I don’t own WAM Global shares but am curious to what others think about today’s announcement of bonus options. A few questions it raised for me were..
The purpose of the bonus issue per the announcement was to “increase it’s relevance in the market, improve the prospect of broker and research coverage, and gain additional interest of financial planners”.
Do you think WAM Global is really lacking in the above?
Another reason is “to reduce the fixed expense ratio of the company”.
WAM Global currently is more than $500 million in size, do you think that poses problems for it’s fixed expense ratio?
Would becoming a much larger LIC potentially prevent it from getting set in great smaller opportunities, i.e. do they become less “nimble” with their trading in the future as a result?
Is potentially doubling the size of the supply of units bullish for the price of the asset I own?
If I don’t have the money or willingness to take up my bonus options, will I get a fair price if I have to sell them on market?
Investors who wanted to invest more in WAM Global, has there even been anything stopping them of late given a normal discount to NTA, is a bonus plan necessary?
Who is the real winner from this supposed “win / win” deal?
Lastly here are some older links on this debate..
Nothing ‘Free’ About LIC Options - Forager Funds
Are free LIC options too good to be true? - ETF Watch
Do LIC options provide investors with value? (firstlinks.com.au)