The Company’s investment objectives are to:
The Company will utilise Wilson Asset Management’s investment strategy, comprising three investment processes:
Research-driven investment process
Involves extensive research focusing on free cash flow, return on equity and the quality of the potential investee company. Each company is rated with respect to management, earnings growth potential, valuation and industry position. Under this process, Wilson Asset Management will only invest in a security once it can identify a catalyst or an event that will change the market’s valuation of that security.
Market-driven investment process
Takes advantage of short-term relative arbitrages and mis-pricings in the Australian equities market. Opportunities are derived from initial public offerings, placements, block trades, rights issues, corporate transactions (such as takeovers, mergers, schemes of arrangements, corporate spin-offs, restructurings), arbitrage opportunities, listed investment company discount arbitrages, relative value arbitrages, short selling and trading market themes and trends.
Involves extensive research and identifying required characteristics for the Investment Manager to decide on the appropriate times for shares to be purchased.