LIC Industry: A Quick look at Wilson Asset Management Family

  • Jan 07, 2020 AEDT
  • Team Kalkine
LIC Industry: A Quick look at Wilson Asset Management Family

Last year was a dynamic year for equity markets due to several macro-economic events including concerns regarding US-China trade war and Brexit. Various asset management group were impacted by the softness in the equity market.

Now that 2019 is finally over, investors have started to look for investment companies which could provide them exposure to diversified companies and help them expand their overall wealth. Let us now look at one asset management giant, which has a strong track record of proving return to its investors.

WAM Family

Wilson Asset Management Group, an LIC’s family which has invested more than $3 billion in undervalued Australian and global growth companies on behalf of over 80,000 shareholders, constitutes several listed investment companies (LIC’s) including: WAM Capital, WAM Global, WAM Research, WAM Leaders, WAM Active and WAM Microcap.

*Market cap calculated from Share price as at 6 January 2019

The Group follows a unique investment methodology:

  • a research-driven process focused on identifying undervalued growth companies; and
  • a market-driven process that takes advantage of market mispricing opportunities.

WAM Capital (ASX: WAM)

In the last one year till November 2019, WAM Capital (ASX: WAM) asset portfolio increased by 18.3%. However, during this period, S&P/ASX All Ordinaries Accumulation Index increased by 25.9%. In the November month alone, the company’s portfolio increased by 1.2%, with the major contributor being the largest earth-moving equipment rental company, Emeco which had a strong start to FY2020 and expects the earning of the first half to grow by 15-17% over the previous corresponding period. The company has a strong record of paying fully franked dividends, as depicted in below image.

(Source: Company Reports)

By AEDT 1:05 PM, WAM stock was trading at a price of $2.285.

WAM Leaders (ASX: WLE)

The portfolio of WAM Leaders increased by 4.1% during November 2019, with major contributors being global packaging company Amcor and financial services brand Virgin money. WAM leader also has a strong history of paying fully franked dividend and had paid record full year dividend of 5.65 cents per share in 2019.

Till November 2019, the company had gross assets of $1,025.9 million and NTA before tax of 130.16 cents.

WAM Global (ASX: WGB)

Through its continued focus on undervalued growth opportunities in the international markets, WAM Global investment portfolio has increased 9.0% in the financial year to November 2019.

The company is focused on communicating and engaging with the owners of the LICs that it manage while maintaining good relations with WAM Global shareholders, asking for their feedback and discussing the outlook for the company. The company entered FY20 with a conservative balance sheet, no debt and a flexible and proven investment approach with the patience and expertise of an experienced investment team. The Company will continue to seek opportunities irrespective of market conditions and it remain well positioned to capital on these as they emerge.

WAM Microcap Limited (ASX: WMI)

Through its continued focus on undervalued growth opportunities in the micro-cap Australian market, WAM Microcap Limited has outperformed the S&P/ASX Small Ordinaries Accumulation Index by 13.7%, increasing 17.9% in the financial year to November 2019.

Throughout FY19, the company was focused on delivering shareholders strong, risk adjusted returns derived from investments in undervalued micro-cap growth companies with a market capitalisation of less than $300 million at the time of acquisition.

In 2019, the company recorded an operating profit before tax of $8.6 million and an operating profit after tax of $7.0 million, reflective of the strong investment portfolio performance over the period. During the year, the company declared a fully franked final dividend of 2.25 cents per share, taking the fully franked full year dividend to 4.5 cents per share, a 12.5% increase on the prior year.

The company entered the FY20 with a conservative balance sheet, no debt and a flexible and proven investment approach with the patience and expertise of an experienced investment team.

WAM Research (ASX: WAX)

Through its continued focus on undervalued growth opportunities, WAM Research has outperformed the S&P/ASX All Ordinaries Accumulation Index by 3.7%, increasing 9.3% in the financial year to November 2019. During the last financial year, the company invested in 112 individual companies and at 30 June we had investments in 46 companies.

In 2019, the company recorded an operating profit before tax of $0.4 million and an operating profit after tax of $1.6 million, lower than the last year, reflective of the performance of the investment portfolio over the period which was impacted by the heightened volatility in the Australian equity market.

Despite this, the company’s board continued to enhance shareholder returns through the payment of fully franked dividends in FY2019. The fully franked full year dividend increased to 9.7 cents per share, with the fully franked final dividend being 4.85 cents per share.

WAM Active (ASX: WAA)

Through its continued focus on market mispricing in the Australian equity market, WAM Active (ASX: WAA) investment portfolio increased by 9.3% in the financial year to November 2019. In FY19, the company’s fully franked full year dividend increased to 5.9 cents per share, an increase of 3.5% on the previous year with the fully franked final dividend being 2.95 cents per share.

BY AEDT 1:05 PM, WAA stock was trading at a price of $1.080 with a market cap around $50.11 million.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK