LMI Monthly Update: June – Switzer Daily

IMT Market News

IIF Reaffirms Recommended Rating for Tribeca Global Natural Resources Limited (ASX:TGF)

During the month, IIR reaffirmed its recommended rating for Tribeca Global Natural Resources Limited (ASX:TGF). TGF provides exposure to a concentrated, high-conviction, actively managed portfolio of long and short natural resource stocks and credit positions, as well as commodity positions. The portfolio is managed by Tribeca Global Resources Pty Ltd, part of the Tribeca Group, a global asset manager founded in 1998 with $3.2 billion in FUM.

The strategy is based on a combination of top-down macroeconomic analysis and bottom-up sector and thematic fundamental company analysis. The strategy is flexible (intentionally), with the manager having the ability to invest across the entire capital structure (equity and debt) and across the entire resource sector value chain. Although the manager has a global mandate, he focuses on developed countries rather than emerging markets. The net and gross exposure will not exceed 150% and 200%, respectively.

The Company will seek to generate a return to shareholders in excess of 15% per annum (after fees and expenses) over the long term, which the Manager considers to be a period in excess of 5 years.

Given its global mandate, the Company will be directly exposed to fluctuations in exchange rates. The manager will seek to fully hedge the portfolio’s currency risk exposure. The Investment Manager will seek to achieve this objective through a combination of natural hedges and foreign exchange contracts and forwards.

The full report is available on the IIR website (www.independentresearch.com.au).

MXT Raises $187M Through Placement to Wholesale and Institutional Investors

Metrics Master Income Trust (ASX:MXT) raised $187.3 million through the issuance of 93.67 million new shares to wholesale and institutional investors. Units were issued at $2.00 per unit. MXT had 879.2 million units outstanding after the new units were issued.

The capital raised will be invested in accordance with MXT’s investment mandate and target return.

WAM Leaders to merge with Absolute Equity Performance Fund

On June 14, 2022, WAM Leaders Limited (ASX: WLE) announced that it had entered into a Scheme Implementation Agreement with Absolute Equity Performance Fund Limited (ASX: AEG) for the merger of the two companies. The Scheme proposes that WLE acquire 100% of the shares of AEG, with AEG shareholders receiving WLE shares in return. The number of WLE shares issued will be based on the ratio of the pre-tax NTA of the two companies on the Calculation Date.

The merger comes after AEG announced in February 2022, in which the board said it was evaluating a range of alternatives to maximize shareholder value.

The WLE Board of Directors intends that AEG shareholders who receive WLE shares will be eligible for the final FY22 dividend paid by WLE. AEG shareholders are expected to vote on the Scheme at a meeting scheduled for September 2022.

The merger will provide AEG shareholders with the opportunity to realize the value of their investment with AEG shares trading at a discount for an extended period. For WLE shareholders, the acquisition should increase the shareholder base, which has the advantage of improving liquidity.

Hamish Douglass back at Magellan as a consultant

During the month, Magellan Financial Group Limited (ASX:MFG), announced that Magellan co-founder Hamish Douglass would resume working with the company in an advisory role. In his role, Hamish will provide investment insights, including geopolitical and macroeconomic views. Hamish ceased to be a permanent member of Magellan staff on June 15, 2022 and will take up his new role on October 1, 2022.

FOR Estimates Semi-Annual Distribution 7.5 cents per unit

On June 17, 2022, Forager Australian Shares Fund (ASX: FOR) announced an indicative semi-annual distribution of 7.5 cents per share. The distribution includes an ordinary distribution of 4 cents per unit and a special distribution of 3.5 cents per unit.

On June 2, 2022, the Fund announced an indicative special distribution estimate of 6.5 cents per unit for the period, but this was later reduced to 3.5 cents per unit due to losses realized after the announcement. initial. The actual amount of the distribution is expected to be announced to the market on July 7, 2022. If the distribution complies with the notices, distributions declared for the FY22 period would total 11.5 cents per unit. This represents a payout yield of 9.58% based on the market price as of June 29, 2022.

In November 2021, the Fund announced changes to the distribution policy. The intent of the new distribution policy is to pay ordinary distributions every six months and to pay special distributions in years when the Fund’s taxable income is significantly higher than ordinary distributions.

