WAM ACTIVE LIMITED — Interim / Quarterly Report 2009

Aug 13, 2008

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WAM ACTIVE LTD (WAA) – INVESTMENT UPDATE & NTA JULY 2008

WAM Active Limited (WAA) listed on the Australian Stock Exchange in January 2008 after raising $15.4 million.

WAA offers investors exposure to an active trading style with the aim of achieving a sound return with a low correlation to traditional markets. This was achieved in our first seven months with the Fund outperforming the All Ordinaries Index by 20.8%.

The investment objectives of WAA are to derive an absolute return, to deliver investors an income stream in the form of fully franked dividends and to preserve capital.

NTA before tax payable and after tax assets	99.01c
NTA after tax and before tax on unrealised gains	99.01c
NTA after tax	98.63c

MARKET OUTLOOK

The Australian sharemarket experienced another torrid month in July, with the All Ordinaries Accumulation Index falling a hefty 5.2%. The banking sector was again hit hard with ANZ and NAB both having significant write downs to asset value as a result of the property collapse in the US. The market was also negatively impacted by a decline in resource stocks. The big mining stocks have been resilient since the overall market started to decline in November 2007. Since June 2008, the mining sector has also been sold off with investors concerned about slowing world growth, particularly in China.

On a brighter note the recent decline in oil prices and talk of a cut in official interest rates by the RBA may be the first signs that industrial and financial stocks have bottomed. Since November 2007 both sectors have declined by more than 40%. For these sectors to continue to enjoy shareholder support the oil price and interest rates need to fall further.

PORTFOLIO STRUCTURE & STRATEGY

	As at 30 June 2008	As at 30 June 2008		As at 31 July 2008	As at 31 July 2008
Investment Type	$m	%		$m	%
Listed Equities	3.44	21.9%		5.57	36.0%
Fixed Interest and Cash	12.28	78.1%		9.91	64.0%
Total Long Portfolio	15.72	100.0%		15.48	100.0%
Total Short Portfolio	(0.36)	100.0%		(0.30)	100.0%
	No.			No.
Total no. of ord shares on issue	15,400,101			15,400,101
Total no. of options on issue	15,400,100			15,400,100

PORTFOLIO STRUCTURE & STRATEGY (continued)

During the month of July we increased our exposure to the equity market. We took advantage of the following placements and rights issues, Brockman Resources Ltd (BRM), Photon Group Ltd (PGA), WDS Ltd (WDS) and AJ Lucas Group Ltd (AJL).

We short sold and closed out Bradken Ltd (BKN) and Orica Ltd (ORI) and currently have a short position in AWE and Oakton Ltd (OKN).

We increased our exposure to some larger cap stocks being Lend Lease Corporation Ltd (LLC), Metcash Ltd (MTS), Oil Search Ltd (OSH), Toll Holdings Ltd (TOL) and Seven Network Ltd (SEV). We also increased our exposure to the financial sector being, Commonwealth Bank of Australia (CBA), ASX Ltd (ASX), Challenger Financial Services Group Ltd (CGF), Henderson Group PLC (HGI), Macquarie Group Ltd (MQG), Macquarie Capital Alliance Group (MCQ) and Computershare Ltd (CPU).

During the month we traded positions in Fortescue Metals Group Ltd (FMG), ANZ Banking Group Ltd (ANZ), National Australia Bank Ltd (NAB), Qantas Airways Ltd (QAN), Tabcorp Holdings Ltd (TAH) and sold down our positions in Primary Health Care Ltd (PRY) and Seek Ltd (SEK).

At 31 July 2008 the major securities held in the portfolio were:

CODE	COMPANY	MARKET VALUE as % of Long Portfolio
MQG	Macquarie Group Limited	10.3%
ARQ	ARC Energy Ltd	7.0%
ASX	ASX Ltd	7.0%
KBC	Keybridge Capital Limited	6.5%
LLC	Lend Lease Corporation Limited	6.1%
SEV	Seven Network Limited	5.6%
TOL	Toll Holdings Ltd	5.4%
CBA	Commonwealth Bank of Australia	5.2%
OSH	Oil Search Limited	5.2%
CGF	Challenger Financial Services Group Ltd	5.0%
CLO	Clough Limited	4.9%
JST	Just Group Ltd	4.6%
MCQ	Macquarie Capital Alliance Group	3.9%
MTS	Metcash Limited	3.7%
HAP	HFA Accelerator Plus Ltd	2.3%
PGA	Photon Group Limited	2.3%
CPU	Computershare Ltd	2.2%

PORTFOLIO STRUCTURE & STRATEGY (continued)

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Asset Allocation
Long portfolio
36%
Cash and fixed
interest 64%
Short portfolio
2%
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Long Portfolio Sector Allocation
Energy
12% Food & Staples
Retailing
4%
Materials
3%
Media
Diversified 8%
Financials
39% Real Estate
6%
Retailing
5%
Software & Services
5%
Commercial Transportation
Services & Supplies Banks 5%
2% Capital Goods 5%
6%
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PERFORMANCE TABLE

	Jan 08	Feb 08	Mar 08	Apr 08	May 08	Jun 08	Jul 08	Since Inception
Gross Portfolio*	+0.3%	+1.2%	+0.5%	+1.6%	+2.4%	-3.7%	-1.1%	+1.2%
All Ords Accum.	-11.2%	+0.3%	-4.1%	+4.6%	+2.4%	-7.3%	-5.2%	-19.7%

• *The change in the portfolio before all expenses, fees and taxes.

For further information please contact Mr Geoff Wilson or Mr Matthew Kidman on (02) 9247 6755

Level 11, 139 Macquarie Street, Sydney NSW 2000 | GPO Box 4658 Sydney NSW 2001 | ABN 49 126 420 719 Phone 02 9247 6755 | Fax 02 9247 6855 | info@wami.com.au | www.wilsonassetmanagement.com.au