WAM ACTIVE LIMITED — Fund Information / Factsheet 2018

Jan 11, 2018

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Investment update As at 31 December 2017

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wilsonassetmanagement.com.au ABN 49 126 420 719

Snapshot

Pre-tax net tangible assets

$1.11

Fully franked dividend yield

4.8%

Gross assets

$45.6m

Performance (p.a. since January 2008)

13.2%

WAM Active Limited

WAM Active Limited
ASX code	WAA
Date of listing	Jan 2008
Gross assets	$45.6m
Market cap	$45.9m
Share price (WAA)	$1.14
Option price (WAAO)	$0.02
NTA before tax	$1.11
Shares on issue	40,268,018
Options on issue	30,412,460
Fully franked dividends	5.5c
(FY2017)
Fully franked dividend yield	4.8%

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 Portfolio Manager Oscar Oberg Portfolio Manager Tobias Yao Senior Equity Analyst John Ayoub Senior Equity Analyst Cooper Rogers Assistant Dealer

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.

Market overview

The S&P/ASX All Ordinaries Accumulation Index increased 2.0% in December 2017, to close the calendar year up 12.5%.

During the month, the Reserve Bank of Australia (RBA) left the cash rate unchanged, while reiterating its upbeat outlook for 3% gross domestic product (GDP) growth and rising inflation for the next few years. The Westpac-Melbourne Institute index of consumer sentiment increased to a four-year high, rising 3.6% in December and data from the Australian Bureau of Statistics reported continued and strong growth in Australia’s population.

After months of speculation, Amazon officially launched its Australian operations during the month. Domestic retail stocks rallied as the launch failed to inspire confidence in the online retailer.

Net tangible asset (NTA) figures

NTA	before tax	110.66c*
NTA	after tax and before tax on unrealised gains	108.61c*
NTA	after tax	108.60c*

*The NTA before tax figure is after the payment of $14k (0.04 cents per share) in tax during the month. The above figures are not adjusted for the 30,412,460 options on issue with an exercise price of $1.14.

Performance

	Performance
							Since
	Performance at	1	Fin	1	3 Yrs	5 Yrs	Inception %pa
	31 December 2017	Mth	YTD	Yr	%pa	%pa	(Jan-08)
	WAA Investment Portfolio*	1.9%	11.2%	15.5%	15.1%	14.0%	13.2%
	S&P/ASX All Ordinaries Accumulation Index	2.0%	9.3%	12.5%	9.2%	10.4%	4.0%
	Outperformance	-0.1%	+1.9%	+3.0%	+5.9%	+3.6%	+9.2%
	UBS Bank Bill Index (Cash)	0.1%	0.9%	1.8%	2.1%	2.3%	3.6%
	Outperformance	**+1.8% **	+10.3%	**+13.7% **	+13.0%	+11.7%	+9.6%

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

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

Investment update As at 31 December 2017

Growth of $10,000 investment since inception

WAM Active versus the Index

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$25,000
$21,060
$20,000
$15,473
$15,000
$14,341
$10,000
$5,000
$0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
WAM Active (ASX: WAA) S&P/ASX All Ordinaries Accumulation Index UBS Bank Bill Index
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Notes:

1. The above graph reflects the period from inception in January 2008 to 31 December 2017.

2. WAM Active’s performance is calculated using the closing daily share price in Australian dollars and assumes all dividends are reinvested.

3. The S&P/ASX All Ordinaries Accumulation Index and the UBS Bank Bill Index have been chosen for comparison purposes only. The graph is not intended to be an indication of future performance of any asset class, index or the WAM Active portfolio.

Diversified portfolio

Diversified portfolio
		November 2017			December 2017
Investment type	$m		%	$m			%
Listed equities	36.1		79.9	39.8			87.1
Short portfolio	(0.4)		(1.0)	0.0			0.0
Fixed interest & cash	9.6		21.1	5.8			12.9
Gross assets	$45.3		100.0	$45.6*			100.0
Total shares on issue		40,268,018			40,268,018

*This figure is after the payment of $14k in tax for FY18 and $403k in tax for FY17 during the month.

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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Page 3 of 4

Investment update As at 31 December 2017

wilsonassetmanagement.com.au T +61 2 9247 6755

Top 20 holdings

Top 20 holdings
Code Company PIA Pengana International Equities Limited NEC Nine Entertainment Co. Holdings Limited SVW Seven Group Holdings Limited TGG Templeton Global Growth Fund Limited PTM Platinum Asset Management Limited MQG Macquarie Group Limited GUD GUD Holdings Limited PRY Primary Healthcare Limited TAH Tabcorp Holdings Limited MMS McMillan Shakespeare Limited	Code Company
	TGP 360 Capital Group Limited
	WDE Wealth Defender Equities Limited
	ALL Aristocrat Leisure Limited
	HSO Healthscope Limited
	MQA Macquarie Atlas Roads Group
	BLD Boral Limited
	PPC Peet Limited
	BTT BT Investment Management Limited
	GTY Gateway Lifestyle Group
	AOG Aveo Group

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. 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 2016/17
Fully franked dividends Return of capital
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Page 4 of 4

Investment update As at 31 December 2017

wilsonassetmanagement.com.au T +61 2 9247 6755