# WHF - Whitefield Industrials



## piggybank (31 March 2014)

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## Belli (24 May 2020)

Finally caught up with some info on this holding of mine.  It's a small LIC of less than $0.5m.  Have held for a number of years.

Dividend 10.25c ff up from 10c ff pcp.  10% of dividend is LIC Capital Gain Discount.  Payable 12 June.  DRP and BSP is 2.5% discount to VWAP.

According to some numbers it has sufficient reserves to sustain dividend for a while.


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## Muschu (24 May 2020)

It's done very well. Unfortunately I sold a few months back at $4.50.  NTA is about that now despite some of the top holds including the banks


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## Belli (24 May 2020)

Had a look at it's latest NTA:

Banks 20%
Healthcare: 16% (and CSL at 10% is its top holding)
The rest; and
Cash 12%

Seems to have been a large change to it's holdings in banks, although that could be a reflection of price movements too.  Bugger about its Real Estate holdings but it isn't far from VAS weightings there.  Different to AFI which has about 2% Real Estate.

And sure is a tiddler compared with other old LICs at $400m.

Have held - and added - since 2002.


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## Belli (12 June 2020)

Has announced an SPP.

I will consider and decide nearer to the closing date.  Always possible it will be pulled which has happened previously with similar offers from other LICs/Companies.


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## Belli (1 July 2020)

Applied for $20k of the SPP.  Now to wait until 10 July.


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## Belli (15 July 2020)

Received allocation @ $4.35 per share.

Good the Allotment Confirmation available from the share registry website rather than being sent via snail mail.


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## Belli (18 November 2020)

WHF reported for year ended 30 September.

Dividend of 10.25c ff of which 10% is LIC Capital Gain.

Net Profit after tax down 60.1%.

NTA post-tax down 12.2%

Diluted EPS 3.42c down from 9.87c

Showing how overall dividends received have been hit, to 30 September 2020 dividends received were $5,108,449 compared with $12,124,824 for September 2019.  (This should make for interesting times when ETFs declare distributions in late December.)

Cash has increased from $7.621M in September 2019 to $56.29M at September 2020.


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## Belli (18 November 2020)

Belli said:


> Cash has increased from $7.621M in September 2019 to $56.29M at September 2020.




Not correct.  It was $52m in 2019.  Not a clue where the other figure came from but probably due to a typo foul up.


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## Belli (19 May 2021)

Must be digging into retained earnings to support the dividend as its EPS is down quite a bit understandably.  DRP and Bonus Share Plan is at 5% discount to VWAP 26 May to 1 June.


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## Belli (14 July 2021)

WHF went into a trading halt this morning and subsequently announced an Institutional placement of 14,400,000 shares @ $5.56.  This is an 11% discount to the VWAP over the previous five trading days.

Shareholders will subsequently be offered an SPP, the details of which are yet to be announced, at a  price is "consistent with the placement."

Trading halt will be lifted on 16 July the day after the placement book closes.


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## Belli (24 July 2021)

Belli said:


> Shareholders will subsequently be offered an SPP




I've considered the SPP offer and have decided I will not participate.  Since 2015 it has already had five SPPs.  While I have participated in the previous SPPs, the present institutional placement did not go down well with me.  I do understand the company is permitted to undertake them.  However, to me the company has treated smaller share holders in a shoddy manner with the placement.

Although not participating, I will retain it for now as the dividends are relatively good, despite the weird dividend policy (paying based on underlying earnings and average long term realised gains.)  I won't add further to the holding and any funds I would have allocated will be directed to either one or two of the other LICs I hold or to VAS.  Later this FY I will review and consider whether WHF should be sold.


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## monkton (24 July 2021)

Belli said:


> I've considered the SPP offer and have decided I will not participate. Since 2015 it has already had five SPPs. While I have participated in the previous SPPs, the present institutional placement did not go down well with me. I do understand the company is permitted to undertake them. However, to me the company has treated smaller share holders in a shoddy manner with the placement.



Totally agree, very poor form especially compared with WLE where the smaller holders were put first with a generous offer.


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## Dona Ferentes (24 July 2021)

monkton said:


> Totally agree, very poor form especially compared with WLE where the smaller holders were put first with a generous offer.



