IIR LMI Monthly Update – 30 June 2022

June 30, 2022

The IIR LMI Monthly Report provides key LMI market news for the month of May as well as IIR research updates and key data points as at 31 May 2022.

Key news items include:

  • MXT Raises $187m Through Placement to Wholesale and Institutional Investors: Metrics Master Income Trust (ASX: MXT) raised $187.3m through the issue of 93.67m new units to Wholesale and Institutional investors. Units were issued at $2.00 per unit. MXT had 879.2m units on issue post the issue of the new units. Capital raised will be invested in accordance with the investment mandate and target return of MXT.
  • WAM Leaders to Merge with Absolute Equity Performance Fund: On 14 June 2022, WAM Leaders Limited (ASX: WLE) announced it had entered into a Scheme Implementation Agreement (Scheme) with Absolute Equity Performance Fund Limited (ASX: AEG) for the merger of the two companies. The Scheme proposes that WLE will acquire 100% of the shares in AEG, with AEG shareholders receiving WLE shares as consideration. 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 the announcement by AEG in February 2022, in which the Board advised it was evaluating a range of alternatives to maximise value for shareholders. It is the intention of the WLE board that the AEG shareholders who receive WLE shares will be eligible for the FY22 final dividend paid by WLE. AEG shareholders are expected to vote on the Scheme at a meeting scheduled to be held in September 2022.
  • Hamish Douglass to Return to Magellan as a Consultant: During the month, Magellan Financial Group Limited (ASX: MFG), announced the Magellan Co-Founder, Hamish Douglass, will resume working with the business in a consultancy role. In his role, Hamish will provide investment insights, including geopolitical and macroeconomic views. Hamish ceased to be a permanent member of Magellan’s staff on 15 June 2022 and will commence the new role on 1 October 2022.
  • Joycelyn Morton Retires From ARG Board: On 30 June 2022, Argo Investments Limited (ASX: ARG) announced Joycelyn Morton will be retiring from the Board, 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 the retirement of Joycelyn, ARG has announced the appointment of Lianne Buck to the Board as an independent director. Lianne has over 20 years’ experience in Australian and global investment markets. Lianne commenced 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 Head of Direct Investments and Infrastructure. Lianne has a Bachelor of Commerce degree and is a member of the Australian Institute of Company Directors.
  • AIQ Raises $3.2m through Placement & Seeks to Implement Capital Management Initiatives: During the month, Alternative Investment Trust (ASX: AIQ) raised $2.76m through the issue of 25.1m shares at a price of $0.11 per share to Wholesale investors. The price of the new units, represented a 5.7% discount to AIQ’s adjusted NTA as at 31 May 2022. As disclosed in the announcement, the Trust is seeking to raise up to $3.2m as part of the Placement. In addition to the new units issued, at the upcoming EGM the Manager will be seeking approval for the issue of approximately 4.0m units to be issued to entities associated with the Manager. In addition to the capital raise, 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 18 November 2021.
    • Buy-Back Facility – AIQ intends to commence an on-market buy-back program. Under the buy-back AIQ intends to purchase units if they trade at a discount to the adjusted NTA of the Trust.
    • 1 for 10 Unit Consolidation – At an Extraordinary General Meeting (EGM), which the Trust intends to call, the Trust will be seeking approval for a 1 for 10 unit consolidation. At the EGM, the Trust will also be seeking approval for a number of initiatives to give the Trust capital flexibility including a refresh of the Trust’s placement capacity.

To view the report click here.