Ann: KBC: Proposed Off-Market T/O Bid for WAM Active, page-22

I did a comparison on CommSec. It was originally for WAM vs ARG. there was a 90% difference in share price over 10 years. ARG pays dividends and someone else worked out that even after WAM had paid dividends that were higher it didn't compensate for the share price difference and dividends so ARG performed better. A few red herrings were thrown in like ARG is too heavily weighted to banks - Not actually true as they are in fact lower than market weight banks.

WAA has the same issue as the numbers are virtually the same on the share price movement.

My opinion - I stress my opinion is that WAM pays high dividends and thus people think its a better investment then something like ARG ( Note I have no vested interest as we don't own ARG - we in fact own WLE but bought it when it was very low in 2020). It may not be as good if the capital growth pushes the share price up. I see it almost as if the W group of shares all seek to pay high dividends that make it hard for the share price to continually grow other than for it to hold at least NTA. So both WAM and WAA have only increased 35% and 6% respectively over the 10 year period. ARG has increased 94%. You do have to create an accumulation index for each by adding the dividend each year to get the total picture but it is unlikely to equal the differences over the 10 years.

I just think you can see their strategy by looking how they disclose how much they have they can pay out fully franked in each stock. That was what made me first look at it as I used to do that calculation myself on other LIC's as one I am invested in started paying unfranked dividends and that freaked me out as I was now paying tax on the distribution.

It does get confusing if you muddy the waters with options etc but I want a share and a simple equation. some of WAMS deals seem to be to get franking credits to pay dividends.