WCM Global Growth (WQG) provides access to an actively managed portfolio of quality global companies found predominantly in the high growth consumer, technology and health care sectors. While the S&P Global 1200 Health Care Index held Pfizer at a weight of ~3.3% for 31 December 2020, the LIC provides similar access to the structural tailwinds observed in figure 1, but with an appreciation for a rising competitive advantage and corporate culture that supports the expansion of this ‘economic moat’ (Continued in report).
Thorney Re-Introduces Buy-Back
In recognition of the material discount to which Thorney Opportunities (TOP) has traded relative to its net tangible asset backing, the Board has announced the intention to renew an on-market share buy-back program from 19 February 2021 to 18 February 2022, where a maximum of 16.2m shares will be acquired through ongoing capital management. With 199.1m shares outstanding, the proposal is within the 10/12 limit and does not require a resolution. The company intends to fund the share buy-back program from existing cash reserves (Continued in report).
Bell Potter’s Indicative NTA tracks the ‘indicative’ movement of a LIC’s underlying NTA each month by monitoring the percentage movements of the disclosed holdings and using an index to track the movement of the remaining positions. The Indicative NTA works best with LICs that have a high percentage of investments concentrated in its Top 20, regular disclosure of its Top 20, lower turnover of investments, regular disclosure of its cash position and the absence of a performance fee. We have also included an adjusted indicative NTA and adjusted discount that removes the LIC distribution from the ex-dividend date until the receipt of the new NTA post the payment date. This report is published each Monday prior to the market open and is available on a daily basis. Intraday indicative NTAs will be available on request through your adviser.
Hayden Nicholson is an ETF/LIC Specialist at Bell Potter Securities. Hayden provides comprehensive coverage of the ETF and LIC sectors, producing a range of highly regarded reports covering investment fundamentals, asset class structure and cost, and the role of managed investments in portfolios.