Investment Offer
New investment opportunities are regularly made available to our clients across all asset classes and industry sectors through company IPOs and capital raisings.
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WAM Income Maximiser Limited Offer
Morgans is a Joint Arranger and Joint Lead Manager to the Offer1
Offer of fully paid ordinary shares in WAM Income Maximiser Limited (“Company” or “WAM Income Maximiser”), at an Offer price of $1.50 per Share, to raise up to $510 million2.
WAM Income Maximiser will be an ASX Listed Investment Company (“LIC”)3 that is actively managed by Wilson Asset Management (International) Pty Limited (“Investment Manager” or “WAM”). WAM Income Maximiser will provide shareholders with a diversified portfolio of Australian equities and corporate debt investing in high-quality Australian companies within the ASX 300 and primarily investment grade corporate debt, aiming to provide:
- monthly franked dividends targeting the RBA Cash Rate + 2.5% per annum (currently over 6% p.a.)4,
- capital growth over the medium to long-term, and
- If not redeemed before, Notes will convert into Macquarie Group Limited Ordinary Shares on 15 December 2034
The Offer includes a Broker Firm Offer to clients of Morgans. Please contact your Morgans Adviser to discuss the suitability of the Company given your specific investment objectives, current portfolio holdings and if appropriate secure an allocation.
Wilson Asset Management
WAM as the Investment Manager employs 63 staff and is led by the Company’s Chairman and Chief Investment Officer, Geoff Wilson and Chief Executive Officer, Kate Thorley.
Proven Track Record
WAM has a proven track record of delivering a stream of franked dividends through its eight established LICs and manages over $5.9 billion of funds under management (as at 31 January 2025). The current WAM LICs have paid over $3.6 billion in dividends to its 130,000+ retail and wholesale investors over the last 27 years.
Experienced Investment Team
Geoff Wilson will oversee the Investment Team which comprises 20 professionals with over 50 years’ collective investing experience gained across equities and alternative assets.
Proven Investment Process
WAM Income Maximiser will leverage WAM’s proven investment process and significant investment experience acquired over 27 years as a specialist LIC manager. WAM Income Maximiser employs the same investment personnel on WAM Leaders.
Investment Portfolio Strategy
The Investment Strategy will be focused on investments in high-quality companies with strong cash flow characteristics and the potential for growing capital management initiatives in the form of franked dividends and buybacks. The investment Portfolio will also include a debt component aiming to provide stable monthly income.
The Investment Strategy will use a proprietary screening tool to identify companies that are paying sustainably high distributions, and those that have the potential to become strong and consistent distribution payers in the future.
WAM Income Maximiser is expected to be composed of 40 to 70 equity and debt investments, with a dynamic approach to portfolio weightings between the asset classes, utilising the Investment Team’s deep macroeconomic skillset.
This multi-asset focus aims to enhance diversification while providing a combination of monthly franked income and capital growth over the medium to long-term along with preservation of capital.
Target Portfolio Composition
- The equity component (expected to be 60-70%) will be focused on profitable, cash flow generative and income paying companies, predominately within the S&P/ASX 300 Index.
- The debt component (expected to be 30-40%) will comprise of securities that provide stable cash flow including Australian Subordinated Debt, Hybrids and corporate Bonds.
WAM Income Maximiser Overview
Benefits of WAM Income Maximiser:
Monthly Franked Income Stream
Aiming to provide a steady monthly income stream through franked dividends, targeting an initial income return of over 6% per annum (including franking credits), based on the RBA Cash Rate + 2.5% per annum4. The first dividend is expected to be declared and paid in August 2025, with monthly payments thereafter.
Multi-asset focus
Multi-asset strategy enhancing diversification and aiming to provide a combination of franked income and capital growth over the medium-to-long term. Diversified portfolio of equities and debt also aims to reduce volatility and support capital stability.
High quality ASX300 Equities
Exposure to high-quality Australian equities with strong capital management and the ability to sustain or grow their distributions over time. Focused on profitable, cash flow generative and income paying companies.
Access to Wholesale Debt Market
WAM Income Maximiser will invest in investment-grade corporate debt including Australian Subordinated Debt, Hybrids and corporate Bonds aiming to provide stable income. Providing retail investors with exposure to wholesale debt markets they are typically unable to access.
