Listed managed investments – Earnings season is over and EAI is weighing its options – Claire Aitchison

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The monthly IIR LMI report provides key LMI market news for the month of August as well as IIR research updates and key data points as of July 31, 2022.

The earnings season ended at the end of August. Market volatility, particularly 2H’FY22, weighed on portfolio performance and impacted earnings for a number of PFRs. From a revenue perspective, this was positive for shareholders, with 84% of PFRs declaring a final dividend equal to or greater than the previous year (excluding exceptional dividends). We will post a full recap of the results in the coming weeks.

Key news includes:

  • EAI is weighing its options: In its FY22 results released on August 30, 2022, Ellerston Asian Investments Limited (ASX: EAI) reiterated that the board was looking to significantly reduce the discount and seek to provide shareholders who want liquidity at a price closer to the underlying. asset value, a clear path to buy back from NTA while offering other shareholders the opportunity to stay invested in the strategy. The Company will provide an update on the various alternatives the Board has considered and proposed next steps at the next AGM.
  • DJW raises $63.5 million via SPP: On August 23, 2022, DJW announced the results of a share purchase plan (SPP) announced earlier in the month. There were applications from 20.8% of eligible shareholders, with the company raising $63.5 million through the issuance of new shares at $2.78 per share.
  • DUI Announces Stock Purchase Plan (SPP): On August 18, 2022, DUI announced a stock purchase plan (SPP). Eligible shareholders can purchase up to $30,000 of new, fully paid-up common stock of DUI. The shares will be issued at the lower of: (a) $4.69 – a 3% discount to the DUI closing price on the day before the announcement, adjusted for the final FY22 dividend; or (b) the VWAP of the DUI price over the last five trading days of the SPP offer period. The closing date of the SPP offering is scheduled for September 26, 2022 and the shares are expected to be issued on September 30, 2022. Participants in the offering will not be entitled to the final FY22 dividend.
  • VG1 updates the dividend policy: During the month, VG1 announced that the Company was changing its dividend policy. Previously, the Company had a dividend yield target of 4% per annum calculated with reference to the share price. The Company will now seek to pay dividends on a semi-annual basis with the payment of at least 4.5 cents per share per semester. The Board of Directors wants dividends to be franked to the greatest extent possible and will seek to increase the payment of dividends over time. After adjusting for the FY22 final dividend, the company has 55.3 cents per share in earnings reserve, providing more than 6 years of dividend coverage for a dividend payout of 9 cents per share over the entire year. year, provided that the company has sufficient franking credits.
  • VG8 updates the dividend policy: During the month, VG8 announced that it had changed its dividend policy. The Company previously had a dividend yield target of 4% per year calculated by reference to the VG8 share price. The Company will now seek to maintain a semi-annual dividend of 5 cents per share and grow it over time. The Company will seek to pay dividends to the maximum extent possible.
  • PGF provides advice on dividends: On August 11, 2022, PM Capital Global Opportunities Fund Limited (ASX:PGF) announced its intention to maintain a minimum semi-annual dividend payment of 5 cents per share going forward, subject to no changes important in market conditions and the performance of the portfolio. The dividend forecast is consistent with the dividend forecast provided for FY22 of a full year dividend of at least 10 cents per share, which the company has distributed. The Company offers an attractive dividend yield based on the FY22 dividend and dividend forecast.
  • Scheme Meeting for the WLE merger with AEG scheduled for September 15, 2022: The Scheme meeting to consider and vote on the merger of Absolute Equity Performance Fund Limited (ASX: AEG) and WAM Leaders Limited (ASX: WLE) is scheduled for September 15, 2022 after the Courts have approved the convening of the meeting during the month. 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.

See the attachment to see the full report.

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