WAM ACTIVE LIMITED — Capital/Financing Update 2021

Mar 3, 2021

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WAM Active February 2021 investment portfolio performance and NTA update

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4 March 2021 ASX announcement

WAM Active Limited (ASX: WAA) is pleased to announce its February 2021 investment portfolio performance and estimated pre-tax net tangible assets (NTA) per share to allow shareholders[1] to make an informed decision regarding the Share Purchase Plan (SPP), which closes on Wednesday 17 March 2021 . The SPP is subject to the terms and conditions set out in the SPP Booklet .

The investment portfolio increased 2.6%[2] in February 2021, outperforming the Bloomberg AusBond Bank Bill Index, representing the return on cash, by 2.6%[2] and outperforming the S&P/ASX All Ordinaries Accumulation Index by 1.2%[2] . The estimated 28 February 2021 pre-tax NTA is $1.02 per share, while the current share price is $1.10 per share.

The WAM Active SPP offers existing shareholders the opportunity to acquire up to $30,000 of ordinary, fully paid shares in WAM Active without incurring any brokerage fees, at $1.08 per share, a discount to the 3 March 2021 share price of $1.10 per share.

Shares issued under the offer will receive the fully franked interim dividend[3] of 3.0 cents per share. The fully franked interim dividend represents an annualised fully franked dividend yield of 5.6% and a grossedup dividend yield of 7.9%[4] on the SPP price of $1.08 per share.

Shareholders who wish to apply for the SPP can visit www.wamactivespp.com.au and log in using the SRN or HIN and part of the holding’s registered name. Shareholders will receive a summary of their application when submitted and BPAY® details to complete the payment.

WAM Active's share registry, Boardroom Pty Limited, has emailed application forms to eligible shareholders who have email addresses on the share register, this email would have come from companies@boardroomlimited.com.au . Printed copies will be mailed only to those shareholders who do not have email addresses on the share register. If you currently receive postal correspondence from Boardroom and would like to receive an email application form earlier, please contact Boardroom directly on 1300 420 372 or wilsonam@boardroomlimited.com.au .

Join our WAM Active Shareholder Update and Q&A

The investment portfolio holds 5.8%[5] in cash and the investment team sees significant opportunities that fit the WAM Active investment process. On Thursday 11 March at 3:00pm, Chairman and Chief Investment Officer Geoff Wilson AO, Lead Portfolio Manager Oscar Oberg and Portfolio Manager Tobias Yao will discuss the February reporting season, the SPP, the Bonus Issue of Options and answer any questions you may have. Please register your interest here .

Investment portfolio performance FYTD[2] 1 year investment portfolio perf0rmance to 28 February 2021[2] +21.6% +18.7%

Annualised fully franked interim dividend

Dividend coverage[6]

6.0cps 2.0 years

Annualised fully franked interim dividend yield Annualised fully franked grossed-up interim on SPP price of $1.o8 per share dividend yield[4 ] on SPP price of $1.o8 per share 5.6% 7.9%

1. Shareholders on the WAM Active register as at 7:00pm (Sydney time) on Tuesday, 23 February 2021 with a registered address in Australia or New Zealand.

2. Investment portfolio performance and index returns are before expenses, fees and taxes.

3. Assumes shareholders continue to hold shares issued under the offer at the dividend record date on Wednesday, 19 May 2021.

4. Grossed-up dividend yield includes the benefit of franking credits and is based on a tax rate of 30.0%.

5. As at 28 February 2021.

6. The Company’s profits reserve at the end of the period was 12.0 cents per share, before the payment of the fully franked interim dividend of 3.0 cents per share and the issue of shares under the SPP and Placement.