Proven Investment Processes
The company leverages WAM’s well-established research and market strategies to identify and invest in high-quality, cash-generative companies.
LIC Structure Benefits
The LIC structure provides advantages such as a closed pool of capital, strong corporate governance and the ability to pay fully franked dividends.
Manager alignment
Senior members of the investment team and the Directors of the Company intend to participate in the Offer.
Key Features of the Offer
- Ability to secure a Broker Firm allocation in WAM Income Maximiser.
- A “day 1” Subscription Price set at a NAV per share of $1.50 with the IPO Offer costs paid by the Investment Manager.
- Aiming to provide a steady monthly income stream through franked dividends, targeting an initial income return of over 6% per annum (including franking credits), based on the RBA Cash Rate + 2.5% per annum4.
- The potential to earn dividend income from a diversified portfolio of listed equity securities focused on profitable, cash flow generative and income paying companies predominately within the S&P/ASX 300 Universe.
- Exposure to investment grade corporate debt and access to the wholesale debt market with the aim to reduce volatility and support capital stability.
- Access to an actively managed portfolio, composed of 40 to 70 equity and corporate debt holdings, with a dynamic approach to portfolio weightings between the asset classes. The active management and diversified Portfolio aim to enhance returns while managing risk.
- Access to a highly experienced investment manager with a strong track record managing a range of LICs with Australian and global listed equities and alternative assets expertise acquired over 27 years.
- Fee and total costs with incentives for performance that aligns with the interests of investors.
- ASX listed liquidity expected to be quoted on ASX under the code WMX3.
Issuer: WAM Income Maximiser Limited
Transaction: Listed Investment Company Offer
Morgans Role: Joint Arranger and Joint Lead Manager
Offer Size: $510 million
Offer Launch Date: 5 March 2025
Expected Broker Firm Close Date: 4 April 2025
The success and profitability of the Company will largely depend on the Investment Manager’s ability to manage the Portfolio in a manner that complies with the Company’s objectives, strategies, policies, guidelines and permitted investments. If the Investment Manager fails to do so, the Company may not perform well. The payment of dividends is not guaranteed. The declaration and payment of a dividend is at the complete discretion of the Company and is additionally subject to the requirements of Corporations Act and generally accepted accounting principles.
The past performance of portfolios managed by the Investment Manager, and persons associated with the Investment Manager, are not necessarily a guide to future performance of the Company and in particular, other portfolios managed by the Investment Manager have not comprised of investment grade corporate notes and bonds, hybrids and short-term money market instruments as a core component. The success and profitability of the Company depends almost entirely on the ability of the Investment Manager to construct a Portfolio of investments that has the ability to increase in value over time.
The investment strategy may be impacted by various factors outside the control of the Company and is subject to the risks set out in Section 6 of the Prospectus. Prior to investing, you should consider the risks involved and whether they are appropriate for your objectives and financial circumstances.
Cooling-off rights do not apply to an investment in the Offer. This means that, in most circumstances, you cannot withdraw your Application once it has been accepted.
Design and Distribution Obligations (DDO)
The Corporations Act imposes obligations on the Issuer to determine an appropriate Target Market for the Offer. Morgans as the distributor must take steps which result in the Offer being distributed only to investors that are within the Target Market.
Footnotes
- Morgans will receive fees for its role.
- The Offer may proceed with a lower amount, subject to the minimum proceeds from the offer.
- Application will be made to list WAM Income Maximiser on ASX.
- The Company’s Target Income Return includes franking credits. The initial Target Income Return is not expected to be achieved immediately. The Target Income Return is not a forecast, rather, it is an objective of the Company’s to be achieved over time once adequate profit reserve and franking credits have been established.
More information
Investors should read the Prospectus in full to understand the features and risks of the Offer. Please contact your Morgans adviser to apply under the Offer.
If you have any questions about the Offer, please contact your Morgans adviser, call 134 226 or find your nearest office.
Download Prospectus
The Offer is being offered only in Australia and the Prospectus will only constitute an offer to a person receiving it in Australia. Not for distribution, directly or indirectly, in the United States or to, or for the account or benefit of, US Persons, except in accordance with an available exemption from the registration requirements of the US Securities Act. The distribution of the Prospectus (including an electronic copy) in jurisdictions outside Australia may be restricted by law.
