Wilson Asset Management (WAM) is well known for its stable of listed investment companies (LICs). Over the past two decades, WAM has gone from offering one flagship LIC — WAM Capital Limited (ASX: WAM), established in 1999 — to seven. Its most recently launched LIC was Wam Alternative Assets Ltd (ASX: WMA). WAM Alternative Assets debuted last year after WAM purchased the embattled Blue Sky Alternative Assets LIC.
Before that, WAM Launched Wam Global Ltd (ASX: WGB) back in 2018. At the time, WAM Global was the first WAM LIC to have a mandate to invest in companies beyond the ASX.
But today, we have confirmation that an eighth LIC will join the Wilson Asset Management stable.
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WAM Strategic Value to launch next month
A report in the Australian Financial Review (AFR) this week unveiled the newest LIC as 'WAM Strategic Value'. And in an email to investors yesterday, WAM has confirmed the accuracy of the AFR report.
The new LIC will be headed by WAM founder Geoff Wilson himself as lead portfolio manager. That's a role that is typically delegated in other WAM LICs. WAM Strategic Value looks set to IPO on the ASX next month or two. A prospectus is to be released in "early May".
This LIC will depart from the ASX share value investing strategy of most of WAM's other LICs. Here's what WAM described the new LIC's mandate as:
WAM Strategic Value will focus on identifying and capitalising on share price discounts to underlying asset values of listed companies, primarily listed investment companies (LICs), listed investment trusts (LITs) and other closed-end investment vehicles.
The AFR report argues this could be a fertile hunting ground for WAM. That's because there are dozens of LICs on the ASX that are currently trading for less than the value of their net tangible assets. It's also a strategy WAM has incorporated into its largest LIC, WAM Capital.
Over the past year, WAM Capital made moves to purchase both the Concentrated Leaders Fund (ASX: CLF) and the Contango Income Generator (ASX: CIE). Clearly, the company thinks it is onto a winning strategy here.
