WAM ACTIVE LIMITED — Interim / Quarterly Report 2009

Jun 11, 2009

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WAM ACTIVE LIMITED (WAA) INVESTMENT UPDATE & NTA – MAY 2009

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 17 months with the Fund outperforming the S&P/ASX All Ordinaries Accumulation Index by 42.0%. 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.

• In May WAA’s gross portfolio (before all fees, costs and taxes) increased by 5.00%, while the S&P/ASX All Ordinaries Accumulation Index increased by 2.15%.

• The gross portfolio has increased 3.17% for the 11 months to 31 May 2009 while the S&P/ASX All Ordinaries Index fell 25.09%.

NTA before tax payable and after tax assets	103.49c*
NTA after tax and before tax on unrealised gains	103.49c
NTA after tax	100.22c

• This includes 3.79 cents per share in tax assets.

MARKET OUTLOOK

The Australian sharemarket consolidated in May with a 2.2% gain. While most investors believed a correction was due after the violent bounce in prices in March and April, no such event took place. Since the market bottom on March 6, the S&P/ASX All Ordinaries Index has rallied a staggering 28%. A combination of improving economic news and investors desperate to gain exposure to equities have driven prices higher.

The market cannot keep rising at the pace of the last 100 days. However, it is becoming more likely each day that March was the low for the cycle. We believe the market will consolidate its gains and edge higher over the course of 2009. There will be corrections but the trend will be up. In recent times we have increased our market exposure due to extreme valuations and improving business conditions.

PORTFOLIO STRUCTURE & STRATEGY

	As at 30 April 2009	As at 30 April 2009		As at 31 May 2009	As at 31 May 2009
Investment Type	$m	%		**$m **	%
Listed Equities	10.10	67.7%		12.53	80.0%
Fixed Interest and Cash	4.82	32.3%		3.13	20.0%
Total Long Portfolio	14.92	100.0%		15.66	100.0%
Total Short Portfolio	(0.10)	100.0%		(0.10)	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

During the month of May we again substantially decreased our cash level to 20.0%. We established various positions including Centennial Coal Company (CEY), Australian Agricultural Company Limited (AAC), Bluescope Steel Limited (BSL), PIPE Networks Limited (PWK), Comet Ridge Limited (COI), Mortgage Choice Limited (MOC) and Aevum Limited (AVE).

We took advantage of the following placements: Australia and New Zealand Banking Group (ANZ), Primary Health Care Limited (PRY), PanAust Limited (PNA), Ausenco Limited (AAX), Hastie Group Limited (HST), Impedimed Limited (IPD), Peninsula Minerals Limited (PEN), Paragon Care Limited (PGC) and APN News & Media Limited (APN).

Positions in Fairfax Media Limited (FXJ), Henderson Group PLC (HGG), Leighton Holdings Limited (LEI), Billabong International Limited (BBG), Qantas Airways Limited (QAN), Incitec Pivot Limited (IPL) and Straits Resources Limited (SRL) were sold.

At 31 May 2009 the major securities held in the portfolio were:

CODE	COMPANY	MARKET VALUE $	MARKET VALUE as % of Long Portfolio	MARKET VALUE as % of Gross Assets
LNN	Lion Nathan Limited	1,018,725	8.1%	6.5%
MCP	McPherson's Limited	637,528	5.1%	4.1%
PBG	Pacific Brands Limited	540,857	4.3%	3.5%
FBU	Fletcher Building Limited	412,284	3.3%	2.6%
MLE	Macquarie Leisure Trust Group	386,424	3.1%	2.5%
OST	OneSteel Limited	373,156	3.0%	2.4%
RHG	RHG Limited	370,952	3.0%	2.4%
EFG	Everest Financial Group Limited	357,628	2.9%	2.3%
CEY	Centennial Coal Company Limited	342,720	2.7%	2.2%
AHE	Automotive Holdings Group Limited	341,360	2.7%	2.2%
SEK	Seek Limited	338,045	2.7%	2.2%
AAC	Australian Agricultural Company Limited	324,360	2.6%	2.1%
ABC	Adelaide Brighton Limited	323,373	2.6%	2.1%
CCQ	Contango Capital Partners Limited	300,704	2.4%	1.9%

PORTFOLIO STRUCTURE - ASSET ALLOCATION

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LONG PORTFOLIO STRUCTURE - SECTOR ALLOCATION

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PERFORMANCE TABLE

ERFORMANCE	TABLE
	Jan 08	Feb 08	Mar 08	Apr 08	May 08	Jun 08	Jul 08
Gross Portfolio*	+0.3%	+1.2%	+0.5%	+1.6%	+2.4%	-3.7%	-1.1%
All Ords Accum.	-11.2%	+0.3%	-4.1%	+4.6%	+2.5%	-7.3%	-5.2%
	Aug 08	Sep 08	Oct 08	Nov 08	Dec 08	Jan 09	Feb 09
Gross Portfolio*	+0.1%	-3.8%	-5.3%	-5.2%	+3.4%	-1.9%	+0.6%
All Ords Accum.	+4.0%	-10.6%	-13.9%	-7.2%	-0.1%	-4.9%	-4.3%
	Mar 09	Apr 09	May 09				Since Inception
Gross Portfolio*	+4.5%	+7.6%	+5.0%				+5.5%
All Ords Accum.	+8.1%	+6.1%	+2.2%				-36.5%

*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