Joycelyn Morton leaves ARG board

On June 30, 2022, Argo Investments Limited (ASX: ARG) announced that Joycelyn Morton would step down from the Board of Directors, effective immediately. Joycelyn has served on the board since 2012 and remains a founding director of Argo Global Listed Infrastructure (ASX: ALI).

In light of Joycelyn’s retirement, ARG announced the appointment of Lianne Buck to the Board of Directors as an Independent Director. Lianne has over 20 years’ experience in the Australian and global investment markets. Lianne began her executive career in Canada as a Chartered Accountant before working in various roles for Macquarie Group, Westpac Banking Corporation, Hastings Funds Management and NSW Treasury Corporation where she was responsible for direct investments and infrastructure. Lianne holds a Bachelor of Commerce and is a Fellow of the Australian Institute of Corporate Directors.

Lianne is an experienced business director and is currently also a non-executive director of AusNet Services and ISPT Pty Ltd. Previously, she served on the boards of Spark Infrastructure, Australian Pacific Airports Corporation and Utilities Trust of Australia Pty Ltd.

RF1 estimates semi-annual payout of 24.5 cents per share

RF1 disclosed an estimated final payout of 24.5 cents per share. The distribution has a record date of July 1, 2022. The final distribution is expected to be calculated and announced to investors in mid-July.

The estimated distribution brings the full-year distribution to 34.5 cents per unit, representing a distribution yield of 10.9% based on market price as of June 29, 2022.

The Distribution Reinvestment Plan (DRP) will be available to Unitholders on the Record Date. Units issued under the DRIP will be issued at the lower of the prevailing market price or net asset value.

PE1 declares a distribution of 3.24 cents per unit

Pengana Private Equity Trust (ASX: PE1) declared a semi-annual distribution of 3.243 cents per unit. The distribution has a record date of July 4, 2022 and is expected to be paid on July 22, 2022. The total distribution declared for the FY22 period is 6.34 cents per unit and represents a distribution yield of 4.48% based on the market price as of June 29, 2022.

AIQ raises $3.2 million through placement and seeks to implement capital management initiatives

During the month, Alternative Investment Trust (ASX: AIQ) raised $2.76 million through the issuance of 25.1 million shares at a price of $0.11 per share to wholesale investors. The price of new units represented a discount of 5.7% on AIQ’s adjusted NTA as of May 31, 2022.

As indicated in the announcement, the Trust is seeking to raise up to $3.2 million under the placement. In addition to the new shares issued, at the next EGM, the Manager will seek approval for the issuance of approximately 4.0 million units to be issued to entities associated with the Manager.

The proceeds from the capital raised will be used in accordance with AIQ’s existing investment strategy. The Investment Manager believes that the investment environment, particularly in the secondary market
is currently attractive due to recent volatility. The capital raised is expected to be deployed in the short term through the Trust’s investment in the Warana 2021 Fund.

In addition to the capital increase, AIQ announced the implementation of a number of initiatives, including:

  • Distribution Reinvestment Plan (DRP) – AIQ intends to reinstate the DRP for the upcoming distribution which has been suspended since November 18, 2021.
  • Redemption facility – AIQ intends to launch a buyback program on the market. In connection with the redemption, AIQ intends to purchase Units if they are trading at a discount to the Trust’s Adjusted NTA. Redemption is supposed to start after the DRP pricing period.
  • 1 for grouping 10 units – At a special general meeting (SGM), which the Trust intends to call, the Trust will seek approval for a 1 for 10 unit consolidation. At the EGM, the Trust will also seek approval for a number of initiatives to provide the Trust with capital flexibility, including a renewal of the Trust’s investment capacity. The WAM Active and Keybridge Capital saga continues During the month, WAM Active Limited (ASX:WAA) announced that it had received a declaration filed in the Federal Court of Australia by Keybridge Capital Limited (ASX:KBC). KBC is asking for statements to overturn the result where 87% of WAA shareholders voted against the resolutions at the meeting called by KBC, in which it sought approval for an off-market takeover of WAA. WAA said it totally denies the claim and will defend the case.

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