AI assistant
WAM ACTIVE LIMITED — Interim / Quarterly Report 2012
May 3, 2012
66032_rns_2012-05-03_39a7f893-27c9-4e7e-9b29-eee2c75b0fe2.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
==> picture [154 x 109] intentionally omitted <==
WAM ACTIVE LIMITED (WAA) ABN 49 126 420 719
INVESTMENT UPDATE & NTA – APRIL 2012
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. 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, WAA has outperformed the overall sharemarket. The strong performance of the investment portfolio against the S&P/ASX All Ordinaries Accumulation Index is set out in the table below. The performance relates to the investments and excludes expenses and taxes.
| Performance as at 30 April 2012 |
1 Mth % |
6 Mths % |
Fin Ytd % |
1 Year % |
2 Yrs %pa |
3 Yrs %pa |
Since Inception (Jan-08) %pa |
|---|---|---|---|---|---|---|---|
| WAA Investment Portfolio S&P/ASX All Ordinaries Accumulation Index Outperformance |
+0.0% +1.1% -1.1% |
+4.3% +4.7% -0.4% |
+6.1% -0.4% +6.5% |
+2.1% -4.6% +6.7% |
+6.1% +0.3% +5.8% |
+17.4% +10.5% +6.9% |
+11.9% -4.0% +15.9% |
The following NTA figures are after the payment of a fully franked interim dividend of 4.5 cents per share paid on the 24 April 2012.
| NTA before tax | 107.35c |
|---|---|
| NTA after tax and before tax on unrealised gains | 108.62c* |
| NTA after tax | 107.17c** |
- Includes tax assets of 1.27 cents per share.
**Includes the net effect of 1.27 cents of tax assets and 1.45 cents of deferred tax liabilities.
1
Market Outlook
April saw a continuation of the positive trend in the Australian equity market with the S&P/ASX All Ordinaries Accumulation Index rising 1.1% for the month. Volatility remained a constant theme with the European sovereign debt crisis. The UK economy officially entered another recession and Spain’s unemployment moved closer to 25% - depression like levels.
In April, the market had to contend with the start of the “confession season” as earnings downgrades came at a ferocious pace. The downgrades reflected the continued weakness in the non-mining economy. We expect a continuation of earnings downgrades in the coming month. Consumers continue to deleverage which will continue to put pressure on the retail and housing sectors.
A benign inflation figure in April allowed the Reserve Bank to cut interest rates by 0.5% in early May. We believe this rate cut will ultimately be a positive for the market. A succession on regular rate cuts is needed to stimulate the non-mining economy. Lower interest rates lead to an expansion of price to earnings ratios, an increase in economic and corporate activity, and a flow of funds from fixed interest to the equity market.
Dividends
On 24 April 2012, the Company paid a fully franked interim dividend of 4.5 cents per share. This is a 12.5% increase on the prior year’s interim dividend.
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. It must also comply with Government legislation and the ATO’s interpretation of a company’s ability to pay franked dividends. Dividends are paid on a six-monthly basis.
Providing the Company is deemed solvent by the Board, the Company should always be in a position to pay dividends. As at 30 April 2012, the Company has franking credits which allow it to pay a dividend equivalent to 6.6 cents per share. This is after the payment of the interim dividend.
==> picture [444 x 260] intentionally omitted <==
----- Start of picture text -----
* Annualised interim dividend
----- End of picture text -----
2
Portfolio Structure
| As at 31 Mar 2012 | As at 31 Mar 2012 | As at 30 Apr 2012 | As at 30 Apr 2012 | ||
|---|---|---|---|---|---|
| Investment Type | **$m ** | % | $m % |
||
| Listed Equities | 10.8 | 58.4% | 7.8 | 42.6% | |
| Fixed Interest and Cash | 7.7 | 41.6% | 10.5 | 57.4% | |
| Total Long Portfolio | 18.5 | 100.0% | 18.3 | 100.0% | |
| Total Short Portfolio | (0.0) | (0.5) | |||
| Total Fund Size | $18.5m | $17.8m* | |||
| No. | No. | ||||
| Total ordinary shares on issue | 16,176,213 | 16,309,945 |
- This is after the payment of the 4.5 cents per share fully franked interim dividend during the month.
At 30 April 2012 the major securities held in the portfolio were:
| Code | Company | Market Value $ |
Market Value as % Gross Assets |
|---|---|---|---|
| CCQ | Contango Capital Partners Limited | 567,347 | 3.1% |
| LDW | Ludowici Limited | 510,508 | 2.8% |
| EPX | Ethane Pipeline Income Fund | 447,887 | 2.4% |
| SDG | Sunland GroupLimited | 419,779 | 2.3% |
| ILF | ING Real Estate CommunityLivingGroup | 402,067 | 2.2% |
| AIX | Australian Infrastructure Fund | 384,229 | 2.1% |
| CLO | Clough Limited | 363,953 | 2.0% |
| CYG | CoventryGroupLimited | 350,307 | 1.9% |
| RHG | RHG Limited | 295,677 | 1.6% |
| MIO | Miclyn Express Offshore Limited | 294,715 | 1.6% |
| IIN | iiNet Limited | 253,380 | 1.4% |
| CMIPC | CMI Limited Conv Pref Class A | 251,815 | 1.4% |
| CBAPB | CBA Perpetual Exc Resale Listed Sec - PERLS IV | 250,299 | 1.4% |
| SPL | Starpharma Holdings Limited | 212,694 | 1.2% |
| MMX | Murchison Metals Limited | 204,216 | 1.1% |
| CND | Clarius GroupLimited | 194,342 | 1.1% |
| API | Australian Pharmaceutical Industries Limited | 184,860 | 1.0% |
| CIF | Challenger Infrastructure Fund | 173,745 | 0.9% |
| TGP | Trafalgar Corporate Group | 170,552 | 0.9% |
| NFK | Norfolk GroupLimited | 169,425 | 0.9% |
3
Portfolio Structure – Asset Allocation
==> picture [443 x 228] intentionally omitted <==
Portfolio Structure - Sector Allocation
==> picture [470 x 268] intentionally omitted <==
4
Performance
Set out below is the performance of WAA’s investment portfolio since listing to 30 April 2012 on a financial year basis. The performance data is 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.
| Financial Year | Gross Portfolio |
S&P/ASX All Ordinaries Accumulation Index |
Outperformance |
|---|---|---|---|
| 2007/2008 2008/2009 2009/2010 2010/2011 YTD 2011/2012 |
+2.2% +9.6% +22.7% +11.5% +6.1% |
-15.2% -22.2% +13.8% +12.2% -0.4% |
+17.4% +31.8% +8.9% -0.7% +6.5% |
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 | Oct 11 | Nov 11 | Dec 11 | Jan 12 | |
| Gross Portfolio* | +0.0% | -1.2% | +0.7% | +2.1% | -0.4% | -1.0% | +1.0% |
| All Ords Accum. | -3.4% | -2.0% | -6.3% | +7.2% | -3.4% | -1.6% | +5.2% |
| Feb 12 | Mar 12 | Apr 12 | Since Inception |
||||
| Gross Portfolio* | +3.5% | +1.1% | +0.0% | +62.5% | |||
| All Ords Accum. | +2.4% | +1.2% | +1.1% | -16.1% |
*The change in the portfolio before all expenses, fees and taxes.
5
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