I am also officially out of WAM though still hold WGB which I am...

I am also officially out of WAM though still hold WGB which I am slowly thinking to exit. I was a great believer/supporter of the WAM group until the two announcements (1) free options (which IMO was a fruitless disaster and showed lack of management vision) (2) initiation of WAR which sounded very arrogant to me (I believe that arrogance kills success).

Looking back I am starting to think may be its the departure of Chris and Geoff’s less involvement in the day to day activities was the key turning point with WAM group. Thats combined with continued poor performance of the fund (notably for me since the departure of Chris) and the popularity of ETF makes the whole LICs sector less attractive, made it even more challenging for WAM. Also I started to question if WAM couldn’t build good profit reserve in the recent bull market (I assume not that long ago we were in raging bull market) where the next profit/ reserve coming from especially if the general market is to enter the recession everyone talking about. Also I am thinking now that what if in the last few years we were buying dividends through acquisition and not actual fund performance. Any cut in the dividend here imo will be a disaster and i think and i couldn’t see where the next dividend is coming from..

IMO in the coming years most LICS may struggle, unless they reinvent themselves. I also believe LICS still has its place but not in the current old fashioned form.

anyway its in my best in that WAM become successful in the future and wish everyone involved all the best but personally for me i don’t see a good future here for now. I will still be watching with interest and may buy more if I see some sign of turning point in their approach but until then I am reducing and hopefully will be out completely soon.

all IMO please DYOR