WAM ACTIVE LIMITED — Interim / Quarterly Report 2018

May 10, 2018

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Investment update As at 30 April 2018

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wilsonassetmanagement.com.au ABN 49 126 420 719

Snapshot

Pre-tax net tangible assets

$1.08

Fully franked dividend yield 5.1%

Gross assets $46.1m

Performance (p.a. since January 2008) 12.9%

WAM Active Limited

WAM Active Limited
ASX code Date of listing Gross assets Market cap Share price (WAA)	WAA Jan 2008 $46.1m $46.1m $1.11
Option price (WAAO)	$0.006
NTA before tax	$1.08
Shares on issue	41,575,290
Options on issue	29,312,744
Annualised fully franked	5.7c
interim dividend (FY2018)

Fully franked dividend yield 5.1%

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

Geoff Wilson AO	Chairman & Portfolio
Kate Thorley	Manager Chief Executive Officer
Chris Stott	Chief Investment Officer & Portfolio Manager
Matthew Haupt	Portfolio Manager
Catriona Burns	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.

Shareholder Presentations

Hobart & Launceston	11 May
Canberra	14 May
Sydney	15 May
Brisbane Toowoomba	16 May 17 May
Perth	21 May
Adelaide	22 May
Melbourne	24 May
RESERVE YOUR PLACE NOW

WAM Global initial public offering

WAM Global launched its initial public offering (IPO) on 2 May and exceeded the minimum offer proceeds on the same day. The general and priority offers are open and expected to close on 8 June. WAM Active shareholders are eligible to take part in the $165 million priority allocation to the Wilson Asset Management Family.

Visit www.wilsonassetmanagement.com.au/global to participate in the IPO.

May 2018 Shareholder Presentations

This month, we will be travelling across the country to meet with investors about our LICs, including WAM Global. We will also discuss investment themes, trends and opportunities we are seeing across Australian and global equity markets. Lunch will be served following the presentations, so we encourage you to stay and talk to the team. Register now!

Market overview

The S&P/ASX All Ordinaries Accumulation Index gained 3.5% in April led by an increase in commodity prices following robust Chinese economic growth data, and an abatement in geopolitical risks, particularly surrounding ‘trade wars’. The International Monetary Fund maintained its positive outlook on global economic growth, forecast to be 3.9% in 2018, the best annual growth rate since 2011.

Net tangible asset (NTA) figures

The following NTA figures are after the 2.85 cents per share fully franked interim dividend paid on 27 April 2018. Since inception, WAM Active has paid 60.0 cents per share in fully franked dividends to shareholders.

NTA before tax	108.03c
NTA after tax and before tax on unrealised gains	106.86c
NTA after tax	106.84c

The above figures are not adjusted for the 29,312,744 options on issue with an exercise price of $1.14.

Performance

									Since
									inception
	Performance at	1	6	Fin	1	3 yrs	5 yrs	10 yrs	%pa
	30 April 2018	mth	mths	YTD	yr	%pa	%pa	%pa	(Jan-08)
	WAA Investment Portfolio*	1.3%	5.1%	12.9%	14.5%	13.9%	12.4%	12.9%	12.9%
	S&P/ASX All Ordinaries Accumulation Index	3.5%	3.6%	8.9%	6.4%	6.2%	7.8%	5.2%	3.8%
	Outperformance	**-2.2% **	**+1.5% **	+4.0%	**+8.1% **	**+7.7% **	**+4.6% **	+7.7%	+9.1%
	UBS Bank Bill Index (Cash)	0.2%	0.9%	1.5%	1.8%	2.0%	2.3%	3.4%	1.5%
	Outperformance	**+1.1% **	+4.2%+11.4%		**+12.7%+11.9%+10.1% **			+9.5%	+11.4%

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

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Page 2 of 4

Investment update As at 30 April 2018

wilsonassetmanagement.com.au T +61 2 9247 6755

Growth of $10,000 investment since inception

WAM Active versus the Index and Cash

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$25,000
$21,044
$20,000
$15,422
$15,000
$14,428
$10,000
$5,000
$0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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 April 2018.

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	Diversified portfolio
March 2018 April 2018 Investment type $m % $m %
Listed equities 28.5 62.5 31.2 67.6
Short portfolio (0.6) (1.4) (0.2) (0.5)
Fixed interest & cash 17.7 38.9 15.1 32.9
Gross assets $45.6 100.0 $46.1 100.0*
Total shares on issue 40,591,888 41,575,290**

*This figure is after the 2.85 cents per share fully franked interim dividend paid during the month.

**During the month, 775,846 options were exercised and allotted, and 207,556 shares were issued under the Dividend Reinvestment Plan (DRP) for the interim dividend.

WAM Active options

Your WAM Active options enable you to acquire new shares without paying brokerage fees at the price of $1.14 per share at any time on or before 17 September 2018. The options are currently trading on the ASX under the code WAAO where you have the opportunity to sell or purchase additional options. WAM Active options closed at 0.6 cents on 10 May 2018.

The bonus option issue is an effective way to grow the Company and will deliver benefits to shareholders. As the Company’s size increases, on-market 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. If you have any questions regarding your WAM Active options, please refer to the factsheet or call Alexandra Hopper on (02) 9247 6755 or email info@wilsonassetmanagement.com.au.

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wilsonassetmanagement.com.au Page 3 of 4 T +61 2 9247 6755

Investment update As at 30 April 2018

Top 20 holdings

Top 20 holdings
Code Company APO APN Outdoor Group Limited ARB ARB Corporation Limited ALL Aristocrat Leisure Limited ASB Austal Limited AOG Aveo Group BGA Bega Cheese Limited CSL CSL Limited JHX James Hardie Industries Plc MTR Mantra Group Limited PPC Peet Limited	Code Company
	PIA Pengana International Equities Limited
	QBE QBE Insurance Group Limited
	REA REA Group Limited
	SCG Scentre Group
	SVW Seven Group Holdings Limited
	SRX Sirtex Medical Limited
	TGG Templeton Global Growth Fund Limited
	TGP 360 Capital Group Limited
	WDE Wealth Defender Equities Limited
	WBC Westpac Banking Corporation

The top 20 holdings are presented in alphabetical order.

Fully franked dividends

On 27 April 2018, the Company paid a fully franked interim dividend of 2.85 cents per share, an increase on the previous year. 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 2017/18
Fully franked dividends Return of capital
Annualised interim dividend
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Page 4 of 4

Investment update As at 30 April 2018

wilsonassetmanagement.com.au T +61 2 9247 6755