I was fortunate enough to be able to catch the bi-annual Wilson Asset Management (WAM) investor conference call yesterday. In these calls, the WAM team, including founder Geoff Wilson, gives investors updates on WAM Listed Investment Companies (LICs), some commentary on the state of the economy and markets as well as taking questions from investors.
WAM Global is the only WAM LIC that aims to invest beyond our shores. Its also the newest kid on the block, only launching last year. I think that the company’s investment strategy that has enabled WAM’s flagship LIC WAM Capital Ltd (ASX: WAM) to produce returns of 16.8% on average since 1999 is a perfect one to bring to world markets through WAM Global. Although its focus is on small- to mid-cap companies, it also holds larger stocks like American Express Co. and Diageo. I was fortunate enough to be able to enquire about this to portfolio manager Catriona Burns yesterday, who informed me that their strategy doesn’t rule out larger-cap companies if they see significant upside.
I already own shares in WAM Global, and I hope to buy more in the near future. If you’re looking for an easy way to get exposure to some of the best businesses around the world, this LIC is a great option, in my view.
WAM Microcap invests in the riskiest part of the ASX spectrum, which I think is out of most investors’ reach. Therefore, WAM Microcap might be a great place to put some cash if you don’t want to touch the small stuff yourself. In the conference call, Geoff Wilson talked about how they can’t actually allow this LIC to grow too large, as it would handicap its ability to invest in the microcap area. Therefore, you can expect to see a lot of special (and fully-franked) dividends being paid out instead, which is another reason to like this LIC. WMI has delivered a return of 21.1% since launching, including a trailing dividend yield of 3.2%.
I think WAM’s stable of LICs offers some of the best active management on the ASX today. There’s an option for everyone, and income investors, in particular, might want to delve a little deeper into what WAM has to offer.
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Motley Fool contributor Sebastian Bowen owns shares of WAMGLOBAL FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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