WAM - WAM Capital

[WRiley]

Besides the fact that you effectively dont own 1 out of every 5 shares with WAM (25% premium), you might want to check out the management fee structure for Wilson Asset Management. They take stiff profit dollars off the table which can't be used to grow the business or pay out dividends to WAM shareholders as effective as say MLT, AFI or ARG all with low <.2% management fee and steady growth dividends.

ARG, AFI and MLT are much bigger beasts with different investment strategy than WAM so cant really be directly compared.

pinkboy

Hmm,.. a point there you have, pinkboy,.. Yeah, I've heard that WAM hammers hard on the mgmt. fees, but I was always thinking that if they are able to deliver, why not let them earn the fee ?
I understand that MLT goes after the blue chips. What do ARG and AFI go after ?

 

[GlobeTrekker]

Given their dividend, is there any reason why WAM should not be preferred to the likes of AFI, ARG and MLT? I hold all of these bar AFI...

As I said in a previous post, WAM is now trading at a big premium to NTA (over 26% now) which is a bit of a concern, though I guess if he keeps performing then maybe its justified. I'm holding WAM but not buying anymore. The other three are now trading at slight discounts to NTA which is good for big LICs that essentially follow the index. I've bought a bit more of each recently.

Tq. For myself,.. I think I can handle the blue chips myself without going through MLT and then having to pay them mgmt.

None of those three charge separate management fees and performance fees like other LICs (including WAM) do, and their Management Expense Ratios (MERs) are very low - MLT's is only 0.12% of total assets, less than most ETFs.

 

[pinkboy]

Hmm,.. a point there you have, pinkboy,.. Yeah, I've heard that WAM hammers hard on the mgmt. fees, but I was always thinking that if they are able to deliver, why not let them earn the fee ?
I understand that MLT goes after the blue chips. What do ARG and AFI go after ?

Because they still take a nice slice of the pie even when they don't perform = lower profits to pay out shareholders.

Why not do some research of the other companies yourself? They announce their portfolio every month.

pinkboy

 

[Muschu]

I've looked at their portfolios and [as a conservative investor] am happy with having some of MLT, ARG and WAM. Nothing against AFI btw.

I have 17 other holds in my SMSF atm but, particularly in volatile times, these I find easier to sleep with... WAM, and I won't go check right now, has the highest ff dividend - about 6% I think.

My online immediate access cash a/c is paying 2.15%

 

[GlobeTrekker]

I understand that MLT goes after the blue chips. What do ARG and AFI go after ?

All three go mostly for blue chips. One small difference is MLT and AFI hold a higher percentage of their portfolio in the big 4 banks (around 30% of their total portfolio) as compared with ARG (21% of its total portfolio).

 

[WRiley]

All three go mostly for blue chips. One small difference is MLT and AFI hold a higher percentage of their portfolio in the big 4 banks (around 30% of their total portfolio) as compared with ARG (21% of its total portfolio).

Tq GT,... appreciated your insights. I do invest directly into the large-caps, hence, if I do invest into any of these three LICs, I'd be duplicating my investment strategy. But investing into WAM would be diversifying, I would say,....

 

[peter2]

WAM goes XD tomorrow and there seems to be some early weakness. Today and yesterday had some above average selling (supply).

With an NTA ~2.00, possibly the price has gone too high and the premium too large.

I've sold near the highs and plan to wait for the XD drop and additional dip that usually follows. I'll still wait for an up day as a signal bar.

 

[Belli]

I don't hold this particular LIC but have been watching it for sometime. While it does have a high yield, there are two reasons why I'm reluctant to place funds.

The first being the high management/performance fees which appear to go to external management companies associated with some of the Directors (I notice they still take Director's fees as well.)

The second is I've noticed that after almost every dividend payment, they seem to place shares with "professional and sophisticated" investors and the amount of shares issued just happen to be the difference between shares issued under the DRP and the number of shares if ALL shareholders participated fully in the DRP . In other words, retail minnows such as myself would likely be diluted. Not too sure about that approach.

