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WAM, WAM CAPITAL LIMITED
nipper
post Posted: Nov 4 2019, 07:39 PM
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WAM Global Limited (ASX: WGB)
QUOTE
WAM Global is run by the Wilson Asset Management team, it’s aiming to be the global shares version of WAM Capital Limited (ASX: WAM), which has been running for two decades and has a grossed-up dividend yield of 10%.

I think there are many more opportunities in places like North America, Europe and Asia than on the ASX, so WAM Global could be a good way to get targeted exposure to those undervalued growth opportunities.

It’s trading at a 12% discount to the net tangible assets (NTA) at 30 September 2019 and over time I’m sure the dividend yield will steadily grow to a similar yield level as the newer WAM LICs.
- Motley Fool



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Oct 31 2019, 04:40 PM
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QUOTE
Declining to name names, Wilson said he had his eye on a number of his competitors in the listed space that are currently trading at a discount to net tangible assets.

WAM entities hold existing minority stakes in LICs Contango Income Generator, Templeton Global Growth Fund and Concentrated Leaders Fund.

He reiterated his intention to negotiate a successful takeover of the Blue Sky Alternative Access Fund despite stalled talks, and dismissed any residual reputation damage associated with the troubled Blue Sky brand. "Oh, we'd rebrand it," he said.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 17 2019, 11:22 AM
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Geoff Wilson's funds weather worst year in decade

QUOTE
Geoff Wilson, the fund manager who helped kill Bill Shorten’s election prospects with a grass roots “retirement tax” campaign, has ruled off his toughest year in equity markets in more than a decade. Four of the six listed investment companies managed by Wilson Asset Management failed to beat their benchmarks in the year ended June 30. The six funds have $3.3 billion in assets under management.

Wilson Asset Management’s flagship $1.3 billion WAM Capital underperformed the S&P ASX All Ordinaries Accumulation Index by 9 per cent in financial 2019. It was only the third time in 20 years that WAM Capital had not beaten its benchmark. The other underperforming years were financial 2005 and 2007-08. WAM Capital has an annual performance since inception of 16.7 per cent (before expenses, fees and taxes). WAM Active, WAM Leaders and WAM Research also failed to beat their benchmarks for the year to June.

There are three ways to measure the performance of a listed investment company (LIC). Its share price performance, which can be influenced by external factors, its investment performance, which is determined by the decisions of portfolio managers, and the dividend growth.

Bill Shorten's revenge?
In 2019, several funds in the Wilson family of funds only managed to get one out of three measures right because of cautious decisions about the deployment of cash and a sell-off in the listed investment company sector. Dividend growth has been consistent, with gross yields running at between 7 and 9 per cent.

The LIC sell-off could be seen as Shorten’s revenge against Wilson for his campaign to preserve the concessional treatment of franking credits for retirees who receive cash back from Treasury.

Wilson says the fall in the share prices of listed investment companies was caused by retirees selling stock because of fears Shorten would be elected. “To me the interesting thing is the whole LIC sector has, in the last six months, been under selling pressure,” Wilson says. “We do a survey when shareholders sell our shares and it shows that a third to a half of the shareholders who sold in the six months before the election did so because of their concerns about franking credits.” Wilson says the LIC share price falls were exacerbated by a buyer’s strike caused by the expectation Shorten would win the election as predicted by opinion polls.

Caught out by Fed U-turn
Separate to the decline in the price of the Wilson LICs was the underperformance of several WAM investment portfolios.

Wilson says WAM Capital underperformed because it was caught out by the US Federal Reserve doing a U-turn on monetary policyfrom tightening to easing. “Towards the latter part of last year I was nervous about the quantitative tightening and its impact on the US economy and the flow on effect to price earnings ratios,” he says. “The Fed was taking $US50 billion ($71 billion) to $US60 billion a month out of the market through quantitative tightening and we have seen what happens to markets when liquidity is removed.”

The flagship WAM Capital lifted its cash level last December to 53 per cent of the gross assets, or about $650 million in cash and fixed interest. Wilson says he was ready to take advantage of an expected end to the US bull market in equities.

The Wilson philosophy puts a priority on the preservation of capital. Within that framework it invests in companies that will deliver growth because of a catalyst. Also, Wilson takes advantage of trading opportunities. “This is the longest bull market in the US ever and it will come to an end at some point,” he says. “In December last year I expected the market to be 30 to 40 per cent lower by December this year.”

Risk we end up with Japan's economy
After the Fed’s U-turn WAM Capital rapidly deployed its capital to ride the very strong rally in share prices. By April it had cut its cash balance to about 19 per cent of assets. The fund has since built up its cash to 25 per cent of assets. The cash position in each WAM fund varied over the past year depending on the views of portfolio managers. The WAM Global fund had 11 per cent cash in December.

