WAM Global Limited (ASX:WGB) is a Listed Investment Company (LIC) trading on the Australian Stock Exchange. Wilson Asset Management (WAM) was founded by Geoff Wilson 20 years ago, and has been successfully managing Listed Investment Companies ever since.
WAM Global’s Investment Strategy & Track Record
WAM Global aims to invest in undervalued international growth companies using Wilson Asset Management’s established and historically successful investment processes.
WAM Global has been running for less than a year, so it is difficult to assess its performance at this time. Since listing in June last year, its after tax Net Tangible Asset value per share is essentially unchanged (current NTA after tax of $2.253 vs. initial NTA after tax of $2.20). I strongly agree with the disclaimer stated in WAM Global’s prospectus that “investors are strongly advised to regard any investment in the Company as a medium-to-long term proposition (more than five years) and to be aware that, as with any equity investment, substantial fluctuations in the value of their investment may occur over that period and beyond”.
To get a better long term picture of how the investment strategy might perform, we can look at the returns achieved by WAM Capital Limited (ASX:WAM) , a LIC managed by Wilson Asset Management since 1999. WAM Capital has invested predominately in small to mid-cap Australian companies and has delivered a return of 16.8% per annum since 1999, greatly outperforming the 8.4% per annum achieved by the S&P/All Ordinaries Accumulation Index.
Is Now A Good Time To Invest In WAM Global Shares?
As at April 30 2019, WGB’s reported post-tax net tangible assets (NTA) were $2.253 per share. Based upon the share price at time of writing, $1.95, this represents a discount to post-tax NTA of about 13%.
Geoff Wilson, Wilson Asset Management founder and WAM Global director, has accumulated shares this month (as recently as yesterday). Clearly he believes the discount to NTA offers value, and I agree with him.
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Disclosure: At the time of writing, William owns shares in WAM Global Limited
