Wentworth Williamson Stable Income Fund
The Fund seeks to generate consistent monthly income for wholesale investors by investing primarily into unlisted credit securities that have the potential of generating income over the long term. (For Wholesale Investors Only)
The Wentworth Williamson Stable Income Fund seeks to generate consistent monthly income for wholesale investors by investing primarily into unlisted credit securities that have the potential of generating income over the long term for investors.
Capital preservation and income generation are key objectives of our investing process.
Private credit funds such as Wentworth Williamson Stable Income Fund seek to earn income yield for investor clients by being a source of wholesale funds to non-bank borrowers.
This investment product is designed for retirees, self-managed super funds or clients looking for stable income over at least a five-year investment time horizon. Investment income and the return of investor capital are not guaranteed. The Fund is invested in unlisted debt securities which may be illiquid and contain the risk of default by the issuer.
Investment Universe
- Unlisted proprietary assets; a meaningful proportion of the Fund’s assets will comprise unlisted securities and products which are unique and not generally available to the investing public
- Government and corporate bonds, listed and unlisted convertible notes, listed and unlisted debt instruments
- Cash
The Fund aims to provide stable, long-term income that exceeds the Reserve Bank of Australia Cash Rate plus 3.5% p.a.
This is a target return and may not be achieved. Investment income and the return of investor capital are not guaranteed. The fund is invested in unlisted debt securities which may be illiquid and contain the risk of default by the issuer.
Investments The Fund may invest in cash, government and corporate bonds, convertible notes, listed and unlisted debt instruments, geared and ungeared income-yielding property investments, infrastructure assets and other unlisted proprietary assets.
It is anticipated that all or a proportion of the Fund’s assets will comprise unlisted securities and investment products which are generally not available to the investing public.
Non-bank specialist lender to medical/dental professionals
The Fund provides finance through 2 warehouse structures to a non-bank medical specialist lender. Their book
remains steady at:
- $690m+ loan book; diversified across approximately 2,650 borrowers who are medical/dental professionals across Australia;
- personal guarantees from the underlying borrowers;
- the underlying borrowers continue to display strong credit features evidenced through the low arrears of 1.4% in March. There are no arrears beyond 60 days. There is a portfolio of the hardship of $3.4m which the lender is working through with the underlying borrowers;
- the lender is primed for growth having expended on infrastructure (IT, staff and new office) last year.
Non-bank lender providing Line of Credit for Australian businesses
The Fund provides warehouse funding to a non-bank lender who specialises in providing lines of credit for Australian businesses. The investment features are:
- secured by all the borrower’s trade receivables;
- the lender has a loan book of $35m, secured by $96m of invoices (of this $69m of invoices are insured);
- eligible receivables are insured by a credit insurance product of which the lender is the named beneficiary in the policy. The insurer is part of an AA-rated insurance group.
- the Fund has a further 1st loss protection of 50%;
- the loan book is performing well with only 3 borrowers in default totalling $408k. There is $2.285m of invoices and insurance to cover this. The business has attracted a senior funder and further capital injection for their growth.
Non-bank lender to Livestock Finance company
The Fund provides a senior debt facility for loan receivables of a livestock funder. The investment is/has:
- return enhancing for the Fund ;
- secured by livestock which gain weight and therefore appreciating over the financing period (typically the loan-to-value ratio at the end of the livestock financing period is around 64%6);
- multiple layers of security (first ranking over-funded livestock, first loss protection from the financier, personal guarantees and activation of caveatable interest in relevant farms);
- experienced management with an extensive track record in livestock finance and a loss history of 0.0175% in managing a similar previous business. This is evident in the credit quality of farmers being brought onto the book (for example, multiple generational farmers with land equity > 10x the loan size).
The business has strong growth potential and will be looking for additional capital partners in the near term.
Click here for the latest fund distribution performance.
Wentworth Williamson is an independent, boutique investment manager, owned and managed by staff.
We invest on behalf of ourselves, high-net-worth individuals, family offices and charitable foundations who have a long-term investment horizon.
Our focus is on delivering unique investment strategies that deliver long-term, risk-adjusted returns to our investors, with a focus on risk mitigation.
Geoff has significant experience in law, banking and investing, and is regarded as an expert in mergers and acquisitions, capital raisings and general corporate commercial law.
