax situation for the shareholder. Great, thanks so much. Ian asks, what is your opinion on mineral resources? Yeah, it's clearly been a very topical stock over the past 12 months. I think ultimately, if you think iron ore is, you know, going to iron ore prices again, it's sort of hanging around here and they can bring their production online without any hiccups, which does seem as though, you know, they're on track for it at this point. You know, it probably is good buying here, I think. Clearly, you know, I'm not going to call the bottom in the lithium market just yet. I think it's sort of bouncing along the bottom. If we continue to see more supply cuts and you start to see lithium prices, you know, lifting from here, then, you know, you get a free option on lithium too. Yeah, I think it's a buy here. Great. Peter asks for your thoughts on premium. Premium. We have HUB and NetWealth in our funds. Premium is a little bit smaller. I think for that one, we're still waiting to see real operating leverage because of the smaller scale. They can't use the scale advantage. Some of the larger challengers, such as NetWealth and HUB, have invested a lot into the tech stack and into the sales network and into products. Premium, you know, I think the result was actually a decent result, but I think we were looking for more sort of traction on the operating cadence to really look at it. We've got an investment in HUB as well. We probably just play that thematic sort of through HUB. I mean, that's a proven operator with incredible scale and still a very strong pipeline for flows. Great, thanks so much. Joseph asks, what is your view on Cedarwood's properties? Yeah, Cedar Woods is a buy for us. We own that one within WAM Microcap. Clear management, you know, executed strongly throughout this period. You're seeing broad-based price growth in each of their markets. WA has obviously been strong, Queensland as well, and Adelaide too. We think, much like FY25, the initial guidance they've set for FY26, 10 to 15% impact growth from memory is conservative. We think there's definitely prospects of earnings upgrades there. I'd say in terms of other catalysts, this one's pretty close, if not, for the ASX 300 inclusion in March. It's a fairly liquid stock, so that will be a tailwind for the share price. I'd say more medium term, we like their capital light partner strategy where they're bringing in some other partners to fund the development, which ultimately increases the ROE. We like Cedar Woods. It looks worthwhile. What is your view on Accent Group? AX1 is a sell for me. I think the brands are struggling for relevance. The ongoing disintermediation and brands looking to go more and more direct to consumer, I think makes it more and more challenging. We saw through the recent reporting period that pretty much every retailer reported buoyant current trading in July and August. I think Accent's comps were flat or all sort of very low single digits. Our question mark is probably more around the potential structural headwinds the business is facing at this stage. We just think there's better players elsewhere. Great, thanks so much. Marcel has asked if you have any thoughts on Singular Health Group. Is Vulcan Energy Resources a stock that you would consider? I can't say I can give you much insight on either, to be honest, sorry. I'm very happy to have a look at it. I've never even looked at SHG, so that's on this afternoon's list. Thanks, John. Ashok has asked if you hold Dicker Data in the portfolio. Unfortunately, we're keen to participate in the sell down, but that didn't sort of eventuate for us. I mean, Dicker Data, I think it's a buy. You've got obviously the tailwinds for small and medium businesses with an improving economy, falling rate environment. They should be a beneficiary of the AI replacement cycle in laptops and things like that. I think it's still coming up, that one. Great, thanks so much both. Those are the questions we have received. If we didn't get to any during the webinar, we will get back in touch with you. Before I hand over to you, Tobias, for your closing remarks, I just wanted to touch on how we will be traveling to Newcastle, Toowoomba, Gold Coast, and Noosa in October for our shareholder presentations. You will be able to meet the investment team and grab a coffee with them during this presentation. If you are interested, please do register using the QR code displayed on the screen. I will pass over to Tobias for some closing remarks. Thank you everyone for sending through the questions and to Sean and Emma Coleridge for joining us today. The recording of the call will be available on our website shortly. As always, these are your companies. Please get in touch with us via phone or email at any time. Really appreciate your support. Thank you and have a great afternoon. Thanks so much.