WAM ACTIVE LIMITED — AGM Information 2008

Nov 18, 2008

CHAIRMAN’S ADDRESS

WAM ACTIVE LIMITED ANNUAL GENERAL MEETING

Wednesday 19[th] November 2008 – 2.00pm

Lyceum Theatre, Wesley Centre 220 Pitt Street, Sydney NSW 2000

1. INTRODUCTION

Good afternoon, welcome to the first Annual General Meeting of WAM Active Ltd (WAA). Thank you for your attendance and for your support since we listed in January this year.

My name is Geoff Wilson, I am chairman of the board of directors and I will be chairing the meeting today. I would like to introduce the other members of the board – Matthew Kidman, Chris Cuffe and Ron Walker. John Abernethy sends his apologies.

2. MISSION

WAA is an investment company which offers investors exposure to an active trading style with the aim of achieving a sound return with a low correlation to traditional markets. WAA is managed by MAM Pty Ltd a company owned by entities associated with Geoff Wilson and Matthew Kidman.

3. PERFORMANCE

We are pleased to report on the company’s performance in its first year of operation. Over the period, approximately 74% of total assets were held in cash and fixed interest. In the year to June 2008 the Gross Portfolio increased 2.2% while the Small Ordinaries Accumulation Index fell 20.5% and the All Ordinaries Accumulation Index fell 15.2%.

For the 2008 year WAA made a profit before tax of $118,626 and an operating profit after tax of $92,673.

The result has been achieved through active investing. Even though during the period we held a high level of cash (74%) we actively traded the equity portion of the portfolio which turned over 8.3 times

4. NTA & SHARE PRICE

Our goal is to have the share price trading at a slight premium to NTA. We believe this will be achieved with performance and the payment of fully franked dividends delivering a high dividend yield. The share price is currently at a small discount to the pre-tax NTA.

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5. GOAL

Our goal is to deliver a return of 10-15% per annum for our shareholders. This would ideally be achieved by turning over, ten to twelve times a year, a portfolio of 40 to 50 companies.

6. DIVIDEND POLICY

Dividends are paid out of profit and/or retained earnings. As an active investor, any movement in our portfolio, either positive or negative, is recognised in our profit and loss account. It is worth noting dividends can be paid from each year’s profit without a requirement to recover past negative retained earnings.

The board is committed to paying dividends when profitability allows. Whenever possible, it is the board’s intention to increase the ordinary dividend paid each year. Obviously this will be dependent on adequate profitability and availability of franking credits.

7. MARKET OUTLOOK

We are 12 months into a bear market. Risk has and is being repriced. The world is deleveraging. Investors are filled with fear. In the stock market, extreme emotions provide opportunities. I believe the current period will provide the greatest buying opportunity in my lifetime.

8. PORTFOLIO

I have included a list of our major holdings as at 31[st] October 2008.

CODE	COMPANY	MARKET VALUE as % of Gross Assets
CBA	Commonwealth Bank of Australia	2.2%
NAB	National Australia Bank Limited	2.0%
ASX	ASX Limited	1.8%
ANZ	Australia and New Zealand Banking Group Limited	1.5%
AMP	AMP Limited	1.1%
SGP	Stockland	1.1%
ALZ	Australand Property Group	1.0%
MVU	MatrixView Limited	1.0%
EBI	Everest Babcock & Brown Alternative Inv Trust	1.0%
ANZPB	Australia and New Zealand Banking Group Limited Prefs	0.8%

9. CONCLUSION

In conclusion I would like to thank the staff, directors and shareholders of WAM Active Limited for their continuing support. We look forward to an exciting future ahead together. We believe there are always opportunities and we look forward to the current year.

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