Geoff is Chairman of WW and Monash Advisory and was CEO and then Executive Chairman of Investec Bank (Australia) Limited from 2001 – 2008, where he retired and became the non-executive Deputy Chairman until March 2014.
Geoff previously held a number of non-executive directorships of ASX-listed companies including Cromwell Property Group Limited, Specialty Fashion Group Limited, Mirvac Limited, Channel Ten,
Rebel Sports Limited, Freedom Furniture Limited, Hoyts Limited and STW Limited.
Prior to Investec Bank, Geoff was a principal of Wentworth Associates, a boutique investment and advisory firm acquired by Investec Bank in 2001 and was formerly a partner of Freehills Holingdale and Page (now known as Herbert Smith Freehills, Law Firm).
Geoff has previously held positions in State and Federal Government organisations including being the initial Deputy Chairman of the Australian Sport Anti-Doping Authority (ASADA), Chairman of Film Finance Corporation Australia Limited, Chairman of the NSW Government Property Asset Utilisation Taskforce, Chair of the selection panel for the Australian Film Licenced Investment Company Scheme and Chair of the NSW Attorney Review into the Public Purpose Fund, amongst others.
Geoff was appointed by the Australian Olympic Committee to be the Attaché to the South African Olympic Team at the 2000 Olympic Games. He has also been involved in several Not for Profit and Philanthropic organisations. Geoff was appointed an Officer of the Order of Australia in 2005 for his significant contribution to Sports, the Arts and Philanthropy.
He holds a Bachelor of Law from the University of New South Wales, a Bachelor of Commerce from The University of Witwatersrand, a diploma from the Securities Institute of Australia, is a Fellow of the Australian Institute of Company Directors and a Senior Fellow of the Financial Services Institute of Australia.
James is currently Executive Director, Chief Investment Officer of WW and portfolio manager of the Wentworth Williamson Fund Between 2008 and 2012, James was Portfolio Manager of the Investec Australian Equity Fund and a member of the fund’s investment committee alongside Geoff Levy.
Over this period the fund increased by 26.1%, compared with the S&P/ASX 300 Accumulation Index (fund’s benchmark), which declined by 7.2%. Whilst at Investec Bank (Australia) Limited and prior to inception of the Investec Australian Equity Fund, James and Geoff developed a highly successful investment process generating outstanding returns in listed equities in the direct Investments division of Investec Bank (Australia) Limited.
Prior to the inception of the Wentworth Williamson Fund, James worked from April 2012 until August 2013 for Allan Gray Australia Pty Ltd, one of Australia’s largest value fund managers. Prior to joining Investec Bank (Australia) Limited, James headed a sector research team at Société Générale London. He was recognised as a leading independently rated Pan European equity research analyst, including one of the few analysts to be rated in the top 10 in a major Pan European sector in the first year of full coverage.
Prior to this, James headed a sector research team at Société Générale based in Johannesburg.
Overall, James has over two decades of experience in financial markets. James has a Bachelor of Commerce, a Graduate Diploma from the Securities Institute of Australia and is a Senior Associate of FINSIA.
Kuin Joined Wentworth Williamson in August 2022. She has over 25 years of finance experience in Australia and international markets.
She was previously at Investec Bank of Australia and managed a $5 billion balance sheet through funding structures such as securitisation, syndicated debt, bond issuance and deposit base of high-net-worth investors. Her experience at Investec included managing a property loan portfolio.
Prior to that, she was a financial markets dealer at CBA managing north American and Asian clients.
Her early days in banking involved credit analysis on SME loans. The various roles in banking translates to a broad experience in investor relations, credit analysis, financial markets and balance sheet management. It also includes living experiences in Tokyo and Singapore.
She is passionate about developing long-term relationships with the market and investors through active participation and engagement.
Kuin has a Bachelor of Economics from Monash University, a Graduate Diploma from the Securities Institute of Australia and a Master of Applied Finance from Macquarie University.
Martin joined WW in 2016 as an Investment Analyst. Prior to this, he worked in Switzerland and London at Stonehage Fleming, the largest global independent family office, where he reviewed the investments of high-net-worth clients and also researched global stocks at the equity fund.
Martin has had a passion for investing from an early age, coming from a family with a long history of value investing. Martin graduated from Macquarie University with a Bachelor of Commerce and Applied Finance, majoring in Accounting.
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