Wilson says all six WAM funds have performed strongly over the past six months with performances ranging from positive 10.8 per cent for WAM Active to positive 19.4 per cent for WAM Leaders.

Wilson is cautious about the outlook for equity markets. “We are getting the benefit of lower interest rates,” he says. “To me the big risk going forward is we end up with a lower growth economy similar to Japan and that over time price earnings multiples contract.”
The AFR
Wilson Asset Management will earn about $35 million in management fees this year including a $1 million performance fee from WAM Microcap.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 9 2019, 09:05 PM
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QUOTE
WAM Research (code WAX) is a listed investment company (LIC) which invests in promising small and medium ASX growth businesses. It generates profit from both the dividends it receives and the capital growth it achieves, which it then pays a growing dividend from.

It has been growing its dividend each year since the GFC and its portfolio has generated market-beating returns before fees and expenses since the GFC.

WAM Research currently offers a grossed-up dividend yield of almost 10%.

- touted as a dividend play (in these difficult times when low cash returns have punters searching elsewhere) but if the payout is part dependent on ongoing positive returns, then it may have a problem. Better to find a distribution based on cash profit produced (in these troubling times)




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Feb 8 2019, 03:02 PM
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In Reply To: blacksheep's post @ Feb 6 2019, 09:55 AM

Getting a little bit messy? https://www.smh.com.au/politics/federal/tax...207-p50w93.html

QUOTE
Some shareholders in funds run by Wilson Asset Management also remain concerned that their details are being used for Liberal Party promotional material.

One investor said he had been "targeted with MP Tim Wilson's propaganda and petition-signing emails, as were my colleagues who hold shares in the listed entities".

"My email address isn't listed anywhere publicly, and I've never had any dealings with the MP's office," he said. Wilson Asset Management has strongly denied sharing any client details.

Another voter said they received "two Wilson Asset Management newsletters" after being contacted by Mr Wilson in their electorate. Mr Wilson has declined multiple requests for comment on whether he has shared the private information of voters in his electorate with the financial services firm. The two collaborated on a government-run website and petition, which Mr Wilson has not ruled out the company partly funding.

A third, Brighton resident Gwen Woodford, said "yes" to a robocall by Mr Wilson, only to receive multiple emails promoting Wilson Asset Management funds and an official letter from Mr Wilson.

"I just think none of the contact passes the sniff test," she said.




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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Feb 6 2019, 09:55 AM
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In Reply To: nipper's post @ Nov 20 2018, 02:13 PM

QUOTE
Hundreds of retirees were on Tuesday morning attending a Wilson Asset Management investor briefing, where small cardboard placards reading "don't tax us twice" and "stop the stealth tax on superannuation" were handed out.

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According to this article, not as "simple" as it first appeared - Wilson and Wilson: The MP, the fund manager, and the franking credits inquiry

QUOTE
A high-profile fund manager leading an assault against Labor's changes to franking credits once boasted about using a taxpayer-funded inquiry to maximise the chances of defeating the policy.

In an audio recording obtained by The Sydney Morning Herald and The Age, veteran fund manager Geoff Wilson claims he contacted Liberal MP Tim Wilson to ask for parliamentary hearings into Labor's proposed changes to be scheduled at t

QUOTE
Audio of an investor-only phone call in September reveals Geoff Wilson boasted of discussions with Mr Wilson months before the public hearings began.

"We have to maintain the pressure so we get the result," the fund manager told investors.

"I was saying it would be nice if one of the hearings could be on a day we are doing a roadshow. Then we could do a little protest, we could have our placards and we could walk down there."

Wilson Asset Management's "franking credit roadshow" coincided with a hearing of the parliamentary inquiry in Sydney on November 20.he same time as of one his own six-monthly investor roadshows.

https://www.smh.com.au/politics/federal/wil...205-p50vqk.html

It can also be revealed Mr Wilson and Geoff Wilson are related: the MP's great grandfather is the fund manager's grandfather.

WAM shares also up considerably yesterday
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 

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nipper
post Posted: Nov 20 2018, 02:13 PM
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In Reply To: blacksheep's post @ Nov 20 2018, 01:04 PM

I went to the local meeting yesterday. Remarkable growth story with investors - from sub 20 at Belconnen 4-5 years ago, packed out the QT Hotel with 200+. The older set packed in - no spring chicken myself, though hirsute, I felt rejuvenated !

As a love-in, there was much to endorse it; not that the WAM stable (WAM, WAX, WAA, WLE, microcap fund, global fund, plus FGX, FGG) totalling over $3bill is that differentiated from other LICs. Geoff W is the animated ringleader .... and therein lies huge key-man risk, as he is 66.

He certainly gave the Shorten/ Bowen proposals a huge swerve:
Retirees mobilise to stop franking credit change
https://www.afr.com/personal-finance/supera...20181119-h18290
QUOTE
... shareholders have gathered in Sydney to protest Labor's plan to make franking credits non-refundable, a policy that is expected to leave one million retirees worse off.

