WAM Global Limited (ASX: WGB) is currently one of the largest holdings in my portfolio.
It's a listed investment company that aims to replicate the strategy of WAM Capital Limited (ASX: WAM) by investing in small to medium cap businesses. The main difference is that WAM Global invests in internationally-listed shares, if you couldn't already guess by the name.
Only 2% of the world's businesses are listed in Australia – there are some great opportunities outside of the ASX.
'Small' and medium cap overseas businesses are actually large by ASX standards. Some of WAM Global's biggest holdings include American Express, Danone, Diageo, HCA Healthcare, Logitech and Reckitt Benckiser.
WAM Global is also using the strategy of holding a high proportion of its portfolio as cash for protection and opportunities. At the end of November 2018, 29.4% of the WAM Global portfolio was cash.
Despite all the volatility since June 2018, WAM Global's post-tax net tangible assets (NTA) is down by only around 5%.
Foolish takeaway
I believe that WAM Global will be able to achieve attractive net returns after fees over the long-term because of how much wider its investment universe is compared to the ASX. I think most Aussie investors need more exposure to overseas-listed shares.
At some point WAM Global will start paying a dividend. Wilson Asset Management likes to steadily grow the dividends of its LICs.
Over the next decade or two WAM Global could turn out to be one of the most reliable dividend payer as it doesn't rely on the ASX or the Australian economy as much as the other WAM LICs.