Mr Freeman of AFI  has written a piece: https://www.afi.com.au/news/does-size-matter-for-listed-investment-companies

Does size matter for Listed Investment Companies?​_.... investors may be wondering if size matters with LICs. Well, it does and it doesn’t....._

Many of the LICs that have come to market over the last 10 years are small or do not appear to have focused enough on shareholder engagement;
there appears to be a strong link between size and discount;
larger LICs generally follow diversified strategies, and typically provide greater liquidity;
dedicate significant resources to shareholder engagement and marketing activity that is sometimes not possible in a smaller fund;
larger funds, which have economies of scale, can offer good value;
But ... this is all prefaced by performance. *Performance is the key determinant*. If a fund does not perform, it doesn’t matter what size it is.


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## monkton (24 July 2021)

Dona Ferentes said:


> Mr Freeman of AFI  has written a piece: https://www.afi.com.au/news/does-size-matter-for-listed-investment-companies
> 
> Does size matter for Listed Investment Companies?​_.... investors may be wondering if size matters with LICs. Well, it does and it doesn’t....._
> 
> ...



Thanks for posting that link, interesting article.
My question to you is to why you posted this in connection with my comment.
Perhaps it regards mention of WLE, good shareholder engagement but high fees or just mention of poor form by WHF as in @Belli 
's post?
I rarely post but like to read your (to me) very valuable comments & opinions.


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## Dona Ferentes (25 July 2021)

Hi @monkton ... Good question, and no really good answer, except that, like @Belli , I feel the LIC sector has its merits and is a good place to invest for those to whom the style, its aims and outcomes, resonates.

I have never held WHF though am familiar with the convertible preference shares a while back, as a source of income. The old prefs paid a good level of _ff_  income (useful for someone in low tax bracket).

WHF ticks a few of the boxes in the AFI article and I can see several reasons for holding the shares.
1. If you don't want exposure to resource shares, as it states it invests in *Industrial shares,* where stability of _"capital values and income are increased through the exclusion of the boom-bust mining sector"_.
2. Out of cycle dividend payments. With a FY ending in March, dividends arrive in mid May and December. Useful for retirement income.
3.  And also consistency, paying dividends during GFC and Covid turndown. In fact, this is the 31st year of maintaining or increasing dividends.
4. A $550 million Market Cap, it has liquidity, doesn't trade at a discount and can follow diversified strategies.
5. And of course the LIC structure, that is different to ETFs and Managed Funds

However, having a look at the company, there are a few things that stick out.
1. Management expenses around 0.40% including 25 bips to White Funds Mgmt
2. The Board. A Gluskie has run the show for yonks, the others are new. Management is 4 persons, with long experience but where is the cross-pollination and freshness?
3. The Holdings. There are, in the latest FY report, some *175 companies*, including holdings of well under $1 million for dozens of them. That is just lazy; may as well buy an index fund.
4. The Process. A strategy which exploits both trends (demographics and technology) and reversals (climate and China) in a _style neutral _quant process ("pinpointing where errors are made while avoiding our own").
5. And as a company, the_ "resources to shareholder engagement and marketing activity"  _seem to be served up, take it or leave it rather than real engagement.
6. The placement and SPP: interesting to see where this goes. Probably enhance the risk budget in new tech and ESG box tickers.


_I don't like quant or style neutral. I prefer macro, and bottom up. Not for me._


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## divs4ever (25 July 2021)

Dona Ferentes said:


> Hi @monkton ... Good question, and no really good answer, except that, like @Belli , I feel the LIC sector has its merits and is a good place to invest for those to whom the style, its aims and outcomes, resonates.
> 
> I have never held WHF though am familiar with the convertible preference shares a while back, as a source of income. The old prefs paid a good level of _ff_  income (useful for someone in low tax bracket).
> 
> ...



on  point 3.  i disagree on that ,  as a person  who likes a  diverse portfolio  sometimes  a small investment say $1K or $2K  can go a long  way   take a cheeky gamble  on LNC ( Linc Energy ) i was actually targeting BPT , but the LNC share price whistled past ( downwards ) so i grabbed a small parcel very cheap  , not long after investor sentiment rose so i REDUCED the holding  getting the investment cash out  but letting the profits run  , eventually LNC moved to the Singapore Stock exchange and i couldn't find  a cost effective way to hold those shares  so ( lucky me ) i used the surge in price at the time  , to swap into BKL ( below $25 at the time )

