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WAM ACTIVE LIMITED — Interim / Quarterly Report 2012
Oct 13, 2011
66032_rns_2011-10-13_ff02975d-c6f9-4f89-bc42-558b7b9c8735.pdf
Interim / Quarterly Report
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WAM ACTIVE LIMITED (WAA) ABN 49 126 420 719 INVESTMENT UPDATE & NTA – SEPTEMBER 2011
WAM Active Limited (WAA) offers investors exposure to an active trading style with the aim of achieving a sound return with a low correlation to traditional markets. Since inception WAA has outperformed the overall sharemarket. WAA’s portfolio (before all fees, costs, taxes and dividends) has increased by 52.5% compared to a decline of 25.3% in the S&P/ASX All Ordinaries Accumulation Index. The investment objectives are to deliver investors a growing income stream in the form of fully franked dividends and to preserve capital in both the short term and long term.
| Since Inception (Jan–08) %pa |
||||||
|---|---|---|---|---|---|---|
| Performance as at 30 September 2011 |
||||||
| 1 Mth % |
6 Mths % |
Fin Ytd % |
1 Year % |
2 Yrs %pa |
||
| WAM Active Limited S&P/ASX All Ordinaries Accumulation Index Outperformance* |
+0.7% -6.3% +7.0% |
-1.8% -15.5% +13.7% |
-0.4% -11.3% +10.9% |
+6.2% -8.4% +14.6% |
+4.3% -3.3% +7.6% |
+11.9% -7.5% +19.4% |
*The change in the gross portfolio before all expenses, fees and taxes.
The following NTA figures are after the payment of a fully franked final dividend of 4.0 cents per share paid on 30 September 2011.
| The following NTA figures are after the payment of a fully franked cents per share paid on 30 September 2011. |
final dividend of 4.0 |
|---|---|
| NTA before tax | 107.33c |
| NTA after tax and before tax on unrealised gains | 108.88c* |
| NTA after tax | 108.08c** |
- Includes tax assets of 1.55 cents per share.
**Includes the net effect of 1.55 cents of tax assets and 0.80 cents of deferred tax liabilities.
Market Outlook
The Australian market continued its downward trajectory with September producing the sixth straight month of negative returns. The S&P/ASX All Ordinaries Accumulation Index closed the month down 6.3% with investors continuing to grapple with slowing economic growth globally. Focus was once again centered on Europe and the potential solutions being proposed to resolve the financial crisis, in particular stopping Greece defaulting. We continue to expect a prolonged period of deleveraging globally over the next few years.
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Market Outlook (continued)
Locally, the Reserve Bank minutes in October have indicated a high probability of a cut in interest rates on Melbourne Cup day. If this scenario plays out, we believe this could be positive for industrial earnings growth over the next 1-2 years. In the meantime, we expect the equity markets will continue to be led by offshore events in Europe and the US. As such, we remain cautious with higher than average cash levels.
Dividends
On 30 September 2011, the Company paid a fully franked final dividend of 4.0 cents per share. This brings the full year dividend to 8.0 cent per share fully franked.
The Board is committed to paying an increasing stream of fully franked dividends to shareholders provided the company has sufficient franking credits, and it is within prudent business practices. Dividends are paid on a six-monthly basis.
Government legislation introduced in June 2010 now enables companies to pay dividends if the company is deemed solvent. Dividend payments will be made with consideration to cash flow, cash holdings and available franking credits. Essentially, WAM Active will always be in a position to pay dividends providing it is solvent.