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wilsonassetmanagement.com.au info@wilsonassetmanagement.com.au Telephone. + 61 2 9247 6755 Level 26, Governor Phillip Tower Fax. +61 2 9247 6855 1 Farrer Place Sydney NSW 2000 Australia

ABN 49 126 420 719

Performance since inception

Performance since inception
as at 28 February 2021							Since
							inception
	1	Fin	1	3 yrs	5 yrs	10 yrs	%pa
	mth	YTD	yr	%pa	%pa	%pa	(Jan-08)
WAA Investment Portfolio	2.6%	21.6%	18.7%	8.3%	12.0%	11.3%	12.1%
BloombergAusBond Bank Bill Index (cash)	0.0%	0.0%	0.2%	1.2%	1.4%	2.4%	3.0%
Outperformance	+2.6%	+21.6%	+18.5%	+7.1%	+10.6%	+8.9%	+9.1%
S&P/ASX All Ordinaries Accumulation Index	1.4%	17.7%	9.6%	8.1%	11.2%	7.8%	4.9%
Outperformance	+1.2%	+3.9%	+9.1%	+0.2%	+0.8%	+3.5%	+7.2%

Investment portfolio performance and index returns are before expenses, fees and taxes.

Indicative timetable

Indicative timetable
SPP Record Date (7:00pm Sydney time)	Tuesday, 23 February 2021
SPP opened and SPP Terms and Conditions Issued	Thursday, 25 February 2021
SPP closes (5:00pm Sydney time)	Wednesday, 17 March 2021
Shares trade ex-Bonus Options entitlement	Wednesday, 24 March 2021
Options commence trading on a deferred settlement basis	Wednesday, 24 March 2021
Issue of SPP Shares	Thursday, 25 March 2021
Record date to determine entitlements under the Bonus Option Issue (7:00pm Sydneytime)	Thursday, 25 March 2021
Issue of Options	Friday, 26 March 2021
SPP Shares expected to commence trading on ASX	Friday, 26 March 2021
Normal trading in Options commences on the ASX	Monday, 29 March 2021
Despatch of Option Exercise Form	Monday, 29 March 2021
Dividend ex date	Tuesday, 18 May 2021
Dividend record date	Wednesday, 19 May 2021
Dividend payment date	Friday, 28 May 2021
Options expire (5:00pm Sydney time)	Monday, 31 October 2022

Benefits to all shareholders

The SPP and Bonus Issue of Options will deliver benefits to all shareholders beyond the opportunity for participants to purchase shares at a discount to the current market price, without paying brokerage fees. The primary purpose of the capital raising is to equitably and efficiently grow the Company’s assets, increase its relevance in the market, improve the prospect of broker and research coverage, garner additional interest from financial planners and gain additional access to market opportunities. The increased size is also expected to reduce the fixed expense ratio of the Company to the benefit of all shareholders.

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info@wilsonassetmanagement.com.au Level 26, Governor Phillip Tower 1 Farrer Place Sydney NSW 2000 Australia

wilsonassetmanagement.com.au Telephone. + 61 2 9247 6755 Fax. +61 2 9247 6855

ABN 49 126 420 719

One-for-one Bonus Issue of Options

Shareholders who participate in the SPP will be entitled to the Bonus Option Issue on any new shares issued under the Offer, which continue to be held by the Shareholder at 7:00pm (Sydney time), Thursday, 25 March 2021, the record date for the Bonus Option Issue.

Each WAM Active Option provides holders with the opportunity, but not the requirement, to purchase one additional WAM Active share for $1.10 per Option, without incurring any brokerage fees. The Options can be exercised at any time, up until they expire on Monday 31 October 2022. Shares issued on Options exercised on or before 13 May 2021 will also receive the fully franked interim dividend of 3.0 cents per share[3] , which represents an annualised fully franked dividend yield of 5.5% and a grossed-up dividend yield of 7.8%[4] on the exercise price of $1.10 per Option. The Options will trade on the ASX under the code WAAOA from 29 March 2021.

All investors who purchase WAM Active shares on the ASX up until 23 March 2021 will be entitled to receive the Bonus Options at no additional cost.