 BKL rose on China market dreams   as the share price was climbing and climbing  .. BUT one day  i noticed i could swap one  BKL share for 3 ( and a bit ) WES  shares  and the WES shares were carrying a dividend  and that swap was compelling to me 

  from a small dabble in July 2012   , i more than double my money on LNC , did MUCH better on BKL  , WES is slowly rising in price  ( from the sub $40 i paid ) and i have this useful parcel of COL to boot  ..ALL OF THAT by taking opportunities as they came along 

 i bet some experienced fund guys could make me look like an amateur  ( doing much the same )


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## monkton (25 July 2021)

Dona Ferentes said:


> Hi @monkton ... Good question, and no really good answer, except that, like @Belli , I feel the LIC sector has its merits and is a good place to invest for those to whom the style, its aims and outcomes, resonates.
> 
> I have never held WHF though am familiar with the convertible preference shares a while back, as a source of income. The old prefs paid a good level of _ff_  income (useful for someone in low tax bracket).
> 
> ...



Hi @Dona Ferentes, I too am a big fan of LICs esp. ARG & AUI, sold MLT a few months ago & hold WHF along with VAS & other more active LICs like WLE. Like these for the reasons most hold them, reliability of dividends (most of the time), franking & an index-like stable approach.As you said with WHF, the timing of these payments May, December fills a good gap.
But as @Belli said, too many capital raising, what's to show for it? How much is being used to top up funds after payouts as divs are income & capital gains? Perhaps none, but am currently feeling not as confident with them as previously. 
Felt the same of MLT a few months ago, along with successions in the firms, Millner down to Miller, in WHF Gluskie family have a big influence. Yes, am aware others are involved too.
Anyway, like @Belli am thinking of directing funds to VAS or another old school LIC. Guess the best thing about index ETFs is not having to worry about mergers,SPPs & the like in retirement especial;ly if I 'lose the plot' & a nearest & dearest needs to oversea things, am trying to make it as simple as possible.


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## Dona Ferentes (25 July 2021)

and another thing  

Coming across this statement:


> _Investors should pursue ESG approaches because doing so will safeguard returns in the future. We should aim for a low carbon world - not just low carbon portfolios - by supporting those companies which can help make the costs of decarbonising more affordable.  And, fortunately, this approach offers a decent chance of delivering outperformance along the way. - _Kate Howitt, portfolio manager for the Fidelity Australian Opportunities Fund.



just not sure the WHF collar allows this


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## Belli (25 July 2021)

I was annoyed WHF seemed to treat the smaller share holder with contempt.  I have held it for many years and I was fine with it but now not so much because of the institutional placement.  Not the best sentiment to have as an investor I know but that's how it is with me.

Never held MLT @monkton but I read about it.  Looks like MLT holders got the short end of the stick by my reading.  I hold SOL and have for a while but when I looked at BKW following the SOL/MLt tie up I did wonder if I should have bought BKW.  Not going to alter now - CGT issues and associated matters.  At least it is outside of the SMSF so gives me some Christmas spending money.



Dona Ferentes said:


> and another thing
> 
> Coming across this statement:
> 
> just not sure the WHF collar allows this




Yes, it is a growing theme and will continue.  Blackrock and Bloomberg got together some years ago to assess systemic risk to the financial system and identified industries which are best avoided as part of that review and concluded more money will be made from ESG rather than staying in older industries wedded to fossil fuel.  As they have been given a very large sums of money to manage from various bodies, those expect the managers to make good money for them.  They may be university endowments and others like that with an ESG flavour but their focus on the funds they have is to make more.


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## divs4ever (25 July 2021)

after the Hayne Royal Commission outcome  , i will NOT be pursuing ESG  approaches  , because the Royal Commission highlighted a failure in many large corporations ,  poor corporate governance  , and lacklustre regulatory oversight  , so what chance 'sustainability' in an ever-changing world  is a valid investment mantra  .

 i hope the investment team at WHF ( and all other LICs  ) stay with straight sensible investment strategies , and not choose the latest fashion  to attract new capital inflows .