Hundreds of retirees were on Tuesday morning attending a Wilson Asset Management investor briefing, where small cardboard placards reading "don't tax us twice" and "stop the stealth tax on superannuation" were handed out.

Veteran fund manager Geoff Wilson has been among those leading efforts to convince Labor to dump its franking credit changes.

Mr Wilson told the gathering that the policy would "devastate the lives of a group of Australians".

He encouraged the crowd to march on a public hearing of the House Economics Committee, which is inquiring into the implications of the proposed changes.

The SMSF Association estimates that a million people will be affected even with Labor's "pensioner guarantee" carve out. Mr Wilson said the policy was inequitable and illogical because people with a part-pension on a certain date would still be eligible for refunds.

Some have argued that retirees are too heavily invested in Australian shares because of the franking credit incentive. But Mr Wilson said investing in Australian businesses was good for capital formation. "They want to encourage you to invest overseas, which is more risky," he said.

Mr Wilson told investors that the world had seen the top of the bull market. "​We are nervous and we have increased our cash levels to reflect that," he said. "We like to be positioned for the worst and to hope for the best."




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Nov 20 2018, 01:04 PM
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WAM's November 2018 Shareholder Presentation
https://drive.google.com/file/d/1_VZ01poVwn...ayoMxoOwU5/view



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Jun 19 2018, 06:02 PM
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Global LIC to list
QUOTE
Geoff Wilson might have just raised the biggest whack of capital in Wilson Asset Management's history, but the veteran fund manager wants his investors to know that he won't rush to put it to work. WAM will announce on Monday that the IPO of its first international equities listed investment company, WAM Global, has closed after raising $466 million.

The oversubscribed raising is the biggest in the history of WAM's stable of funds, eclipsing the $392 million raised for its first large stock company, WAM Leaders. The firm had been targeting a $330 million raising for the WAM Global LIC. Almost 8000 of the investors in 13,000 WAM Global were existing shareholders in LICs across the WAM stable.

Wilson said from New York that he was thrilled with the response from investors, who had been asking for WAM to venture into global equities for the past 10 years. "Now the challenge is to perform," Wilson says.

WAM Global will start investing in the next week or so, led by lead portfolio manger Catriona Burns. But while Wilson emphasises WAM Global's capital pile is relatively small in the world of offshore investing, his team will be in no rush to put the whole pile to work; around 25 per cent to 30 per cent will be held in cash, and perhaps even more.

This is wariness is driven by two things. First, Wilson is all too aware that the US in the midst of its third-longest bull market, which will become the second-longest in a month or so. WAM would love to be buying undervalued growth stocks in a more volatile market, where opportunities can become cheaper.

In addition, Wilson points out that the grand narrative of synchronised global growth has fractured a little since the start of the year, with ructions in Italy and some weaker-than-expected data from other parts of Europe creating some nerves.

While Wilson says the mood in the US remains very upbeat – except for all the businesspeople who he says start their conversations apologising for President Donald Trump – he does have concern that the White House's tax cuts have effectively brought earnings growth forward by a year or so.

"It's brought the growth forward. He's given the economy a sugar hit," Wilson says.

With this in mind, WAM Global will factor into its investment decisions a view on how the US economy and the broader market might be performing in a couple of years.

"Obviously it's very important that we are buying at the right time and buying when we can see a catalyst that's going to change a company's valuation," Wilson says. "But the exceptional opportunities come with significant dislocation. We are having minor dislocation, but we are still very wary of the market."

While WAM Global should, on the surface, have a much larger universe of stocks to examine than with its Australian-focused LICs do, Wilson says the gap isn't as big as it might appear.

In Australia there around 2500 listed stocks; in the US the number has fallen from around 8000 to 4300 in recent years – something that Warren Buffett and JP Morgan's Jamie Dimon argue is due to the short-term focus of US markets, which they claim has "discouraged companies with a longer-term view from going public at all".

Wilson says the remaining universe can be filtered pretty quickly to find the undervalued small and mid-sized companies WAM Global will focus on – certainly don't expect them to be buying any FAANG stocks. The firm's four key filters – earnings growth, valuation, industry position and management – will be used by WAM Global, with Wilson putting an accent on the latter in a time when the royal commission has reminded him of the "decay of moral values" in business.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Apr 24 2017, 07:36 PM
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fresh from the failed attempt to shoehorn into Hunter Hall (HHV) and deliver for the trouble, WAM and sister funds WAX and WAA, has announced a 5+% stake in another LIC, the chronically underperforming WDE (which should change its name from Wealth Defender Equities to Wealth Destroyer Equities).

Whether 'pressure will be applied' to WDE remains to be seen; it is more than 10% below NTA and has been since listing.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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