Unlike the previous two examples, WMA does not invest in listed equities. Instead, WMA owns alternative assets including water rights, private equity, agriculture and some real estate. This provides a different risk/reward profile and may help to diversify investment portfolios.WMA declared a dividend of 2 cents recently and stated they intend to copy that for the next dividend. Based on the 31 August NTA of $1.17 it reflects a 3.4% net dividend yield and 4.6% grossed up for franking credits. The closing share price was $1.03, with a 3.9% net yield and 5.2% grossed up for franking credits.At the end of August, WMA was trading at a 12% discount to NTA. Under the management agreement, if WMA does not trade at a premium to NTA at various time during the initial 5 year period, shareholders will have an opportunity to vote to wind up the LIC and return the proceeds to investors. This provides a clear catalyst for management to close the share price/NTA gap over the next few years, adding some potential further upside for investors.
WMA Price at posting:
$1.03 Sentiment: Hold Disclosure: Held
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