Further enquiries

Shareholders who have questions regarding the SPP are encouraged to contact Olivia Harris on (02) 9247 6755 or email info@wilsonassetmanagement.com.au . Alternatively, shareholders can consult their financial advisor or stockbroker. If you are a professional and sophisticated investor[7] and have enquiries regarding the offer, or you would like to participate in the Placement, please contact Hamish Nairn from Taylor Collison on (08) 8217 3908.

Top 20 holdings with portfolio weightings

as at 28 February 2021

Code Company % KBC Keybridge Capital Limited 8.5% TGG Templeton Global Growth Fund Limited 5.2% AUI Australian United Investment Company Limited 4.9% SGR The Star Entertainment GroupLimited 4.6% PIA Pengana International Equities Limited 3.6% VUK Virgin MoneyUK PLC 3.5% CGF Challenger Limited 3.0% SIQ SmartgroupCorporation Limited 3.0% MMS McMillan Shakespeare Limited 2.9% HLS Healius Limited 2.8%	Code Company %
	CGC Costa GroupHoldings Limited 2.5%
	CAR Carsales.com Limited 2.3%
	SWM Seven West Media Limited 2.2%
	RHC RamsayHealth Care Limited 2.1%
	SDF Steadfast GroupLimited 2.0%
	VOC Vocus GroupLimited 1.9%
	NWS News Corporation 1.9%
	CCP Credit CorpGroupLimited 1.8%
	EML EML Payments Limited 1.7%
	GMA Genworth Mortgage Insurance Australia Limited 1.7%

1. These terms are defined in the Corporations Act and refer to individuals with net assets greater than $2.5 million, or those who earn gross income of $250,000, or a Superannuation Fund with net assets of at least $10 million.

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info@wilsonassetmanagement.com.au Level 26, Governor Phillip Tower 1 Farrer Place Sydney NSW 2000 Australia

wilsonassetmanagement.com.au Telephone. + 61 2 9247 6755 Fax. +61 2 9247 6855

ABN 49 126 420 719

About WAM Active

WAM Active Limited has an investment management agreement with Wilson Asset Management. Listed in January 2008, WAM Active provides investors with exposure to an active trading style with the aim of achieving a sound return with a low correlation to traditional markets. WAM Active’s investment objectives are to deliver a regular income stream via fully franked dividends, provide a positive return with low volatility, after fees, over most periods of time, and to preserve capital.

All major platforms provide access to WAM Active, including AMP North, BT Panorama, Colonial First State FirstWrap, Netwealth, Macquarie Wrap and Hub24. WAM Active receives coverage from the following independent investment research providers:

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About Wilson Asset Management

Wilson Asset Management has a track record of making a difference for shareholders and the community for more than 20 years. As the investment manager for seven leading LICs: WAM Capital, WAM Leaders, WAM Global, WAM Microcap, WAM Alternative Assets, WAM Research and WAM Active, Wilson Asset Management invests over $4 billion on behalf of more than 90,000 retail investors.

Wilson Asset Management created and is the lead supporter of the first listed investment companies to deliver both investment and social returns: Future Generation Australia (ASX: FGX) and Future Generation Global (ASX: FGG). Wilson Asset Management advocates and acts for retail investors, is a member of the global philanthropic Pledge 1% movement, is a significant funder of many Australian charities and provides all team members with $10,000 each year to donate to charities of their choice. All philanthropic investments are made by the Investment Manager.

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For further information, visit wilsonassetmanagement.com.au or contact:

Geoff Wilson AO

Kate Thorley

Jesse Hamilton

Chairman & Chief Executive Officer Chief Financial Officer Chief Investment Officer (02) 9247 6755 (02) 9258 4953 (02) 9247 6755 0405 115 644 0401 944 807

James McNamara

Head of Corporate Affairs (02) 9258 4915 0416 734 080

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info@wilsonassetmanagement.com.au Level 26, Governor Phillip Tower 1 Farrer Place Sydney NSW 2000 Australia

wilsonassetmanagement.com.au Telephone. + 61 2 9247 6755 Fax. +61 2 9247 6855

ABN 49 126 420 719