Category: LICs

LICs are a great way to achieve market diversification or invest conservatively for those investors without the expertise or inclination to invest directly in other ASX listed companies. LICs in Australia primarily invest in Australian or international shares and offer investors exposure to the same universe of assets that can be accessed through many unlisted managed funds. LICs are bought and sold on the market just like an ordinary share and investors can decide whether the investment style and underlying investment portfolio of a particular LIC suits their own investment objective

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LICs LICs

PGF Dividend Uplift Offers Attractive Yield

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Last trade price of PM Capital is A$ 1.49. Their Outstanding shares is 390.11 Million. PGF’s provides Public Float which is 279.25 Million. PM Capital Global Earnings Per Share (EPS) is $0.415 while the Price Earning ratio is 3.59 percent. 

Currently, PM Capital’s Annual Yield is 5.03 percent while their Annual revenue TTM is $218.56 Million.

On 24th September 2021, Net Tangible Asset backing per ordinary share before tax accruals is $1.63 while NTA after tax is $1.47. Gross Dividend yield per annum is 9.6 percent.  

The Company also announced that due to its strong profits reserve position, it intends to maintain a minimum dividend of 5.0cps for both the interim and final dividend for FY22, representing a full year FY22 dividend of at least 10cps. As at 30 June 2021, the Company has 5 years dividend coverage at 10cps.

On 12 August 2021, PM Capital Global Opportunities Fund ((PGF)) announced a final dividend for FY21 of 5.0cps, fully franked, a 100% increase on the FY20 final dividend.

The increased dividend announcement represents a significant uplift in yield. Based on the share price at the close of 19 August 2021, the full year dividend declared for FY21 represented a dividend yield of 4.8%. The forecast FY22 dividend would represent a yield of 6.4%, fully franked, which is strong for a global equity focused LIC.

Company Profile 

PM Capital Global Opportunities Fund Ltd. engages in investing in a portfolio of listed securities across global securities markets. Its investment objective is to increase the value of its portfolio by providing long term capital growth. The company was founded on October 1, 2013 and is headquartered in Sydney, Australia.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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LICs LICs

Metrics Income Seeks to Raise up to $152m through Institutional Placement and Unit Purchase Plan

Currently, their Annual Yield is 6.98 percent and their dividend amount is 0.009. Metrics Income’s P/E Ratio is 13.8 percent. 

Metrics Income Opportunities Trust’s Revenue is 30.70 million till June 2021. Their last traded price is $2.05. The trust targets a cash yield of 7 percent p.a. which is intended to be paid monthly with a total target return of 8 percent p.a to 10 percent p.a in each case net of fees and expenses.

Their Net Asset Value is $407,156,629. Metrics Income Opportunities Trust ((MOT)) announced on August 26, 2021, that they intend to raise $52.86 million by issuing 26.04 million new fully paid ordinary MOT units to wholesale investors at a price of $2.03 per unit. 

Furthermore, the Trust announced a Unit Purchase Plan (UPP) for existing eligible unit holders to purchase up to $30,000 in new units at a price of $2.03. The Trust hopes to raise up to $100 million through the UPP. Excessive applications may be scaled back on a pro rata basis. The UPP is set to open on September 6, 2021, and close on September 30, 2021.

The offer price of $2.03 corresponds to the NAV at the time of the announcement, with the UPP allowing unit holders to acquire units at a 1.9 percent discount to the unit price at the close of the trading day preceding the announcement (25 August 2021).

The proceeds from the institutional placement and the UPP will be invested in accordance with MOT’s investment mandate and target return.

Company Profile 

Metrics Income Opportunities Trust seeks to provide investors exposure to a portfolio of private credit investments. The Investment Objective of the Trust is to provide monthly cash income, preserve investor capital and manage investment risks, while seeking to provide potential for upside gains through investments in private credit and other assets such as Warrants, Options, Preference Shares and Equity.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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LICs LICs

Sandon Capital Declares Special Dividend and Further Aligns Interest with Shareholders

Market Capitalisation of Sandon Capital Investments Limited $111.99 Million. Their last trade was 1.01 on 22nd September 2021.

Net profit is 37.3 Million. Their Annual Revenue is 56.5 Million. 

Sandon Capital Investments Limited (SCN) has declared a fully franked special dividend of 1cps in addition to the full franked FY21 final dividend of 2.75cps. 

The Board anticipates paying an interim FY22 dividend of 2.75cps, fully franked, subject to the Company having sufficient profit reserves, franking credits and it is within prudent business practices. 

This would represent a 10% increase on the FY21 interim dividend. SNC currently has 32.1cps in profits reserves and more than 9cps in franking credits.

In addition to this, the Manager announced that from FY22 onwards, the Manager intends to invest at least 50% of the after-tax proceeds of performance fees earned from SNC in SNC shares. 

Shares will be purchased on-market and will be acquired after the payment of the relevant performance fee where SNC’s share price is trading at a discount to its after-tax NTA. 

The Manager and entities associated with its directors and shareholders currently have in excess of $7.3m invested in funds managed by Sandon Capital Pty Ltd, including 2.1m SNC shares.

