WAM ACTIVE LIMITED — Fund Information / Factsheet 2017

Feb 12, 2017

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Investment update As at 31 January 2017

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Snapshot

Pre-tax net tangible assets

Pre-tax net tangible assets Gross assets $1.07 $38.9m

wilsonassetmanagement.com.au ABN 49 126 420 719

Fully franked dividend yield 4.3%

Performance (p.a. since January 2008) 12.9%

WAM Active Limited

Market overview

ASX code WAA Listed Jan 2008 Gross assets $38.9m Market cap $41.1m Share price (WAA) $1.15 Option price (WAAO) $0.052 NTA before tax $1.07 Shares on issue 35,698,303 Options on issue 34,579,653 Fully franked dividends 5.0c (FY2016) Fully franked dividend yield 4.3%

The S&P/ASX All Ordinaries Accumulation Index closed down 0.8% for the month. Following the inauguration of President Trump, US equity markets continued their march higher with the Dow Jones Industrial Average Index breaking through 20,000 for the first time. More recently, concerns around the Trump administration’s widening diplomatic rifts with both key allies and trade partners have weighed on markets. During the month, US Federal Reserve chair Janet Yellen said interest rates were likely to rise "a few times a year" for the next two years. Locally, domestic fourth-quarter inflation data fell short of expectations, with core inflation increasing 0.4% over the three months to December 2016 and 1.5% over the year, well below the Reserve Bank of Australia’s 2-3% target range.

Stock news

Investment objectives

• Deliver shareholders a regular income stream via fully franked dividends

• Provide a positive return with low volatility, after fees, over most periods of time

• Preserve capital

Wilson Asset Management investment & management team

Geoff Wilson Chairman & Portfolio Manager Kate Thorley Chief Executive Officer Chris Stott Chief Investment Officer & Portfolio Manager Matthew Haupt Portfolio Manager Martin Hickson Head of Trading Tobias Yao Senior Equity Analyst John Ayoub Senior Equity Analyst Oscar Oberg Senior Equity Analyst

Company overview

WAM Active Limited (ASX: WAA) is a listed investment company managed by 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.

During the month, online credit service company Afterpay Holdings Limited (ASX: AFY) provided a business update for the quarter ended 31 December 2016. Afterpay reported retail sales of over $100 million for Q2 FY17, up over 145% from the previous quarter. The company said it has continued to experience strong growth in new retail merchant clients. We rate management highly and believe Afterpay can continue to capitalise on its first-mover advantage and the uniqueness of its offering.

During the month of January a number of our market driven positions which were purchased for the Trump rally reached their valuation and where sold resulting in a sizeable short term increase in our cash holdings.

Net tangible asset (NTA) figures

NTA before tax	107.10c
NTA after tax and before tax on unrealised gains	105.73c
NTA after tax	105.73c

The above figures are not adjusted for the 34,579,653 options on issue with an exercise price of $1.14.

Performance

Performance
							Since
							Inception
Performance at	1	6	Fin	1	3 Yrs	5 Yrs	%pa
31 January 2017	Mth	Mth	YTD	Yr	%pa	%pa	(Jan-08)
WAA Investment Portfolio*	0.9%	4.0%	8.4%	15.7%	12.6%	14.2%	12.9%
S&P/ASX All Ordinaries	-0.8%	2.6%	9.1%	17.1%	7.5%	10.3%	3.0%
Accumulation Index
Outperformance	+1.7%	+1.4%	-0.7%	-1.4%	+5.1%	+3.9%	+9.9%
UBS Bank Bill Index	0.2%	0.9%	1.1%	2.0%	2.3%	2.7%	3.8%
Outperformance	+0.7%	+3.1%	+7.3%	+13.7%	+10.3%	+11.5%	+9.1%

*Investment performance and Index returns are before expenses, fees and taxes.

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Investment update wilsonassetmanagement.com.au Page 2 of 4 As at 31 January 2017 T +61 2 9247 6755

Investor conference call

Shareholders have the opportunity to take part in an investor conference call in which the investment team will provide an update on the WAM Active investment portfolio and our equity market outlook. The call will also cover WAM Capital, WAM Leaders and WAM Research.

Date : Wednesday 8 March 2017 Time : 4:30-5.30pm (AEST)

To register, please email Alexandra Hopper on investorcall@wilsonassetmanagement.com.au.

Growth of $10,000 investment since inception

WAM Active versus the Index

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$25,000
$18,430
$20,000
$15,000 $13,652
$10,000
$5,000
$0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
WAM Active S&P/ASX All Ordinaries Accumulation Index
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Diversified portfolio

Diversified portfolio
	December 2016			January 2017
Investment type	$m	%	$m			%
Listed equities	31.4	81.4	22.7			58.4
Short portfolio	(0.0)	(0.0)	(0.4)			(1.1)
Fixed interest & cash	7.2	18.6	16.6			42.7
Gross assets	$38.6m	100.0	$38.9			100.0
Total shares on issue	35,696,621			35,698,303*

*During the month, 1,682 options were exercised.

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Page 3 of 4

Investment update As at 31 January 2017

wilsonassetmanagement.com.au T +61 2 9247 6755

Top 20 holdings

Code Company HHV Hunter Hall Global Value Limited CYA Century Australia Investments Limited JBH JB Hi-Fi Limited CGF Challenger Limited AFY Afterpay Holdings Limited WOW Woolworths Limited TGG Templeton Global Growth Fund Limited CVO Cover-More Group Limited NUF Nufarm Limited IMD Imdex Limited	Code Company
	TWE Treasury Wine Estates Limited
	SUL Super Retail Group Limited
	ANN Ansell Limited
	WIC Westoz Investment Company Limited
	RCR RCR Tomlinson Limited
	AGF AMP Capital China Growth Fund
	AUB AUB Group Limited
	NWH NRW Holdings Limited
	SXE Southern Cross Electrical Engineering Limited
	WOR WorleyParsons Limited

Fully franked dividends

The Board is committed to paying an increasing stream of fully franked dividends to shareholders, provided the Company has sufficient profit reserves and franking credits, and it is within prudent business practices. Dividends are usually paid on a six-monthly basis and the dividend reinvestment plan is available to shareholders for both the interim and final dividend. The Company’s ability to generate franking credits is dependent upon the receipt of franked dividends from investments and the payment of tax.

Fully franked dividends since inception

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Cents per share
10.0
8.0
6.0
4.0
2.0
0.0
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
Fully franked dividends Return of Capital
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One-for-one option issue

In August 2016, the Company announced a one-for-one bonus option issue to all shareholders at no cost. Options entitle holders to purchase additional ordinary shares in WAM Active at the exercise price of $1.14 at any time on or before 17 September 2018. The options trade on the ASX under the code WAAO. The bonus option issue is an effective way to grow the Company and will deliver benefits to shareholders. As the Company’s size increases, onmarket liquidity for the shares is expected to increase. It will also increase the Company’s relevance in the market, improve the prospect of broker and research coverage, and gain interest from financial planners.

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wilsonassetmanagement.com.au Page 4 of 4 T +61 2 9247 6755

Investment update As at 31 January 2017