WAM predominantly invests in small-to-mid cap stocks. The Manager primarily maintains small positions in securities to minimise risk, however, there are no size restrictions on investments so the manager can take high conviction positions in a stock if they so desire. We note that smaller cap stocks tend to entail a greater level of risk; however, the upside potential can be considerable.

WAX aims to maintain a portfolio of between 30 and 60 securities. The manager focuses on small-to-mid cap stocks with most investments outside the top 100. Given the company focuses on industrial stocks, the portfolio has very little, if any, exposure to the resource sector.

The manager primarily invests in large cap stocks with over 80% of the portfolio invested in top 50 stocks, in line with the benchmark index. The portfolio is heavily weighted to the Financials sector

WIC has a concentrated portfolio, with the intent being to hold 10 to 25 stocks. The portfolio comprised 23 stocks at 31 December 2014. The Manager takes high conviction positions in stocks. The Manager will hold cash in the event attractive investment opportunities are not available.

Our coverage in this sector keeps growing - we anticipate to keep expanding coverage into the new quarter. We also see new LICs being listed in the coming quarter so watch this space!