Company Profile 

Sandon Capital Investments Limited is an investment company. The Company is engaged in investing activities, including tangible assets, marketable securities or cash. The Company will seek to invest in securities, which Sandon Capital Pty Ltd (the Manager) considers to be under-valued and where the Manager considers there to be opportunity to encourage changes to unlock what the Manager has identified as intrinsic value. The Manager may also invest, from time to time, in market-based investment opportunities, such as placements, merger arbitrage and other investments it considers appropriate. Sandon Capital Pty Ltd is the investment manager of the Company.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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LICs LICs

WCM Global Growth Increases Final Dividend 25%

Recently, WAM Global Growth provides 2.5 percent per share. 

WCM Global Growth Limited ((WQG)) reported a net operating profit after tax of $48.4 million for fiscal year 21. For FY21, the investment portfolio returned 26.8 percent, with total shareholder returns of 35.6 percent.

The Company declared a final dividend of 2.5cps for FY21, fully franked, a 25% increase over the FY20 final dividend. This represents a 4.5cps full-year dividend, a 12.5 percent increase over the FY20 full-year dividend.

The Board has announced that the next two dividend payments will be increased, with an FY22 interim dividend of 2.75cps and a final FY22 dividend of 3.0cps. These dividends will most likely be fully franked. The increased dividends will be subject to corporate, legal, and regulatory considerations, as well as the Company having sufficient profit reserves and franking credits.

WQG issued Bonus Options on a one-for-three basis in February 2021. The options have an exercise price of $1.50, which represents a 7.4 percent discount to the closing share price on August 19, 2021. The exercise period for the options is until August 31, 2022. 

Shareholders who exercise their options by COB 17 September 2021 and continue to hold the shares on the relevant record date will be eligible for all of the dividends listed above.

Company Profile 

WCM Global Growth Limited (WQG or the Company) is a listed investment company investing in global equities. The Company provides investors with access to an actively managed portfolio of quality global companies found primarily in the high growth consumer, technology and healthcare sectors. The portfolio is managed by WCM Investment Management (WCM), a California-based specialist global equity firm with an outstanding long-term investment track record. WCM’s investment process is based on the belief that corporate culture is the biggest influence on a company’s ability to grow its competitive advantage or ‘moat’. 

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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LICs LICs

Wilson Asset Management Reports Record Operating Profit and Maintains Final Dividend

Currently, last traded price is $2.345. Till June 2021 net profit is 266.62 Million while Revenue is 379.57 Million.

Till 31 July 2021, Pre – tax net tangible asset is $1.89 while post – tax net tangible asset is $1.93 and Annualised dividend yield is 7 percent.

Gross asset of Wilson Asset Management Capital Limited is 1,682.2 Million.

WAM Capital’s Investment portfolio has returned 16.6 percent p.a and their overall 22 years outperforming the market by 7.9 percent p.a.

WAM Capital Limited ((WAM)) reported a record operating profit before tax of $343.3 million for fiscal year 21 due to strong portfolio performance. In FY21, WAM’s investment portfolio increased 37.5 percent (before expenses, fees, and taxes). 

The final dividend was maintained at 7.75cps, fully franked, bringing the full year dividend to 15.5cps, fully franked. This is consistent with the full-year dividend for fiscal year 2020.

WAM offered the most appealing dividend yield for domestic equity LICs as of 31 July 2021, with a dividend yield of 7.01 percent despite trading at an 11.6 percent premium.

Company Profile 

WAM Capital Limited (WAM) is an Australia-based investment company, which is primarily an investor in equities listed on the Australian Securities Exchange. The Company’s investment objectives are to deliver a stream of fully franked dividends, provide capital growth and preserve capital. The Company engages in investing activities, including cash, term deposits and equity investments. The Company’s trading opportunities are derived from initial public offerings, placements, block trades, rights issues, corporate transactions (such as takeovers, mergers, schemes of arrangement, corporate spinoffs and restructures), arbitrage opportunities, listed investment companies (LIC) discount arbitrages, short selling and trading market themes and trends. Wilson Asset Management (International) Pty Limited is the Company’s investment manager.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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LICs LICs

WAM Strategic Value Limited Commences Trading

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There Pre – Net Tax Tangible Assets is $1.27 till June 2021. IPO price is $1.25 on 28th June 2021.

Till now, there is no Dividend history for WAM Strategic Value.

WAM Strategic Value Limited ((WAR)) date of listing on ASX on June 28, 2021, at a price of $1.25 per share with 180 million shares on issue.

Following the merger proposal with WAM Global Limited ((WGB)), the portfolio increased following the IPO, with Templeton Global Growth Fund Limited ((TGG)) being a positive contributor. 

TGG shareholders can choose between receiving WGB stock consideration with an attaching option or cash consideration equal to the NTA after tax and transaction charges under the terms of the offer.

The announcement of MHH’s reorganisation from a LIT to an ETMF would have given the portfolio a lift as well, with the MHH unit price reacting positively to the news.

Company Profile 

WAM Strategic Value Ltd is an investment company. Its investment objectives are to provide capital growth over the medium-to-long term, deliver a stream of dividends and preserve capital while providing shareholders with exposure to a diversified equities portfolio.

(Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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LICs LICs

Mirrabooka Investments Maintains Its Final Dividend & Declares A Special Dividend

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Mirrabooka Investments Ltd (ASX: MIR) declared a final dividend of 6.5 cents per share, fully franked, for FY21, in line with the preceding final dividend.

In addition to the final dividend, the company declared a special dividend of 2 cents per share, fully franked, bringing the total dividends for FY21 to 12 cents per share.

The full dividend (final and special) will be collected from capital gains on which the Company is or will be taxed. 

The pre-tax attributable gain (“LIC capital gain”) associated with the dividend is 12.14 cents.

The dividend will trade ex-dividend on July 28, 2021, and will be paid on August 17, 2021.

Mirrabooka Investments Ltd NTA (NET TANGIBLE ASSETS) per share is currently marked at $2.96, dividend yield at 2.40% and PE at 106.92 for the year 2021. 

The current price is $4.16 per share of Mirrabooka investments Ltd.

Company Profile

Mirrabooka Investments Ltd (ASX: MIR) was founded in 1980 by Mr. Robert Mark Freeman and is an Australian based company. Mirrabooka Investments Ltd is a publicly traded investment company that focuses on small and medium-sized businesses in Australia and New Zealand. The company has been in operation since April 1999 and debuted on the ASX on June 28, 2001. Mirrabooka seeks to offer shareholders with medium- to long-term benefits, including strong dividend yields, by making core investments in chosen small and mid-sized businesses. It invests in 50-70 companies outside of the S&P/ASX 50 Leaders Index. 

 (Source: FactSet)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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LICs LICs

Australian Foundation Investment Company (ASX: AFI) Reports FY21 Earnings & Maintains Final Dividend

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The portfolio’s dividends and distributions remained basically constant from the pcp, with the revenue fall driven entirely by a decrease in interest income from deposits.

The Company’s pre-tax NTA per share climbed to $7.45 per share at the end of June 2021, before accounting for the final dividend. This represents a 25% increase above the pre-tax NTA as of 30 June 2020.

In keeping with the FY20 final dividend, the Company declared a final fully franked dividend of 14 cents per share. The full-year dividend will be 24 cents per share, fully franked, which is the same as the full-year dividend in FY20.

The dividend paid as on 31st august is expected to be 14 cents. The current P/E is marked at 58.10 and dividend yield at 2.81%

During this time, the Company dabbled in international stocks by investing a modest portion of its capital (0.5 percent of the portfolio) in an i-”-nternational equities portfolio. (

The worldwide portfolio includes of high-quality companies with a significant competitive advantage, good growth prospects, and a diverse range of industries, as determined by the investment team.

Company profile

Australian Foundation Investment Company (ASX: AFI) is Australia’s largest life insurance company, and it has been investing in Australian and New Zealand equities since 1928. The Date of Listing of Australian Foundation Investment Company (ASX: AFI) is 30 Jun 1962. Incorporated in VIC as Were’s Investment Trust Ltd on 13/07/1928; name changed to Australian Foundation Investment Company Ltd on 25/10/1937. Australian Foundation Investment Company (AFIC) is a closed-end investment corporation. The firm focuses in Australian stock investments. The Company’s investment goal is to provide investors with investment returns in the form of steam franked dividends and capital appreciation. 

(Source: FactSet)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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LICs LICs

Geoff Wilson claims first victory in his new LIC WAR

Wilson was in the United States on business when he began seeing Templeton reported as suggesting that now was the moment to invest 10% of your income in stocks, rather than avoiding them.

The chairman of the Wilson Asset Management listed investment company (LIC) empire says he’s a little sad to see the Templeton brand fade away from the ASX boards, 34 years after it first appeared in the 1987 upheaval.

But it’s not all bad: he’s basically buying out the Templeton Global Growth Fund, which will merge with Wilson’s WAM Global LIC.

Wilson has been following TGG since 2015, when WAM first purchased shares in the LIC, and has slowly raised its holdings to 14.6 percent.

The investment was transferred to the new WAM Strategic Value LIC, which debuted on 26 July and trades under the symbol WAR. The new LIC aspires to boost returns by assisting under-appreciated LICs in closing the gap between their net tangible asset values and share prices.

Wilson claims that WAM has been working with the TGG board for some time on strategies to close the gap between its stock price and NTA’s, including appointing an independent person to the board. TGG launched a strategic assessment of its structure late last year, and while Wilson claims WAM was startled by the board’s decision, WAM hasn’t been sitting on its hands.

For the first time in seven years, TGG investors will be able to withdraw money from NTA. However, if TGG investors chose WAM Global stock, Wilson’s LIC’s assets will increase by around $300 million, putting it among the largest LICs focusing on overseas shares on the ASX and putting it on the radar of additional investors and financial advisors.

Wilson’s WAM Global, which went public in 2018, was a work in progress. While it still trades at a 6.4 percent discount to NTA – one of the few WAM LICs to do so – the spread has decreased in the last two years, and Wilson is hoping that increased scale will help WAM Global break through.

(Source: Fact Set)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.