Australia | Nov 08 2022
This story features PLATINUM CAPITAL LIMITED, and other companies. For more info SHARE ANALYSIS: PMC
Download related file: IIR-Monthly-LMI-Update_1-November-2022
A Listed Investment Company (LIC) is a listed investment vehicle that offers investors access to a diversified portfolio of shares in other companies also listed on the stock market. Also known as Listed Investment Trusts or Listed Managed Investments.
For comprehensive comparative data tables for LICs please see attached.
LMI Market News
Platinum Capital Limited ((PMC)) Announces Capital Management Initiatives
On 25 October 2022, PMC announced that it will be seeking to issue bonus options on a 1-for-4 basis in early 2023 with an exercise price that is designed to take advantage of the depressed level of equity markets. The objective of the options will be to provide shareholders the opportunity to potentially benefit from any subsequent recovery in global equity markets during the option period and potentially improve the liquidity of the Company. The Company also clarified that in relation to the buy-back, the Company will buy back shares when the share price is trading at a discount to pre-tax net tangible asset value (NTA) of more than 20%. The Board believes a discount of this level may be in shareholders’ best interests to buy back shares.
Platinum Asia Investments Limited ((PAI)) Announces Capital Management Initiatives
On 25 October 2022, PAI announced that it will be seeking to issue bonus options on a 1-for-4 basis in early 2023 with an exercise price that is designed to take advantage of the depressed level of equity markets. The objective of the options will be to provide shareholders the opportunity to potentially benefit from any subsequent recovery in global equity markets during the option period and potentially improve the liquidity of the Company. The Company also clarified that in relation to the buy-back, the Company will buy back shares when the share price is trading at a discount to pre-tax NTA of more than 20%. The Board believes a discount of this level may be in shareholders’ best interests to buy back shares.
Argo Global Infrastructure Limited ((ALI)) Raises $21m through SPP
ALI raised $21m through the Share Purchase Plan (SPP) which closed on 14 October 2022. The Company received applications from 1,801 shareholders with 8.9m new shares issued at a price of $2.35 per share. The capital raised will be invested in line with the ALI investment mandate.
Changes to Magellan’s Investment Team
During the month, Magellan Financial Group ((MFG)) announced that David George has been appointed as Chief Investment Officer (CIO) alongside his role as Chief Executive Officer and Managing Director. His appointment to CIO formalises the responsibilities for Magellan’s investment functions that he took on upon his commencement with the company in July 2022. Mr. George will work together with Gerald Stack who has been appointed as Deputy CIO. Mr. Stack leads the team responsible for Magellan’s global infrastructure business. The appointments have enabled Chris Mackay to step back from his oversight role of Magellan’s global equities strategy.
Portfolio Manager Changes at Magellan High Conviction Trust ((MHHT))
On 17 October 2022, MHHT advised that effective from the date of the announcement Nikki Thomas an Alan Pullen have been appointed as co-portfolio managers of the Trust, replacing Chris Wheldon and Michael Poulson.
Ms. Thomas is the co-portfolio manager of Magellan’s global equity strategies. Ms. Thomas originally joined Magellan in January 2007 and was involved in the global equities strategy since its inception in July 2007 until December 2017. Ms. Thomas rejoined Magellan in 2022 after an absence of four years during which time she worked as a global portfolio manager at Aphinity Investment Management.
Mr. Pullen is the Head of the Financials Team, joining Magellan in 2012. Prior to Magellan, Mr. Pullen spent seven years as an analyst and portfolio manager at Maple-Brown Abbott, primarily covering financials in Asia ex-Japan, and he also worked for six years as an economist at the Reserve Bank of Australia.
Fat Prophets Global Property Fund ((FPP)) Seek to Replace the Investment Manager
On 16 September 2022, the Responsible Entity of FPP announced the request for a unitholder meeting to consider a special resolution to terminate the current investment management agreement with Fat Prophets Funds Management Pty Ltd and appoint Lanyon Asset Management Pty Ltd (Lanyon) as the investment manager of the fund and change the name of the fund to the Lanyon Global Fund. The Explanatory Memorandum was released on 7 October 2022 and an Extraordinary General Meeting has been scheduled for 10 November 2022.
