(This is a bit of a negative for the options, but you will only miss the interim (4c) between now and exercising or selling the options in October.)
Hi the way I make it you will pick up dividend if you
exercise before the the shares go ex-dividend which will
be end of Sept. So the the trick is buy the options now
@7cents exercise end of Sept @1.08 and pick up the
dividend.
WILSON LEADERS LIMITED
A.B.N. 64 106 845 970
WILSON LEADERS LIMITED (WLS) – JULY 2007
INVESTMENT UPDATE & NTA
Wilson Leaders Limited (WLS) listed on the Australian Stock Exchange on the 10th
February 2004 after raising $44.2 million. Wilson Leaders is a Listed Investment
Company that invests in a portfolio of Australia’s leading public companies.
As at 31 July 2007
NTA before tax 139.87c*
NTA after tax and before tax on unrealised gains 138.02c
NTA after tax 133.45c
*This is after the provision of $2,083,916 (3.4 cents per share) in tax to be paid
for the 2006/07 year.
MARKET OUTLOOK
Global equites fell in July in response to a sharp deterioration in credit markets. Risk
spreads on all credit instruments rose sharply as losses on sub-prime mortgages
spread to other debt markets. The repricing of risk has resulted in large losses for a
number of leveraged investment funds holding these securities and the withdrawal of
liquidity from debt markets generally. The Federal Reserve has estimated total losses
on securitised sub-prime investments alone could extend to $US 100 billion.
Financial institutions lead equity markets lower as investors re-appraised the outlook
for these companies in a tighter credit environment.
Financially leveraged sectors such as Listed Property Trusts and Infrastructure
continued to struggle defying their so called “defensive” qualities. Australian
companies with sizable offshore businesses performed poorly also with the higher
Australian dollar threatening the value of translated profits.
Shares that have benefited from corporate interest also struggled as the prospect of
private equity activity diminished.
Economic Data in July was mixed: softer housing approvals and retails sales data;
stronger credit and housing finance data. The 0.9% (qoq) increase in the CPI was
concerning coming in at the top of the Reserved Banks preferred range, the
Australian dollar quickly moved higher in expectation of an increase in interest rates
which was subsequently announced early in August.
Valuations are starting to look more interesting following the recent correction,
particularly for the better quality industrials with International operations. We have
recently added Brambles to the portfolio and increased the funds investments in
Resmed and Westfield Holdings.
The portfolio held up relatively well in July as the short portfolio fell by 5%
contributed to overall performance. We were short building material companies-
James Hardie and Boral, both companies fell sharply on the back of ongoing
weakness in US housing activity; the fund was also short a number of Australian
manufacturers, including Bluescope Steel and Paperlinx which fell as these
companies are impacted by a higher Australian dollar.
Equity markets are unlikely to recover in a hurry as the full extend of losses in credit
markets emerge. Once investors gain comfort with the extent of these losses and
credit markets start to stabilise, International shares should move higher again in the
final quarter of the year.
DIVIDEND
The interim dividend of 4.0 cents a share fully franked was paid on the 27 April
2007.
OPTIONS ISSUE
On 11th August 2006, the Directors of Wilson Leaders Limited announced a 1 for 2
bonus issue of options to its shareholders. The options were allotted to shareholders
on 8th September 2006 and have been issued at no cost to shareholders. The
options have an exercise price of $1.08 per option and can be exercised any time up
until the expiry date of 31 October 2007.
As at the 13th August 8,046,900 options have been exercised for a total
consideration of $8,691,266.93 with a remaining balance of outstanding options
being 18,106,713.
The Board is focused on creating shareholder value. The Board believes that this
bonus option issue will promote this endeavour and will reward shareholders for their
loyalty and support for the Company.
PORTFOLIO PERFORMANCE
Gross Performance 1 month 3 month 6 month
Financial
YTD
Wilson Leaders Ltd -1.0%
3.9%
6.9%
-1.0%
All Ords Accum -1.9%
1.1%
9.4%
-1.9%
Relative Performance 0.9%
2.8%
-2.5%
0.9%
PORTFOLIO STRUCTURE
As at 30 June 2007 As at 31 July 2007
Investment Type $m
% of net
assets $m
% of net
assets
Listed Securities 115.21
128.8%
118.32
133.7%
Fixed interest and Cash
1.77
2.0%
-2.57
-2.9%
Gross Assets 116.98
130.8%
115.75
130.8%
Short positions -27.55
-30.8%
-27.23
-30.8%
Net Assets 89.43
100.0%
88.52
100.0%
The listed securities portfolio is detailed on the following page.
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