Listed managed investments - Earnings season kicks off

Claire Aitchison

Independent Investment Research

In the July edition of the IIR LMI Monthly, we review some of the key news events and shine a spotlight on WAM Global Limited (ASX: WGB), which has just ticked over its three-year anniversary since listing.  

Some of the key news items during the month include:

  • A number of companies announced their FY21 results during the month. Included in those was AFIC Limited (ASX: AFI) and Mirrabooka Investments Limited (ASX: MIR). AFI maintained the final dividend of 14 cents per share, fully franked, taking the full year dividend to 24 cents per share, fully franked, in line with FY20. MIR also maintained the final dividend of 6.5 cents per share, fully franked, as well as declaring a special dividend of 2 cents per share, fully franked.        
  • Magellan High Conviction Trust (ASX: MHH) announced its intention to transition from a Listed Investment Trust (LIT) to an Exchange Traded Managed Fund (ETMF). The structure will replicate the dual registry structure that a number of Magellan's funds operate under.  The market responded positively to the news with MHH previously trading at a discount, which is expected to be eradicated in the event the restructure is accepted by unitholders. 
  • WAM Leaders Limited (ASX:WLE) announced a pro-rata non-renounceable entitlement offer to raise up to $241.2m. Shareholders who participate in the offer will receive 1 new share for every 5 shares owned on the record date of 19 July 2021. Shares will be issued at a price of $1.44, equal to the pre-tax NTA as at 30 June 2021 and an 8% discount to the share price as at 12 July 2021. New shares issued will receive the fully franked final dividend of 3.5 cents per share. Shareholders also voted in favour of a buy-back of the 69.6% of shares owned by WAM at a price equal to the pre-tax NTA as at the close of 30 June 2021, less agreed transaction costs. The purchase price is subject to a possible adjustment based on the prevailing pre-tax NTA at the close of trade on 14 July 2021.   
  • CIE shareholders voted in favour of changing the name of the company to WCM Global Long Short Limited to reflect the new strategy of the company. The company now trades with the ticker WLS. 
  • WAM Strategic Value Limited (ASX: WAR) commenced trading on 28 June 2021 with the portfolio getting off to a good start with the merger proposal between WAM Global Limited (ASX: WGB) and Templeton Global Growth Limited (ASX: TGG) coupled with the announcement of the restructure of Magellan High Conviction Trust from a LIT to an ETMF. 

See all the details in the attached report.  

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1 contributor mentioned

Claire Aitchison
Head of Equities & Funds Research
Independent Investment Research
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