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## divs4ever (25 July 2021)

wait for the opportunity ( BKW is heavily connected to property construction ) and see if BKW or SOL is the superior place to put NEW money  at that time 

 BKW  has more potential growth but also more potential risk ( from  economic cycles )

 sure my BKW holding is larger ( than the SOL holding ) but i needed to bias towards growth in my investing strategy 

 when the property bubble bursts  i will check the opportunities available  ( it might work out banks are the sweetest buy at that time )

 cheers


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## Belli (25 July 2021)

divs4ever said:


> after the Hayne Royal Commission outcome , i will NOT be pursuing ESG approaches , because the Royal Commission highlighted a failure in many large corporations , poor corporate governance , and lacklustre regulatory oversight , so what chance 'sustainability' in an ever-changing world is a valid investment mantra .
> 
> i hope the investment team at WHF ( and all other LICs ) stay with straight sensible investment strategies , and not choose the latest fashion to attract new capital inflows .




You really do have problems by conflating the word Sustainability in ESG in the context of the Hayne Royal Commission.  The Commission was not about environmental issues and you know that or at the minimum you should.  Your posts are complete rubbish.  They are just a collection of random and unrelated thoughts which spring to your mind.


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## Dona Ferentes (25 July 2021)

divs4ever said:


> i bet some experienced fund guys could make me look like an amateur



you make yourself look like an amateur, bud. - (aimed at divs4eva  ... I have put him on ignore_


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## divs4ever (25 July 2021)

Dona Ferentes said:


> you make yourself look like an amateur, bud.





 well i am retired  and haven't weathered my first real crash  , so maybe i am still an amateur 

 cheers


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## monkton (25 July 2021)

Belli said:


> Looks like MLT holders got the short end of the stick by my reading.



Yes & no & then again maybe (?). For the long term buy & hold investor with a preference for LICs, well, SOL is not an LIC, also if they have a holding of SOL this merger will increase their % of SOL which they might not be happy with. Plus is that MLT share price jumped from trading below NTA to well above NTA. Seems many or some chose to sell triggering capital gains, which some are not happy with unless in super in pension mode, then decision as to where to re-invest. For those who hold, they are swapping MLT at a smaller premium to NTA for SOL which it appears, has NTA of $22 or thereabouts with share price around $30 ( I could look this up for better accuracy, but I won't).
Thus 'short end of the stick'? Good if you're happy to sell,nice profit, bad for all the other reasons.


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## divs4ever (25 July 2021)

ESG should not be solely about environmental issues  either 

 AND if it is it shouldn't be a major theme in investment decisions 

to me ESG is a well run  business that doesn't leave a cess-pit behind ( when it uses bankruptcy to avoid the clean-ups )


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## monkton (25 July 2021)

Dona Ferentes said:


> and another thing
> 
> Coming across this statement:
> 
> just not sure the WHF collar allows this



Think it's on their website in the report that this will be taken into consideration. Will attempt to look this up sometime & post a link if I can.


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## divs4ever (25 July 2021)

monkton said:


> Yes & no & then again maybe (?). For the long term buy & hold investor with a preference for LICs, well, SOL is not an LIC, also if they have a holding of SOL this merger will increase their % of SOL which they might not be happy with. Plus is that MLT share price jumped from trading below NTA to well above NTA. Seems many or some chose to sell triggering capital gains, which some are not happy with unless in super in pension mode, then decision as to where to re-invest. For those who hold, they are swapping MLT at a smaller premium to NTA for SOL which it appears, has NTA of $22 or thereabouts with share price around $30 ( I could look this up for better accuracy, but I won't).
> Thus 'short end of the stick'? Good if you're happy to sell,nice profit, bad for all the other reasons.




 i do not hold MLT  , but when faced  with similar take-overs   i strongly prefer a scrip component  when there is an option ( MOST of the time )


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## Dona Ferentes (25 July 2021)

monkton said:


> Think it's on their website in the report that this will be taken into consideration. Will attempt to look this up sometime & post a link if I can.



I've been looking at it. The WHF prescription seems to call mining out as unfriendly to the environment. ... I have no idea what that means, by the way. - and they won't own mining stocks. 


> _Whitefield's ESG approach is both strategic through the exclusion of Resource stocks, and tactical through our quantitative assessment_




I am amazed at such a statement. The whole thrust to a decarbonised future is through _so called _green solutions, and these seem very much dependent on technology based on things like rare earths, lithium, minerals like Ni, Co etc.  And the absolute irony is these resources need to be extracted, as they exist in 1% type concentrations and involve complex metallurgical processes to extract. To get to a lower CO2 world involves orders of magnitude more effort.