Portfolio Structure
| As at 31 Aug 2011 | As at 31 Aug 2011 | As at 31 Aug 2011 | As at 31 Aug 2011 | ||
|---|---|---|---|---|---|
| Investment Type | $m % |
$m % |
|||
| ListedEquities | 5.9 | 32.3% | 6.3 | 35.9% | |
| Fixed Interest and Cash | 12.3 | 67.7% | 11.2 | 64.1% | |
| Total Long Portfolio | 18.2 | 100.0% | 17.5 | 100.0% | |
| Total Short Portfolio | (0.3) | (0.0) | |||
| Total Fund Size | $17.9m | $17.5m | |||
| No. | No. | ||||
| Total ordinary shares on issue | 16,066,653 | 16,176,213 |
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At 30 September 2011 the major securities held in the portfolio were:
| Market Value as % Gross Assets |
|||
| Market Value $ |
|||
| Code | Company | ||
| SGI | Signature Capital Investments Limited | 1,139,736 | 6.5% |
| CNA | Coal & Allied Industries Limited | 808,289 | 4.6% |
| DKN | DKN FinancialGroupLimited | 560,475 | 3.2% |
| CCQ | Contango Capital PartnersLimited | 502,326 | 2.9% |
| TLS | Telstra Corporation Limited | 281,821 | 1.6% |
| SOE | SoulsPrivateEquityLimited | 275,251 | 1.6% |
| SYM | Symex HoldingsLimited | 249,082 | 1.4% |
| SDG | Sunland Group Limited | 229,500 | 1.3% |
| MSF | Maryborough Sugar Factory Limited (The) | 206,711 | 1.2% |
| CYG | Coventry Group Limited | 186,718 | 1.1% |
| FXJ | Fairfax Media Limited | 179,438 | 1.0% |
| RHG | RHG Limited | 174,810 | 1.0% |
| IMFG | IMF (Australia) Ltd 10.25% Sec Red Conv Note | 146,338 | 0.8% |
| ROK | Rock Building Society Limited (The) | 115,662 | 0.7% |
| TGP | TrafalgarCorporate Group | 108,002 | 0.6% |
| RCR | RCR Tomlinson Limited | 99,750 | 0.6% |
| UXC | UXCLimited | 95,991 | 0.5% |
| MFNHA | Macquarie Fortress Australia Notes Trust Series 1 FloatingRateNote |
93,840 | 0.5% |
| EFG | EverestFinancialGroupLimited | 92,388 | 0.5% |
| NBL | Noni B Limited | 91,769 | 0.5% |
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Portfolio Structure – Asset Allocation
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Long Portfolio Structure - Sector Allocation
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Performance
Set out below is the performance of WAA since listing to September 2011 on a financial year basis. The performance data before all expenses, fees and taxes and is used as a guide to how the company’s investment portfolio has performed against the S&P/ASX All Ordinaries Accumulation Index which is also a before tax and expenses measure.
| S&P/ASX All Ordinaries Accumulation Index |
|||
| Financial Year | Gross Portfolio |
Outperformance | |
| 2007/2008 2008/2009 2009/2010 2010/2011 YTD 2011/2012 |
+2.2% +9.6% +22.7% +11.5% -0.4% |
-15.2% -22.2% +13.8% +12.2% -11.3% |
+17.4% +31.8% +8.9% -0.7% +10.9% |
Monthly Performance 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 | Jun 09 | July 09 | Aug 09 | Sep 09 | |
| Gross Portfolio* | +4.5% | +7.6% | +5.0% | +6.2% | +9.6% | +7.5% | +6.2% |
| All Ords Accum. | +8.1% | +6.1% | +2.2% | +3.9% | +7.7% | +6.5% | +6.0% |
| Oct 09 | Nov 09 | Dec 09 | Jan 10 | Feb 10 | Mar 10 | Apr 10 | |
| Gross Portfolio* | +2.1% | +0.3% | +1.0% | -3.6% | +0.0% | +2.9% | +0.4% |
| All Ords Accum. | -1.9% | +1.9% | +3.7% | -5.8% | +1.8% | +5.8% | -1.2% |
| May 10 | Jun 10 | Jul 10 | Aug 10 | Sep 10 | Oct 10 | Nov 10 | |
| Gross Portfolio* | -4.0% | -0.9% | +1.6% | +0.1% | +2.7% | +1.3% | +2.3% |
| All Ords Accum. | -7.6% | -2.6% | +4.2% | -0.7% | +5.0% | +2.2% | -0.7% |
| Dec 10 | Jan 11 | Feb 11 | Mar 11 | Apr 11 | May 11 | Jun 11 | |
| Gross Portfolio* | +3.6% | +0.7% | -0.3% | +0.4% | +2.5% | -1.6% | -2.3% |
| All Ords Accum. | +3.8% | +0.1% | +2.2% | +0.6% | -0.6% | -1.9% | -2.4% |
| Jul 11 | Aug 11 | Sep 11 | Since Inception |
||||
| Gross Portfolio* | +0.0% | -1.2% | +0.7% | +52.5% | |||
| All Ords Accum. | -3.4% | -2.0% | -6.3% | -25.3% |
*The change in the portfolio before all expenses, fees and taxes
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For further information please contact Geoff Wilson or Chris Stott. 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 | [email protected] | www.wamfunds.com.au