Ann: December 2022 Investment Update, page-33

First 33 Last

Share
Profile

Follow
ClarkKent

10,266 Posts.

126

01/02/23

18:18

Post #: 66013391
Share

Originally posted by George89: ↑

The challenge for WAM and any listed investment company is share selection. I originally bought into WAM as I found it difficult to make much out of small and medium cap shares, and at that point WAM seemed to do it well. The reality is in any portfolio, you will have a couple of good winners, a larger portion of average returns and a few losers you need to move on from. Most of the profit is made from a the winners. But if you go for a couple of years of no good winners, the dividend pool disappears along with franking credits. So WAM then did a few take overs of other LICs trading below NTA to make some money and get some more franking credits. On paper they did ok out of these take overs, but the NTA is still deteriorating, telling us they cannot pick a winner. Fundamentally the share selection is not working, and some of the performance incentives for management such as performance bonuses for increasing market cap results in taking the LIC takeovers rather than fixing the share selection issues. Small and medium cap shares is a challenging area to trade in and it appears WAM is struggling with the basics since the covid impact. They need to change something in the share selection area. I hope they fix it as retirees have held WAM for a long time for the dividends, and they were the leaders for a while. My preference now is PL8 with monthly dividends, no performance incentives, and mainly large cap shares. WLE is probably a better prospect as well, and VHY is good as well. I hold PL8, VHY but not WLE.

George

Expand

* Isnt WLE brought to you by the same people as WAM ?

* Why PL8 and not ARG, AFI, AUI, DUI, BKI ? I dont like the fact that PL8 dont disclose their entire portfolio at June 30 like ARG do, for instance

* I got no problem with VHY

* Finally, I never quite understood the claim that WAM have delivered an average return 14.7% p.a. since inception (if you are prepared to ignore expenses, fees, taxes and capital management initiatives). What does that even mean?

* Anyone interested in calculating the real performance of WAM since inception in 1999 from a shareholder perspective? It would be a nice collaborative exercise and we could all learn a thing or two.

Last edited by ClarkKent: 01/02/23

WAM Price at posting: $1.49 Sentiment: None Disclosure: Not Held
6 Upvote

0 Great analysis

Reply

Top Stories

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

What's causing the cost-of-living crisis, and how to navigate it

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

M4M

Macro, Norden set up transport solutions initiative for West Pilbara