Ann: Dividend/Distribution - WAM, page-8

It is good to see a rebound today, but my thoughts are this is a classic dividend trap. While the upcoming dividend has been announced with no change, the dividend reserve is all but gone. A good manager would have advised early of a potential reduced dividend, with a promise of restoring the dividend when profits allow. Will be interesting to see the NTA in a couple of weeks. Not sure how WAM are going to build up the dividend reserve from where is is now, but the real issue is the structure of performance incentives which drive behaviours which are not always in the best interests of the shareholders.