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Wilson sees asset boost after merger

Rachael Micallef  |  19 Feb 2013Text size  Decrease  Increase  |  

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Rachael Micallef is a journalist with InvestorDaily, a Sterling publication.


Wilson Asset Management (WAM) has announced a lift in net assets on the back of its merger with Premium Investors.

WAM Capital (WAM) increased its net assets to $296 million and its shareholder base to more than 7800 in the six months to 31 December, due to its merger with Premium in December and increased investor demand.

"WAM Capital has successfully grown from increased investor demand through the oversubscribed placement in August with $37 million funds raised," WAM chief executive Kate Thorley said.

"During the half year we also completed a merger with Premium, with 65 per cent of Premium shareholders becoming WAM Capital shareholders.

"WAM Capital is now a sizable listed investment company, making it more relevant in the market and we are already experiencing increased coverage by brokers and research houses."

WAM Capital's operating profit before tax for the half year ending 31 December reached $31,763,792, increasing from a 2011 operating loss before tax of $5,232,002, as result of WAM's portfolio returning 14.1 per cent.

WAM Capital's portfolio had an average equity weighting of 66.2 per cent over the results period, and provided a return of 21.7 per cent over the full year.

"The more buoyant equity market has been providing some exceptional opportunities to deliver solid risk-adjusted returns for our shareholders," WAM Capital chairman Geoff Wilson said.

"WAM Capital is well-positioned to make the most of these improving market conditions with its increased capital base."

The company's operating profit after tax reached $25,065,051, up from a loss of $2,568,053 previously.

On the back of its increase in growth, WAM said it will pay shareholders a fully franked dividend of 6 cents a share.