Whitefield Group outlined recent results and portfolio themes during its quarterly webinar, with Managing Director Angus Gluskie and Executive Director Will Seddon covering half-year updates for Whitefield Income and a third-quarter update for Whitefield Industrials (ASX:WHF).
Whitefield Income: half-year earnings and dividend settings
Gluskie described Whitefield Income as a systematic, active strategy across ASX 300 stocks that aims to capture what the team sees as stronger “income recognition” in share prices later in companies’ six-month earnings and dividend cycles. The fund, he said, emphasizes profitable, cashflow-positive dividend payers and is designed to adapt its exposures as economic conditions change.
- Gross income: just over A$11 million
- Profit after tax: A$7 million
- Earnings per share: A$0.041
Gluskie said income generation had been consistent across the six months and since listing, in line with the fund’s prior experience in an unlisted format.
On dividends, Whitefield Income has paid monthly fully franked dividends since April 2025 at A$0.00583 per share, which management said equates to an annualized return of 7.6% including franking credits. The company also determined a first six-monthly top-up dividend of A$0.03 per share, fully franked. Annualizing both the monthly dividend and the top-up takes the annualized dividend rate to 8.2%, according to the presentation. Gluskie emphasized that the monthly dividend is designed to be consistent, while top-up dividends are expected to vary based on market conditions, earnings over the period, and any need to retain profits.
Whitefield Income: returns, portfolio positioning, and trading premium
Seddon reported that portfolio gross income (including franking credits) was 5.1% for the half-year and 10.7% for the rolling one-year period. Total return (including franking and after expenses) was 11.8% for the half-year, bringing the rolling one-year total return to 20.2%. Seddon said the one-year result was about 20 basis points ahead of the equal-weighted benchmark and roughly 8% ahead of the market-cap-weighted equivalent value index.
He said the 12-month outcome reflected two distinct halves: a strong first half that was about 3% ahead of the benchmark, and a second half in which the portfolio returned 8.118% but lagged an “exceptionally strong” 14% index return driven by several smaller, unprofitable companies. Seddon noted the portfolio typically would not be invested in that type of company, but “managed to more or less keep pace.”
Gluskie also discussed trading levels relative to net asset backing, stating the company had traded at a moderate premium since listing. He attributed support to a growing investor base, while noting a November capital raising reduced the premium slightly in December before it expanded again in January. The company increased capital by A$79 million through a share purchase plan and placement in November, with Gluskie saying the placement closed earlier than expected due to strong demand.
Whitefield Industrials: nine-month earnings, dividends, and performance
Turning to Whitefield Industrials, Gluskie said the vehicle holds a diversified portfolio of ASX 200 stocks excluding resources, targeting an overweight exposure to non-resource sectors. The stock selection process is based on Whitefield’s quantitative analysis framework, which aims to target “reliable areas of value accretion” versus its benchmark.
For the nine months to December (with a March year-end), Whitefield Industrials reported:
- Net profit after tax: A$15 million
- Earnings per share: A$0.125
Gluskie said these outcomes were essentially similar to the prior year. He explained that while most of the portfolio experienced a small increase in underlying earnings, prior-year special dividends—specifically from Westpac and Woolworths—were not repeated and offset some of that growth. Management said it was seeing some earnings growth and dividend increases during the current reporting season, but wanted to see the season “play out” and would update at the full-year result.
On dividends, Whitefield Industrials pays six-monthly, with the next dividend payable in June 2025. Gluskie said the company currently expects the June 26 dividend to be similar to the last half-year dividend of A$0.105 per share, fully franked, subject to final determination after the March year-end and market conditions. He also pointed to a chart showing long-term dividend growth back to 1970, stating the company has maintained or increased its dividend consistently since the introduction of imputation in the late 1980s.
Seddon said the portfolio delivered a total return of 8.6% for the nine months (before franking), versus the benchmark at 7.9%. He added that the portfolio was ahead of its benchmark over nine months and across one-, two-, three-, five-, 10- and 40-year periods. Sector positioning at quarter end included overweights to industrials, REITs and consumer staples and underweights to healthcare, consumer discretionary and financial services.
Discounts, macro themes, and investor Q&A highlights
Gluskie said Whitefield Industrials’ asset backing remained higher than its current share price, describing the discount as an opportunity for buyers. He gave an example: buying at a 10% discount could lift an investor’s return to 11% per annum if the underlying portfolio compounded at 10% per annum, though he cautioned that changes in the premium/discount would also affect outcomes.
In a discussion of market themes, Seddon said the last year had featured unusually wide dispersion in stock outcomes, which he linked partly to uncertainty around U.S. policy under President Trump’s second term. He argued that bipartisan alignment on certain U.S. policy directions could contribute to a sustained “reordering” of global trade and technology flows, driven by government intervention and what he described as a state-backed high-tech arms race. He said the team would expect elevated global capex, innovation and inflation, potentially sustaining wider dispersion of outcomes and opportunities to outperform indices.
During Q&A, management addressed several investor topics, including:
- Portfolio construction: Whitefield Income typically holds around 70–100 stocks and filters from the ASX 300; banks and miners may be held “periodically.”
- NAV relevance: Gluskie said net asset backing drives long-term returns, while share price matters most at the points of buying and selling.
- Premium vs discount: Management attributed the premium in the income-focused vehicle to demand for income, while the industrials discount was described as consistent with broader listed investment company conditions.
- Costs: Operating expense ratios were cited at just over 0.4% for WHF and around 1% for Whitefield Income.
- DRP/bonus shares: Management said it is not currently offering a dividend reinvestment plan for the monthly dividend vehicle due to complexity, while it would aim to keep the bonus share plan available for WHF unless regulatory or tax changes altered its value proposition.
The company said the next quarterly webinar is scheduled for May.
About Whitefield Industrials (ASX:WHF)
Whitefield Limited operates in the securities industry primarily in Australia. The company invests in shares and securities. The company was founded in 1923 and is based in Sydney, Australia.
