Watermark Global Leaders Fund Limited will be a Listed Investment Company (‘LIC’) focused on international securities. The portfolio manager is Watermark Funds Management Pty Ltd which has funds under management of over $570m, including two ASX listed LICs being the Australian Leaders Fund (ALF) and Watermark Market Neutral Fund Ltd (WMK). The Company will employ a market neutral strategy which involves both long and short portfolios.
The Watermark Global Leaders Fund will raise $110 million at the maximum subscription by issuing 100 million shares at $1.10 per share. IPO investors will also receive a free option attached to each share. Focused on international shares, the fund seems to be a convenient opportunity to gain diversified international exposure, but what should investors ned to know?
Firstly, the portfolio manager has a strong track record of outperforming the broader market and creating shareholder value. Between 2004 and 2016 the Australian Leaders Fund has outperformed the All Ordinaries Index by over 200% in absolute terms. Having demonstrated its capabilities with other funds, management intends to apply the same stock selection criteria to the Watermark Global Leaders Fund. Furthermore, the company is scheduled to return capital to shareholders via semi-annual dividends starting in FY17.
Watermark will list at $1.10 per share which is a slight premium to book value due to the offer costs. The net asset value of the fund is $1.078 per share, hence there is no discount. Despite the company’s market neutral strategy, the performance of the fund will be subject to overall stock market returns, while any significant downturn may adversely impact the value of the fund. ‘Short-selling’ is an integral part of management’s strategy and IPO investors must be aware that there are inherent risks associated with short-selling as the loss can exceed the initial investment. Poor stock selection may adversely impact shareholder returns.
The Watermark Global Leaders Fund offers diversified exposure to international equities. The portfolio manager has demonstrated its capability to deliver long-term shareholder value having outperformed the All Ordinaries Index with its flagship fund. However, general market risks, short-selling and the risk of poor stock selection are hurdles. The company is projected to distribute semi-annual dividends which makes the LIC a suitable investment opportunity for investors seeking income whilst increasing their exposure to international equity markets.
ASX Code: WGF Shares on Offer: 100m Listing Price: $1.10 Market Capitalisation: $110m Listing Date: December 21
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.
Contact the Author
You can contact the author on the following:
Phone: 02 8031 9700
Interested in IPOs? Bid directly here:
Disclaimer: Clicking on this link will take you to a third-party website. We do not control or give advice regarding the content or links that appear on these sites and Wise-owl accepts no responsibility or liability in respect of any third party materials. Wise-owl may earn a commission from any product or service from third party websites.
Investors have poured more than $300 million in just nine days into the latest ASX listing of alternative asset manager Metrics, which will offer retail investors exposure to the difficult-to-access private credit market.
A copy of the financial service guide (FSG) can be found here: Click here
Terms and Conditions
This site is operated by Wise-owl Holdings Pty Ltd, an authorised representative of wise-owl.com Pty Ltd, holder of Australian Financial Services (AFS) License 246670. These Terms and Conditions are addressed to you and anyone that uses the contents provided within this site. The content of wise-owl.com contains general information and advice on various products that are available on a subscription basis via this site. You acknowledge and agree that wise-owl.com may at any time alter the contents or remove part or all of the pages with the intention of ceasing publication of some or all of the pages, either temporarily or permanently.
Access to wise-owl.com is granted by use of a valid User Identification and Password, which is available to authorised subscribers. When wise-owl.com issues a User Identification and Password to you, You must treat it as confidential, not disclose it to any third person and comply with the Terms and Conditions of use. You must not interfere with or disrupt other users of wise-owl.com, or manipulate any information or data.
In the absence of notice from you that the confidentiality of your User Identification and Password has been compromised, wise-owl.com will be entitled to construe all activity on wise-owl.com using that user identification and password as being for and on behalf of you and you agree to pay all fees so incurred and to take full responsibility for all actions of person using your User Identification and Password. wise-owl.com reserves the right to amend the User Identification, Password and other security procedures for access to wise-owl.com at any time. If you have any queries please email us at firstname.lastname@example.org or phone 1300 306 308.
All subscriptions are on an automatically recurring basis. To cancel your subscription call 1300 306 308 or send an e-mail to email@example.com. All cancellations must be submitted at least 5 business days prior to next due payment. No refunds will be given if these terms are not met.
