WAM Research Limited
Overview
| LIC Name | WAM Research Limited |
| ASX Ticker | WAX |
| Listing Year | 2003 (20 years operating) |
| Size (Market Cap) | $249M |
| Investment Focus | Australian Equities |
| Portfolio Bias | Mid & Small Cap |
| Benchmark | S&P/ASX All Ordinaries Accumulation Index |
| Management Structure | Externally Managed |
| Investment Manager | MAM Pty Limited (part of the Wilson Asset Management Group) |
| Management Fee Structure | 1.00% plus GST |
| Performance Fee Structure | 20% plus GST |
| Cost Indicator (FY23) | 1.38% (excluding Performance Fees) |
| Objective | 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. The investment objectives of the company are to provide a stream of fully franked dividends and achieve a high real rate of return, comprising both income and capital growth, within acceptable risk parameters. |
| Objective | |
| 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. The investment objectives of the company are to provide a stream of fully franked dividends and achieve a high real rate of return, comprising both income and capital growth, within acceptable risk parameters. |
|
| Recent Annual Reports | 2023, 2022, 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014 |
Key Personnel
Board Members
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Geoff Wilson AO
Chairman - Non-independent
Joined WAX: 2003
Shares Owned: 120K
Share Value: $135K
*Share data from 2023 Annual Report
Chairman of the Board.<br><br>Geoff Wilson has over 43 years' direct experience in investment markets having held a variety of senior investment roles in Australia, the UK and the US. Geoff founded Wilson Asset Management in 1997 and created ...
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Julian Gosse
Director - Independent
Joined WAX: 2003
Shares Owned: 0
Share Value: $0
*Share data from 2023 Annual Report
Member of the Audit and Risk Committee. <br><br>Julian Gosse has spent the last 25 years of his career working as a Professional Director of Public Companies. Prior to that he was involved in the stockbroking, merchant banking and venture capital ...
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John Abernethy
Director - Independent
Joined WAX: 2003
Shares Owned: 10K
Share Value: $11K
*Share data from 2023 Annual Report
Chairman of the Audit and Risk Committee. <br><br>John Abernethy has over 40 years' experience in funds management and corporate advisory. He spent ten years at NRMA Investments as Head of Equities. In 1994 he joined Poynton Corporate Limited as ...
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Kate Thorley
Director - Non-independent
Joined WAX: 2014
Shares Owned: 68K
Share Value: $77K
*Share data from 2023 Annual Report
Member of the Audit and Risk Committee.<br><br>Kate Thorley has over 18 years' experience in the funds management industry and more than 24 years of financial accounting and corporate governance experience. Kate is the Chief Executive Officer of ...
Investment Management
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Tobias Yao
Portfolio Manager
Joined WAX: 2014
Tobias joined Wilson Asset Management in 2014 and works within WAM Capital, WAM Microcap, WAM Research and WAM Active. Tobias has over 13 years' experience in the investment industry. Prior to this he spent five years as an investment analyst at ...
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Oscar Oberg
Lead Portfolio Manager
Joined WAX: 2016
Oscar has more than 14 years' experience in financial markets. Before joining Wilson Asset Management, Oscar worked as a sell-side analyst at CLSA and three years at Grant Thornton working in transaction advisory services. Oscar is the Lead ...
