WAM, Premium eye merger

WAM Capital and Premium Investors are seeking shareholder backing for a friendly merger that would combine the two listed investment funds into a single listed fund with combined assets of $300 million.

The article says consolidation is being driven by a downturn in equity markets, which has put pressure on listed investment funds to merge to help keep management costs down. For investors, consolidation can mean a larger capital base and potential cost efficiencies, although funds are also facing stronger demands for liquidity.

The merger is planned to proceed by way of a scheme of arrangement, with a shareholder vote on the proposal scheduled for late November.

If approved, the merger will create a listed investment fund with combined assets of $300 million.

WAM Capital chairman Geoff Wilson said the merger is consistent with the fund’s strategy of seizing select opportunities to grow. He also noted that an increased capital base will expand the range of opportunities available to the combined fund.

Yes. The article notes WAM recently raised $38 million from investors to help fund acquisitions, which aligns with its stated strategy to pursue growth opportunities.

The article points out that as funds consolidate and grow their capital bases, listed investment funds are becoming more attractive to self‑managed superannuation funds (SMSFs). That said, the piece also highlights that funds are facing demands for liquidity, which SMSFs may consider when assessing suitability.

Shareholders should expect a vote in late November on the scheme of arrangement. If shareholders approve the deal, the two funds would combine into a $300 million listed investment fund. Everyday investors should watch the shareholder vote outcome and any subsequent announcements for details on timing, unit allocations or changes to fund management — the article itself does not provide those post‑vote details.