Recognising that consistent dividends are important to its shareholders, the Company’s objective remains to pay a regular, consistent dividend stream from available profits and cash flow in line with the performance of the Company.

Share Buy-Back

The Company intends to undertake an on-market share buy-back of up to 10% of its issued share capital as part of a capital management initiative over the next 12 months.

WDE is committed to actively managing the Company’s capital and believes that the buy-back provides the opportunity to repurchase shares at attractive valuations.  Shares will only be bought back if the WDE share price trades at a material discount to its underlying net asset value.

WDE has appointed Baillieu Holst to manage the buy-back process.  The buy-back will commence after the release of WDE’s half year results for the 2017/18 year. The half year result is planned for release on 26 February, 2018.

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John Murray

Listed Investment Company Wealth Defender Equities Limited (ASX: WDE) has achieved a successful capital raising of $125.7 million, more than double the minimum target of $50 million set out in the Initial Public Offer (IPO) prospectus.

The offer opened to investors on March 27, 2015 and closed on May 5, 2015. The company expects to be listed on the Australian Securities Exchange (ASX) on May 21, 2015.

John Murray, Perennial Value founder and managing director, said the result indicates a validation of Wealth Defender’s unique investment strategy which aims to enhance long-term performance outcomes by allowing for participation in market upswings while looking to cushion losses during significant equity market downturns.

Mr Murray said Wealth Defender Equities provides a complement to the increased allocation by investors to direct equities during the current low interest rate environment.

“Wealth Defender Equities is not another long-only equity LIC,” he said. “We expect it to provide direct equity investors with potential market upside, diversification and liquidity benefits coupled with the ‘cushioning’ attributes that make this LIC so unique.”

Mr Murray said a strong theme that emerged during the offer period was potential investors seeking  access to dividend yield from equities but also looking to limit their downside risk.

“We met with hundreds of financial advisers and many self-directed investors during the WDE national road show events. Our conversations confirmed that WDE is an investment solution built for these times. Also, the recent actions of the Reserve Bank in cutting interest rates to historical low levels have accentuated this dilemma for many investors.”

Mr Murray said he looked forward to welcoming new shareholders on board that were confirmed with the allocation of shares and loyalty options on May 15, 2015.

The IPO was managed by joint lead managers Lonsec Limited, Macquarie Capital Australia Limited and Morgan Stanley Australia Securities Limited. Co-lead managers were Bell Potter Securities Limited, CBA Equities Limited and Ord Minnett Limited.

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