Shareholders & Portfolio Size
Number of Shareholders
Portfolio Size
Portfolio Holdings
Top 10 Holdings at end of FY 2023
Performance
Historical Performance
| Updated: February 2024 | 1yr | 3yrs | 5yrs | 10yrs |
|---|---|---|---|---|
| With Dividends Reinvested - Net | -4.6% | -5.0% | 3.0% | 6.8% |
| With Dividends Reinvested - Gross | -1.9% | -2.4% | 6.0% | 9.8% |
Chart of Historical Performance
Dividends
Dividend History
| Payment Date | Dividend Type | Dividend Amount | Franking Level |
|---|---|---|---|
| 16 Oct, 2023 | Final | $0.05 | 60% |
| 21 Apr, 2023 | Interim | $0.05 | 100% |
| 17 Oct, 2022 | Final | $0.05 | 100% |
| 14 Apr, 2022 | Interim | $0.05 | 100% |
| 22 Oct, 2021 | Final | $0.0495 | 100% |
| 20 Apr, 2021 | Interim | $0.0495 | 100% |
| 23 Oct, 2020 | Final | $0.049 | 100% |
| 21 Apr, 2020 | Interim | $0.049 | 100% |
| 18 Oct, 2019 | Final | $0.0485 | 100% |
| 26 Apr, 2019 | Interim | $0.0485 | 100% |
Chart of Dividend History
Corresponding Dividend Yields
Dividend Comparison
Costs
Cost Indicator (%)
Actual Costs
Share Price vs NTA
Some Common Questions about WAX
WAM Research Limited (ticker: WAX) is an Australian Listed Investment Company (LIC) that primarily focuses on Australian equities. The company has a market capitalisation of approximately $200 million. The company was listed on the Australian Stock Exchange (ASX) on August 19, 2003, and it has been operating for 20 years. WAX specialises in investing in mid and small-cap industrial companies listed on the ASX.
The investment objective of WAM Research Limited (WAX) is to provide investors with exposure to a diversified portfolio of undervalued growth companies, particularly small-to-medium-sized industrial companies listed on the ASX. Additionally, WAX strives to offer a stream of fully franked dividends to its shareholders and achieve a high real rate of return, which encompasses both income and capital growth.
WAM Research Limited (WAX) is an investment vehicle that falls within the category of Australian equities, primarily focusing on mid and small-cap industrial companies. To make an informed investment decision, it's crucial to evaluate several key metrics that pertain to WAX's performance and suitability for your investment goals:
- Long-term Performance: Examine WAX's historical performance over a significant period, ideally 5 years or more. Assess whether the company has consistently delivered returns that meet or exceed its benchmark, which, in this case, is the S&P/ASX All Ordinaries Accumulation Index. This evaluation can provide insights into WAX's ability to generate competitive returns over time.
- Dividend Reliability: Investigate WAX's track record concerning dividends. Determine whether the company has maintained a history of providing fully franked dividends to shareholders. Reliable dividends can be an essential source of income for investors.
- Underlying Holdings: Understand the composition of WAX's portfolio. As an LIC, WAX invests in a diverse range of assets, with a focus on small and medium-sized industrial companies listed on the ASX. You can find detailed information about its holdings in its regular updates or annual reports. Ensure that the investments align with your financial objectives and risk tolerance.
- Fees: Assess the cost associated with investing in WAX. This includes management fees and performance fees. The Management Expense Ratio (MER) can be a useful metric, as it reveals the fund's overall expenses relative to its net tangible assets. For LICs on the ASX, MER can vary, and it's important to consider the impact of fees on your investment returns. WAX has a calculated MER of 1.55% in the most recent financial year, which should be taken into account when evaluating the investment's cost-effectiveness.
A Listed Investment Company (LIC) is one type of investment fund structure (i.e. shareholder funds pooled together and invested together, either actively by a manager, or passively). Other types of investment funds include Exchange Traded Funds (ETFs) (which can be both actively managed or passive), Listed Investment Trusts, or Managed Funds.
The different structures have their own positives and negatives, which are dependent on the goals of the investor and their own individual investment structure.
Some of the benefits of the LIC structure (the structure of WAX) include:
- It's a closed-end investment vehicle: Meaning the manager has a fixed pool of capital to invest with a long-term mindset, and doesn't have the risk of fast redemptions by investors in a time of market panic.
- They can smoothen out income to the investors: Which can be beneficial for both tax efficiency and emotional mindset, due to being able to retain profits over time (as compared to the trust structure, which must distribute income and crystallized capital gains to the investor in that financial year).
- The income will most likely be in the form of fully franked dividends: Which is an attractive form for Australian retirees due to the franking system in Australia. Since LICs are companies themselves and pay tax in Australia on profits, they receive franking credits paid on the tax they pay, in addition to the franking credits they receive from their investment portfolio. Well-managed LICs ensure their franking credit reserves are sufficient to pay future fully franked dividends (see 'franking reserves' chart above).