I believe a major problem is that the number of shares on issue has risen dramatically as a result of takeovers.
This mean that WAM has to buy larger percentages of company shares to accommodate the need for larger profits for dividends to be distributed over more shares.
When buying a larger percentage of a company, the share price can be forced up while buying as opposed to buying a smaller percentage at the best possible price. This means the margin of profit can be reduced by having to buy too many shares in a company.
The larger the portfolio, the harder it is to increase your percentage of profit.
WMI, on the other hand has a lot fewer shares than WAM & consequently, should be able to increase it's profit percentage more easily.
Dividends, page-54
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