WMX - WAM Income Maximiser

[divs4ever]

now i hold WAX ( 'free-carried' ) and PL8 , and SO FAR am watching rival WHI

on this offering i want to see more details , WAX is fee heavy BUT has produced the goods ( for me ) , so i don't mind all the performance fees

so i want to circle this ( and WHI ) very carefully

yes i have done nicely on PL8 , but was patient enough the nibble at PL8 when under $1 ( which it did several times )

CAUTION , these high turnover div. harvesting strategies run the BIG risk of being a 'capital-burner ' ( like HVST , which i also hold )

 

[rolly1]

Wouldn't be surprised to see the same sort of price action as when they brought WAR to the market over the initial months.

 

[divs4ever]

well he infers a steady reliable income ... AND capital gain ( but is that more than inflation )

now i read somewhere he is hoping to churn the portfolio up 400% turnover per year which smells a lot like div. stripping if so what will the franking credits be like

now i have already had a very nice ride on WAX over the last 13 years , but can he do that again AND pay monthly divs ( WAX pays six monthly )

i think i would like to see how he is going to do this in a chaotic market , surely he won't go heavy with derivatives on the portfolio

 

[divs4ever]

having dabbled in the corporate ( and bank ) debt market between 2011 and 2017 , i can't see how he will make the returns at current interest rates ( even when buying at a discount to par )

i won't say 'impossible ' but i want to see some result first

 

[rolly1]

A lot of his funds have a crossover of assets.
Target Income Return:
The company aims to provide a target income return of RBA cash rate + 2.5% p.a., currently expected to be in excess of 6.0% per annum, including franking credits.
6% incl franking credits .... lol then take out fees and taxes. You can get 5.25% with cash at Ubank at the moment.
Probably not getting a good take up considering the number of spam emails I'm getting from them.

 

[divs4ever]

A lot of his funds have a crossover of assets.
Target Income Return:
The company aims to provide a target income return of RBA cash rate + 2.5% p.a., currently expected to be in excess of 6.0% per annum, including franking credits.
6% incl franking credits .... lol then take out fees and taxes. You can get 5.25% with cash at Ubank at the moment.
Probably not getting a good take up considering the number of spam emails I'm getting from them.

just as well that email account is broken then ( already choked with spam )

ah yes the cross-overs , that sometimes concerns me as well , positions so large ( across say 4 funds ) that a quick ( profitable ) exit is difficult

if this fund is successful it would need to make 8% ( before fees , etc ) to make it worthwhile to collect the divs monthly to add to that ,he will probably need to accumulate cash reserves ( from the divs ) for about six months so payouts can be 'smoothed '

BUT they do have the runs on the board MAYBE they can do it again