WAM Research

Wilson Asset Management - Webinar Presentation

About this Fund

Fund Detail

INVESTMENT STYLE WAX provides investors with exposure to a diversified portfolio of undervalued growth companies, which are generally small-to-medium sized industrial companies listed on the ASX.
INVESTMENT PROFILE WAX seeks to provide a rising stream of fully franked dividends and achieve a high real rate of return, comprising both income and capital growth, within acceptable risk parameters.
FEES 1.00% p.a.



Investment Philosophy

The investment philosophy of the Company is exemplified by the following broad principles:

  • The Company's philosophy is to buy and hold shares for medium to long term investment purposes.
  • The universe of potential investments for the Company will be all Securities quoted on the ASX or other exchanges, bills of exchange, other negotiable investments, debentures and other permitted investments identified in Section 2.9 of the Prospectus. The prime focus will be on listed entities that exhibit the investment characteristics outlined below. The Company believes a number of these entities will be found in medium sized industrial companies but size will not be a limiting factor for inclusion in the Company's Portfolio.
  • The Company's philosophy is to invest predominantly in industrial companies with an emphasis on companies that are under-researched and mispriced.
  • The Company's preference is to invest in industrial companies that have a proven track record of profit and dividends.
  • The Company will undertake investments on a portfolio basis. While all investments will be considered on a case-by-case basis, the Company will usually refrain from taking a majority position in investee entities unless the opportunity is compelling. This will assist the Company to diversify its investments and so reduce its exposure to abnormal falls in the market price of any single investment.
  • The Company believes it will achieve acceptable diversification by owning Securities in 30-50 investee entities.
  • The Company will seek to manage investment risk by spreading investments over a range of industry sectors.
  • The Company may invest in Securities quoted on a securities exchange located outside Australia if the Board considers that the reporting obligations and trading procedures applicable to that exchange are no less rigorous than those of ASX.
  • The Company will look to concentrate on absolute returns and preservation of capital.

The Directors consider that the investment philosophy outlined above is shared by the Manager.




Key Features

About the Fund

Wilson Investment Fund Limited is a company which has been formed to invest in a portfolio of permitted investments (see Section 2.9 of the Prospectus for details). The Company provides investors with the opportunity to invest in a medium to long term Portfolio and gain access to a defined investment process and the management experience of the management team of the Manager.

The Company will predominantly invest in ASX listed Securities. It is anticipated that the majority of the monies raised will be invested in Australian equities. The Company will take a medium to long term view with respect to its investments.

The Company will focus on active capital management which will involve buy-backs of its Shares when its Shares are trading at a sizeable discount to its net tangible asset backing and the issue of other securities through bonus issues, rights issues and option issues, with a view to enhancing the value of the Securities held by the investor. The Company will also maintain a dividend reinvestment plan. See Section 10.8 of the Prospectus for details.

The Company intends to manage its Portfolio with a view to building the number of entities represented in the Portfolio to a minimum of 30 stocks.

Investment Objectives

The 3 investment objectives of the Company are to:

  1. achieve a high real rate of return, comprising both income and capital growth, within risk parameters acceptable to the Directors;
  2. deliver investors a secure income stream in the form of fully franked dividends; and
  3. preserve the capital of the Company.


How we invest your money

The principal factors in determining the investment decisions of the Company are extensive. This may involve detailed discussion with management of the investee entity and its competitors.

Initially the Manager will identify a universe of stocks for investment by the Company. This involves considering relevant micro and macro economic factors and targeting under-researched companies.

Once a potential investment has been identified, the Manager will undertake extensive analysis. Publicly available information about the entity will be accessed and discussion with competitors undertaken where possible. The Manager will then meet with the potential investee company's management, discussing at length the various dynamics of the business, focusing on profit drivers.

The above strategy may be achieved through the purchase of shares or other permitted investments.

Permitted Investments

The Company proposes to invest in the following investments:

  • listed Securities, being any Security quoted on ASX and other markets including, without limitation, shares, units or notes which are redeemable, preference or deferred, fully or partly paid, with or without any right, title or interest thereto or therein (including a right to subscribe for or convert to any such Security whether listed on ASX or not), and any Security of whatsoever nature which the Manager expects will be quoted on ASX within a 12 month period from the date of investment;
  • listed Securities on any global stock market where the Security is also listed on the ASX;
  • warrants and options to purchase any investment and warrants and options to sell any investment which is a permitted investment;
  • discount or purchase of bills of exchange, promissory notes or other negotiable instruments accepted, drawn or endorsed by any bank, or by any corporation of at least an investment grade credit rating granted by a recognised credit rating agency in Australia;
  • debentures, unsecured notes and bonds of a corporation of at least an investment grade credit rating granted by a recognised credit rating agency in Australia;
  • units or other interests in cash management trusts; and
  • any other financial products with which the Manager may use in the management of the Portfolio in accordance with its Australian Financial Services Licence.

Under the Management Agreement, the Manager may only undertake investments in accordance with the above criteria.