WAM ACTIVE LIMITED — Interim / Quarterly Report 2018

Dec 13, 2017

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Investment update As at 30 November 2017

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Snapshot

Pre-tax net tangible assets

Gross assets

$1.09 $45.3m

wilsonassetmanagement.com.au ABN 49 126 420 719

Fully franked dividend yield 4.9%

Performance (p.a. since January 2008) 13.1%

WAM Active Limited

Market overview

WAM Active Limited
ASX code Date of listing Gross assets	WAA Jan 2008 $45.3m
Market cap	$45.3m
Share price (WAA)	$1.125
Option price (WAAO)	$0.021
NTA before tax	$1.09
Shares on issue	40,268,018
Options on issue	30,412,460
Fully franked dividends	5.5c
(FY2017)

The S&P/ASX All Ordinaries Accumulation Index closed up 1.9% for the month.

During November the Index pushed through the 6,000 point mark for the first time since the global financial crisis, largely driven by the energy and mining sectors. The NAB Business survey reported yet another strong outcome in October 2017, with conditions soaring to an all-time high. In contrast, the Westpac-Melbourne Institute index of consumer sentiment registered a 1.7% fall in November 2017. Data from the Australian Bureau of Statistics (ABS) reported Australia’s unemployment rate fell to a near fiveyear low.

Fully franked dividend yield 4.9%

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

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.

November 2017 Shareholder Presentations

Thank you to those who attended our Shareholder Presentations, we greatly enjoyed the opportunity to meet over 3,000 of our shareholders. If you were unable to attend, you can access the full recording of our Sydney presentation and the presentation slides, also available on our website.

Net tangible asset (NTA) figures

NTA before tax	109.17c
NTA after tax and before tax on unrealised gains	107.52c
NTA after tax	107.52c

The above figures are not adjusted for the 30,412,460 options on issue with an exercise price of $1.14.

Performance

								Since
								Inception
	Performance at	1	Fin	6	1	3 Yrs	5 Yrs	%pa
	30 November 2017	Mth	YTD	Mths	Yr	%pa	%pa	(Jan-08)
	WAA Investment Portfolio*	1.5%	9.1%	10.3%	14.0%	14.7%	14.2%	13.1%
	S&P/ASX All Ordinaries Accumulation Index	1.9%	7.1%	7.4%	14.8%	9.2%	10.7%	3.8%
	Outperformance	-0.4%	**+2.0% **	+2.9%	-0.8%	+5.5%	+3.5%	+9.3%
	UBS Bank Bill Index (Cash)	0.1%	0.7%	0.9%	1.8%	2.1%	2.4%	3.6%
	Outperformance	+1.4%	**+8.4% **	+9.4%	**+12.2% **	**+12.6% **	+11.8%	+9.5%

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

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Page 2 of 4

Investment update As at 30 November 2017

wilsonassetmanagement.com.au T +61 2 9247 6755

Growth of $10,000 investment since inception

WAM Active versus the Index

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$25,000
$20,783
$20,000
$15,165
$15,000
$14,321
$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 30 November 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
		October 2017			November 2017
Investment type	$m		%	$m			%
Listed equities	36.0		80.9	36.1			79.9
Short portfolio	(0.4)		(1.0)	(0.4)			(1.0)
Fixed interest & cash	8.9		20.1	9.6			21.1
Gross assets	$44.5		100.0	$45.3			100.0
Total shares on issue		40,132,177			40,268,018*

*During the month, 135,841 options were exercised and allotted.

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 30 November 2017

wilsonassetmanagement.com.au T +61 2 9247 6755

Top 20 holdings

Top 20 holdings
Code Company HHV Hunter Hall Global Value Limited NEC Nine Entertainment Co. Holdings Limited SVW Seven Group Holdings Limited TGG Templeton Global Growth Fund Limited PTM Platinum Asset Management Limited MMS McMillan Shakespeare Limited PRY Primary Healthcare Limited TAH Tabcorp Holdings Limited GUD GUD Holdings Limited TGP 360 Capital Group Limited	Code Company
	MND Monadelphous Group Limited
	HSO Healthscope Limited
	LNK Link Administration Holdings Limited
	EHE Estia Health Limited
	WDE Wealth Defender Equities Limited
	ARB ARB Corporation Limited
	GTY Gateway Lifestyle Group
	PPC Peet Limited
	JHG Janus Henderson Group Plc
	WPL Woodside Petroleum Limited

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 30 November 2017

wilsonassetmanagement.com.au T +61 2 9247 6755