Wilson Asset Management to launch new LIC

Wilson Asset Management is set to launch an eight Listed Investment Company (LIC) in 2021 – WAM Strategic Value. Here's what we know

| More on:
A share market investment manager monitors share price movements on his mobile phone and laptop

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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. 

Motley Fool contributor Sebastian Bowen owns shares of WAM Research Limited and WAMGLOBAL FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

asx share price boosted by us investment represented by hand waving US flag across winning athlete
Best Shares

Here are the best-performing ASX 200 shares since the US election result

We reveal the 10 ASX stocks that have had the highest share price gains since the US Presidential election.

Read more »

A young man sits at his desk working on his laptop with a big smile on his face due to his ASX shares going up and in particular the Computershare share price
Share Market News

5 things to watch on the ASX 200 on Friday

A decent finish to the week is expected for Aussie investors.

Read more »

A smiling man at a shop counter takes payment from a female customer, with racks of plants in the background.
Best Shares

Here's why I think Wesfarmers shares are a great buy for any ASX investor

I argue that Wesfarmers offers investors both growth and income potential.

Read more »

A golfer celebrates a good shot at the tee, indicating success.
Share Market News

Here are the top 10 ASX 200 shares today

ASX investors finally enjoyed a win this Thursday...

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Industrials Shares

Up 39% in a year, is there more growth to come for this ASX 200 share?

IML Equity Analyst Josh Freiman shares his views on a major ASX 200 industrial stock.

Read more »

Man looking at his grocery receipt, symbolising inflation.
Share Market News

What the latest US inflation print means for ASX 200 investors

The ASX 200 is likely to benefit if the US Fed cuts interest rates again in December. But will it?

Read more »

guy helping girl invest in shares and dividends
Opinions

5 ways for investors buying ASX shares to stay focused during economic uncertainty

AMP Chief Economist, Dr Shane Oliver, offers advice on how to handle the Trump factor.

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Graincorp, Light & Wonder, Orica, and Wildcat shares are falling today

These shares are having a tough time on Thursday. But why?

Read more »