The reports on this website are produced by Wise-owl Holdings Pty Ltd (Wise-owl), an authorised representative of wise-owl.com Pty Ltd, holder of Australian Financial Services (AFS) License 246670, with AFS Representative Number 001259718. Wise-owl.com has made every effort to ensure that the information and material contained in these report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the accuracy or completeness of the information and material and it should not be relied upon as a substitute for the exercise of independent judgement. Except to the extent required by law, wise-owl.com does not accept any liability, including for negligence, for any loss or damage arising from the use of, or reliance on, the material contained in this report. These reports are for information purposes only and are not intended as an offer or solicitation with respect to the sale or purchase of any securities.
WARNING: The reports are intended to provide general financial product advice only. They have been prepared without having regard to or taking into account any particular investor's objectives, financial situation and/or needs. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. Where applicable, investors should obtain a copy of and consider the product disclosure statement for that product (if any) before making any decision.
The distribution of these reports in jurisdictions outside Australia may be restricted by law and persons who come into possession of these reports should seek advice on and observe any of these restrictions. Failure to comply with these restrictions may violate securities laws. Members who are resident in countries other than Australia should consult their professional advisers as to whether any governmental or other consents are required or whether any other formalities need to be considered and followed.
DISCLOSURE: Wise-owl.com and/or its associates may not effect a transaction upon its or their own account in the investments referred to in this report or any related investment until the expiry of 24 hours after the report has been published.
Additionally, wise-owl.com may have, within the previous twelve months, provided advice or financial services to the companies mentioned in these reports.
These reports may not be reproduced, distributed or published for any purpose, unless the person or entity seeking to do so is expressly authorised in writing by wise-owl.com.
The securities recommended by wise-owl.com carry no guarantee with respect to return of capital or the market value of those securities. There are general risks associated with any investment in securities. Investors should be aware that these risks might result in loss of income and capital invested. Neither wise-owl.com nor any of its associates guarantees the repayment of capital.
Personal identification information
We may collect personal identification information from Users in a variety of ways, including, but not limited to, when Users visit our site, register on the site, subscribe to the newsletter, fill out a form, and in connection with other activities, services, features or resources we make available on our Site. Users may be asked for, as appropriate, name, email address, phone number. Users may, however, visit our Site anonymously. We will collect personal identification information from Users only if they voluntarily submit such information to us. Users can always refuse to supply personally identification information, except that it may prevent them from engaging in certain Site related activities.
Non-personal identification information
We may collect non-personal identification information about Users whenever they interact with our Site. Non-personal identification information may include the browser name, the type of computer and technical information about Users means of connection to our Site, such as the operating system and the Internet service providers utilized and other similar information.
Web browser cookies
How we use collected information
Wise-Owl may collect and use Users personal information for the following purposes:
To improve customer service
Information you provide helps us respond to your customer service requests and support needs more efficiently.
To personalize user experience
We may use information in the aggregate to understand how our Users as a group use the services and resources provided on our Site.
To process payments
We may use the information Users provide about themselves when placing an order only to provide service to that order. We do not share this information with outside parties except to the extent necessary to provide the service.
To send periodic emails
We may use the email address to send User information and updates pertaining to their order. It may also be used to respond to their inquiries, questions, and/or other requests. If User decides to opt-in to our mailing list, they will receive emails that may include company news, updates, related product or service information, etc. If at any time the User would like to unsubscribe from receiving future emails, we include detailed unsubscribe instructions at the bottom of each email or User may contact us via our Site.
How we protect your information
We adopt appropriate data collection, storage and processing practices and security measures to protect against unauthorized access, alteration, disclosure or destruction of your personal information, username, password, transaction information and data stored on our Site.
Sensitive and private data exchange between the Site and its Users happens over a SSL secured communication channel and is encrypted and protected with digital signatures.
Sharing your personal information
We do not sell, trade, or rent Users personal identification information to others. We may share generic aggregated demographic information not linked to any personal identification information regarding visitors and users with our business partners, trusted affiliates and advertisers for the purposes outlined above.
Third party websites
Users may find advertising or other content on our Site that link to the sites and services of our partners, suppliers, advertisers, sponsors, licensors and other third parties. We do not control the content or links that appear on these sites and are not responsible for the practices employed by websites linked to or from our Site. In addition, these sites or services, including their content and links, may be constantly changing. These sites and services may have their own privacy policies and customer service policies. Browsing and interaction on any other website, including websites which have a link to our Site, is subject to that website's own terms and policies identification information regarding visitors and users with our business partners, trusted affiliates and advertisers for the purposes outlined above.
We use Google Analytics to collect information about how people use this website. The information we obtain from Google Analytics helps us understand user needs so that we can offer a better user-experience.
Your acceptance of these terms
By using this Site, you signify your acceptance of this policy and terms of service. If you do not agree to this policy, please do not use our Site. Your continued use of the Site following the posting of changes to this policy will be deemed your acceptance of those changes.