WZR
Will you be having another look at WZR now that it has dropped to about $0.15? What is the stability of the dividend given it's above 10%?
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Answer
Hi David,
Wisr (WZR) did catch my eye the other day given it has fallen so far. The reason we exited the position in November in the Emerging Companies Portfolio was more about the alternative finance space generally which has become very crowded. We took the view that while there is a place for alternative finance, competition is key and the market has become very competitive at a time when house hold savings rates are at historical highs and house prices have rallied significantly. That means consumers can either dip into elevated savings or draw down equity in their home loan which is far cheaper. We may revisit once we see a decline in household savings rates and or a decline in house prices. For now, WZR is not on our radar and it does not currently pay a dividend.
