Wilson Asset Management (WAM) is one of the largest fund managers on the ASX. It has been growing its stable of Listed Investment Companies (LICs), which now number eight, for more than 20 years.
One of WAM's newer ASX LICs is WAM Microcap Ltd (ASX: WMI). WAM Microcap is the only WAM LIC that offers the smaller end of the ASX, focusing on ASX shares with a market capitalisation of less than $300 million. Its management looks for undervalued companies in this space. They are selected to help this LIC's goal of providing medium-to-long-term capital growth and a growing steam of fully franked dividends.
This it has been doing rather successfully. According to WAM, WAM Microcap has averaged a performance of 25.2% per annum (before fees and taxes) since its inception in mid-2017. At the present share price, its dividend yield (including its regular special dividends) is sitting at 6.32% (or 9.03% grossed-up with full franking).
What are WAM Microcap's current ASX holdings?
So if you own WAM Microcap shares, which ASX shares are you invested in exactly? Well, WAM's latest ASX monthly update gives us a look.
According to the fund's October update, some of its top 20 holdings include Ardent Leisure Group Ltd (ASX: ALG), Praemium Ltd (ASX: PPS) and Janison Education Group Ltd (ASX: JAN). As well as McGrath Ltd (ASX: MEA), Superloop Ltd (ASX: SLC), Silk Logistics Holdings Ltd (ASX: SLH) and Tuas Ltd (ASX: TUA).
WAM tells us that some of its best ASX performers over October were Praemium and Superloop.
WAM Microcap noted Praemium's recent September quarterly update, which had the company record a record inflow of $1.7 billion for the quarter. That was a 37% increase over the previous quarter. It also points to the proposed merger with Netwealth, which WAM reckons will "create substantial value for Praemium shareholders".
With Superloop, WAM likes the company's recently announced sale of its Hong Kong and Singaporean assets for $140 million. This, management estimates, will allow Superloop to "redeploy the proceeds derived from the sale into accretive acquisitions or capital management initiatives".
WAM Microcap charges an annual management fee of 1% per annum, along with an ASX performance fee of 20%.
