Does MM like WLE

Hi Chris,

The WAM Leaders (WLE) listed investment company (LIC) is forecast to yield ~7% over the coming 12-months but it’s fallen well over 20% over the last 18-months while the ASX200 has pushed up to all-time highs, i.e. decent yield but painful capital depreciation.

• For FY24 the WAM Leaders Investment Portfolio has returned 2.8% before fees, underperforming the market by 9.3%. It currently trades around about its NTA, which is the value of its underlying share portfolio. At times listed investment companies will trade at discounts (less so Wilson LICs) given their rusted-on investor base, however, underperformance like this if its sustained would generally lead to a discount opening up.

In FY24 the dividend will be supported by retained earnings from prior years or paying out capital, which is what they can often do to smooth dividends when the portfolio returns are not high enough to fund it. Sort of like paying yourself a dividend from your own bank account! We prefer to eat our own cooking @ Market Matters Invest.

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WAM Leaders (WLE)

LAST UPDATED 13/07/2024 08:17

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WAM Leaders (WLE)

LAST UPDATED 13/07/2024 08:17