 

[Tightwad]

yep, slightly miffed about that, bought a heap recently and i'd like to top up at that price.

 

[WRiley]

Anybody heard of the up and coming WAM Microcap ? Anybody here wants to be the early bird investors ?

 

[Tightwad]

i'd look at it, but i already have a microcap fund (doing terribly at the moment) and about 30% in lic's with small to midcap. should probably add some boring stuff to my folio.

 

[GlobeTrekker]

The second is I've noticed that after almost every dividend payment, they seem to place shares with "professional and sophisticated" investors and the amount of shares issued just happen to be the difference between shares issued under the DRP and the number of shares if ALL shareholders participated fully in the DRP . In other words, retail minnows such as myself would likely be diluted. Not too sure about that approach.

As an existing investor, I'm happy whenever they do this as it actually increases the NTA per share for everyone else when they sell shares at a premium to NTA. If the current NTA is $1.93 and they are selling these new shares for $2.37, it will increase NTA (marginally for such a small placement though) for all existing shares. It would be a different story if they were selling at a discount to NTA, which would have a detrimental effect on the NTA of existing shares. Sometimes after a professional placement they'll later offer the same deal to existing investors through an SPP, wait and see I guess.

Anybody heard of the up and coming WAM Microcap ? Anybody here wants to be the early bird investors ?

Yep, very interested in this. A chance to buy into Wilson's expertise in this area at NTA, without having to pay the current 25%+ premiums that exist for his other companies like WAM and WAX.

 

[WRiley]

i'd look at it, but i already have a microcap fund (doing terribly at the moment) and about 30% in lic's with small to midcap. should probably add some boring stuff to my folio.

Yep, very interested in this. A chance to buy into Wilson's expertise in this area at NTA, without having to pay the current 25%+ premiums that exist for his other companies like WAM and WAX.

Thank you for your replies.

If a microcap fund out there is doing terribly, chances are this space is not that easy to do. How can we be sure WAM can perform the same with that microcap fund as they have performed with the small and mid-cap (WAM) and WAX,... though I don't know what WAX invests into ?

 

[AlwaysBeClosing]

Newb question here..

I'm looking at the charts and the buyers/sellers, yet the prices don't seem to match up - why are the buyers' prices higher than the offers from the sellers?

 

[WRiley]

Newb question here..

I'm looking at the charts and the buyers/sellers, yet the prices don't seem to match up - why are the buyers' prices higher than the offers from the sellers?

I used to have this thinking as yours too,... until I started thinking in the following way : Investors who wish to BUY must look at column : Buyers, and investors who wish to Sell must look at column : Sellers. Then we'll be in the right frame of mind !

 

[Tightwad]

seems most of the small cap funds have been hammered lately, i'd be worried if it was only mine under performing. my issue with mine is it seems they hardly hold any cash and held onto the previous dividend.

 

[WRiley]

seems most of the small cap funds have been hammered lately, i'd be worried if it was only mine under performing. my issue with mine is it seems they hardly hold any cash and held onto the previous dividend.

Hmm,... yr small-cap fund hardly holds any cash ? You're right,... kinda dangerous there,... what fund and fund co is this pls ?

 

[Muschu]

Is the WAM micro-cap available now or still in the future? Any ticker at this point?

 

[Tightwad]

Hmm,... yr small-cap fund hardly holds any cash ? You're right,... kinda dangerous there,... what fund and fund co is this pls ?

ausbil microcap, seemed they were on 5% cash a while ago, 12% now if what i've read is accurate.

 

[peter2]

Newb question here..

I'm looking at the charts and the buyers/sellers, yet the prices don't seem to match up - why are the buyers' prices higher than the offers from the sellers?

WAM is currently in a trading halt. No shares can be traded. However orders to buy and sell can be placed into the system while it's closed and we're seeing those orders that have been placed.