Lanyon is the largest shareholder of FPP, owning 31.23% of units on issue and is seeking to replace the current investment manager to restore value for unitholders citing poor performance and lack of confidence in the strategy and the manager. If unitholders vote in favour of the resolutions, the new Manager will seek to amend the investment strategy.
Qualitas Real Estate Income Fund ((QRI)) Amends DRP
In light of the discount that QRI is trading at, QRI announced a revision to the Dividend Reinvestment Plan (DRP). Units issued under the DRP will now be delivered as the lesser of: (a) net asset value (NAV) as at the last day of the calendar month for the distribution period; and (b) the market price of units. Previously, units issued under the DRP were issued at a price equal to the end of month NAV.
Regal Investment Fund ((RF1)) Adds Resources Royalties Fund to Investment Mandate after Liquidity Proposal Approved
On 13 October 2022, RF1 announced that the unitholders of the Gresham Resources Royalties Fund ((GRRF)) voted in favour of the Liquidity Proposal at a recent unitholder meeting.
As detailed in the previous monthly report, the Liquidity Proposal sought to change the name of the fund from the GRRF to the Regal Resources Royalties Fund, appoint Regal as trustee and investment manager, modify the GRRF constitution and replace the information memorandum, terminate the existing investment management agreement and approve the payment of a performance fee to GRRF, among other matters.
Following the approval, the Resources Royalties Strategy has been added to the RF1 investment mandate, with an initial allocation of approximately 17% of RF1’s unaudited NAV as at 14 October 2022.
The Resources Royalties Strategy is the eighth investment strategy to be added to the RF1 investment mandate. The Resources Royalties Strategy aims to provide exposure to a portfolio of natural and renewable resource royalty investments that can provide both income and growth while seeking to minimise some of the downside risks usually associated with investing in mining activities, such as costs and exploration expenditure. The Strategy will seek exposure to a mix of natural and renewable resource royalties, commodity streams and royalty-related products, including listed and unlisted securities, such as equities, warrants, debt and similar instruments.
Plato Income Maximiser ((PL8)) Announces Monthly Dividend of $0.0055 Per Share for December Quarter
During the month, PL8 announced that it will be seeking to maintain a fully franked dividend of $0.0055 per share for the three months in the December 2022 quarter. The Board of PL8 considers that given current economic volatility it is prudent to continue dividends at the current levels in order to manage the Company’s profits reserve and franking credit balances appropriately.
QVE Equities Limited ((QVE)) Increases Dividend Outlook for FY22-23
On 19 October 2022, QVE announced an interim dividend of 1.3 cents per share for the September 2022 quarter, with an ex-dividend date of 15 November 2022 and payment date of 2 December 2022. The dividend represents an 8.3% increase on the June quarter dividend of 1.2 cents per share.
The Company also announced that it seeks to pay dividends totalling 5.2 cents per share for the FY23 period (inclusive of the September quarter dividend), subject to the Company maintaining sufficient profit reserves and there be no material impacts, changes or unforeseen events. The forecast dividend represents an 8.3% increase on the dividends paid for the FY22 period.
Revised Implementation Deed for the Restructure of WCM Global Long Short Limited ((WLS))
On 13 October 2022, WLS announced a revised implementation deed for the Scheme to restructure WLS. Initially, under the restructure proposal, WLS shareholders would exchange their shares for units in a newly registered and unlisted managed investment scheme. After further consideration, the Company has revised the Implementation Deed and under the revised terms, if the Proposed Restructure is approved, WLS shareholders will exchange their shares for units in the WCM Quality Global Growth Fund ((WCMQ)). The number of units received in WCMQ for each WLS share will be based on WLS’s post-tax NTA relative the WCMQ’s end of day NAV immediately prior to implementation.
If approved, upon the implementation of the Proposed Restructure, the WLS portfolio will be liquidated and the cash will be invested in line with the investment strategy of WCMQ, a long only global equity strategy. A General Meeting of WLS shareholders is scheduled for mid-December 2022.
The Company also declared a special dividend of 4.8165 cents per share, fully franked, which was paid on 31 October 2022.
Withdrawal of Merger Proposal for CD1, CD2 and CD3
After announcing a proposal to merge CD1, CD2, CD3 and CD Private Equity Fund IV to form a single fund on 5 October 2022 the Responsible Entity has subsequently withdrawn the merger proposal following feedback from investors.
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