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WAM secures Blue Sky LIC

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Shareholders of the Blue Sky Alternatives Access Fund have voted in favour of Wilson Asset Management taking over as manager.

The majority (99.97 per cent) of the shareholders backed WAM’s proposal to add the ASX-listed company to its stable, rebranded as WAM Alternative Assets, at an extraordinary general meeting on Tuesday afternoon. 

The deal has taken place after boutique manager Blue Sky Alternative Investments went into receivership last year.

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BAF had entered the process of appointing WAM as its investment manager in July, transitioning away from Blue Sky. 

WAM chair Geoff Wilson and lead portfolio manager Adrian Siew will hold seats on the listed investment company’s (LIC) new board of directors, with Mr Siew to work with Macquarie chair of infrastructure and real assets, John Roberts on the investment committee. 

Mr Wilson holds 6.4 million shares in WAM Alternative Assets. 

The company has indicated it will declare the portfolio manager responsible for WAM Alternative Assets in the coming days.

In July, Michael Cottier, BAF chairman, said the change signalled the “beginning of a brighter future” for shareholders.

Mr Wilson added: “We believe the renewed alternative asset-focused LIC has great potential in the Australian market and we look forward to welcoming over 3,300 BAF shareholders into the Wilson Asset Management family.” 

WAM stated it will engage with shareholders with a plan to return the share price of Blue Sky Alternatives Access Fund (BAF) to a premium to net tangible assets (NTA), having agreed to deliver on the “Premium Target”. 

The company’s share price needs to trade at a premium to its pre-tax NTA for one month, at least three times during the next five years, for the Premium Target to be achieved. If WAM Alternative Assets does not meet the goal, shareholders will have the right to vote to terminate the agreements with WAM and to liquidate the company.

 

WAM secures Blue Sky LIC
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Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

You can contact her on [email protected].

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