Basically, WHF are signalling their virtue.


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## monkton (25 July 2021)

Dona Ferentes said:


> I've been looking at it. The WHF prescription seems to call mining out as unfriendly to the environment. ... I have no idea what that means, by the way. - and they won't own mining stocks.
> 
> 
> I am amazed at such a statement. The whole thrust to a decarbonised future is through _so called _green solutions, and these seem very much dependent on technology based on things like rare earths, lithium, minerals like Ni, Co etc.  And the absolute irony is these resources need to be extracted, as they exist in 1% type concentrations and involve complex metallurgical processes to extract. To get to a lower CO2 world involves orders of magnitude more effort.
> ...



Exactly so.


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## Belli (25 July 2021)

divs4ever said:


> ESG should not be solely about environmental issues  either
> 
> AND if it is it shouldn't be a major theme in investment decisions
> 
> to me ESG is a well run  business that doesn't leave a cess-pit behind ( when it uses bankruptcy to avoid the clean-ups )




No need to knock, walk right in.


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## Belli (19 November 2021)

WHF reported yesterday.  While I still hold I haven't added to the holding.


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## Belli (19 May 2022)

WHF reported yesterday.  Same dividend of 10.25c ff.


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## divs4ever (19 May 2022)

i keep forgetting to watch the preference shares  on these ( looking for an entry price )

 good luck


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## Belli (14 June 2022)

WHF paid its dividend today.  After the usual provisioning for expenses, etc, over 50% of it will go back into the share market this morning.  MIRNB as I am preferring exposure away from the bigger entities and I already have a swag full of them anyway due to my other holdings.


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## System (16 August 2022)

On August 16th, 2022, Whitefield Ltd changed its name to Whitefield Industrials Limited.


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## Dona Ferentes (16 August 2022)

Whitefield Ltd changed its name to _Whitefield Industrials Limited_.



> _This change seeks to highlight that the company invests solely in the Industrial segment of the market (being all industries other than Resources). This investment approach provides investors with a broad exposure to the Australian economy, an emphasis on sustainable, non-extractive industries and a 60% lower carbon emissions intensity than the ASX200._




 Financials ........................... 38.04%    
 Health Care ........................ 14.04%    
 Real Estate .......................... 8.79%    
 Consumer Discretionary ... 8.16%    
 Industrials ............................7.93%    
 Consumer Staples ............. 7.68%    
 Communication Services .. 5.15%    
 Information Technology .... 3.93%    
 Materials .............................. 3.89%    
 Utilities ................................. 1.69%    
Cash ....................................... 0.71%


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## Belli (19 August 2022)

Haven't added to the WHF holding for a while mainly due to getting my nose out of joint with its actions of doing a placement which I considered at the time was not the best thing by the shareholders.

Its latest quarterly report hints it will pay a steady 10.25c ff dividend in December.


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## Belli (16 November 2022)

What is this mob doing with another SPP?  Initial thoughts are if I do participate it will not be a large amount as I already hold plenty.


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## divs4ever (16 November 2022)

Belli said:


> What is this mob doing with another SPP?  Initial thoughts are if I do participate it will not be a large amount as I already hold plenty.



don't follow this normally , 

 do they need to redeem the preference shares , or are they just cashing up  hoping for a market plunge 

 it might be just me  but $5 doesn't look terribly attractive value  at current returns  ( obviously if you bought years back and cheaper you might be very happy with them )

***
Proceeds are being raised through the Plan for the purpose of investment in ASX listed securities, cash or cash equivalents in accordance with Whitefield’s investment strategy.

***

 i guess it will be a matter of faith in the company's investment skills


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## Belli (17 November 2022)

Humdrum to say the least.







  As expected dividend remains at 10.25c ff payable on 12 December and probably the same next half-year.


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## Belli (1 December 2022)

Considred the SPP offer.  Will only put in a portion of the dividend payable on 12 Dec.  My last buy for this LIC was some three years ago.  It's there mainly to cover household overheads such as rates, utilities and house/contents insurance so will be a provision for increased costs.


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## Belli (10 December 2022)

Both WHF & SOL pay their respective dividends on Monday.  In anticipation of this I have already distributed some funds towards the WHF SPP and VAS/VGS.

Nothing more to do until January.


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