WAM ACTIVE LIMITED — Investor Presentation 2009

Nov 17, 2009

WAM ACTIVE LIMITED (WAA) A.B.N. 49 126 420 719

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PRESENTATION

Summary

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WAM Active trades in Australian stocks. The objective is to take advantage of opportunities such as capital raisings, underwritings, takeovers arbitrages and stock sell downs.

WAM Active aims to pay an increasing stream of fully franked dividends and protect shareholder capital. The company has maximum flexibility to achieve this goal.

WAM Active is a new company, listing in January 2008. The board’s objective in the coming years is to grow the size of the company from its current size of approximately $20m to $100m within 5 years.

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Management’s Competitive Advantage

The Wilson Asset Management team offers investors the following advantages:

1. A flat structure that delivers quick decision making;

2. A nimble investment process due to the relatively small funds under management;

3. Closed end funds avoiding the problem of being forced sellers and buyers at inappropriate times;

4. A precise bottom up approach that involves staying very close to the market and the investee companies;

5. A broad coverage of a range of industries, especially at the small to medium end of the market;

6. An aversion to risk with above average cash positions; and

Performance

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%
50
40
30
20
10
0
-10
-20
-30
-40
-50
-60
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WAM Active Limited - Gross Portfolio before all expenses, fees, taxes and dividends

Performance (cont.)

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Since Inception to 31 October 2009 WAM Active NTA Performance +31.1% All Ordinaries Accumulation Index -21.3%

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DIVIDENDS

Dividends

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• Maiden fully franked dividend of 2.0 cents per share paid on 20 July 2009.

• Intension is to pay an increasing fully franked dividend stream over time.

• Dividends are only payable from retained earnings or current year’s profits of the company.

• Traders profit is impacted by changes in the value of the portfolio either positive or negative.

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NTA & SHARE PRICE

NTA and Share Price

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As at 31 October 2009	Cents	Discount
Pre-tax NTA	125.5	20.3%
After-tax NTA	118.1	15.3%
Share Price*	100.0

• As at close of trading 17 November 2009

NTA & Share Price History

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1.25
1.15
1.05
0.95
0.85
0.75
0.65
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STOCK SELECTION

Portfolio Structure

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	As at 31 October 2009	As at 31 October 2009
Investment Type	$m	%
Listed Equities	14.42	69
Term Deposits and Cash	6.40	31
Total Long Portfolio	20.82	100
Total Short Portfolio	(0.01)
	No.

TOP 10 TRADING STOCKS as at 31 October 2009

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Code	Company	Market Value $	% of Long Portfolio
MCP	McPherson’s Ltd	$931,057	6.5%
TLS	Telstra Corporation Ltd *	$632,493	4.4%
SKE	Skilled Group Ltd	$458,998	3.2%
FXL	Flexigroup Ltd	$456,616	3.2%
HBSHA	Heritage Building Society Ltd Notes	$411,279	2.9%
RHG	RHG Ltd	$407,403	2.8%
VBA	Virgin Blue Holdings Ltd	$404,773	2.8%
NAB	National Australia Bank Ltd	$397,005	2.8%
QBE	QBE Insurance Group Ltd	$387,090	2.7%

Best Performing Stocks 16 months to 31 October 2009

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Code	Company	Unrealised/Realised Gains
MCP	McPherson's Ltd	$771,292
RHG	RHG Ltd	$452,481
PBG	Pacific Brands Ltd	$428,886
FXL	FlexiGroup Ltd	$364,316
OKN	Oakton Ltd	$328,983

Worst Performing Stocks 16 months to 31 October 2009

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Code	Company	Unrealised/Realised Gains
MQG	Macquarie Group Ltd	-$198,899
ALZ	Australand Property Group	-$153,215
HGG	Henderson Group PLC.	-$112,140
ASX	ASX Ltd	-$110,835
KBC	Keybridge Capital Ltd	-$99,682

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Virgin Blue (VBA)

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Virgin Blue
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• Company visit – market

• capitalisation

• Capital raising @ $0.20

• Fixed cost base

• Leverage to the economy

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$2.40
$2.00
$1.60
$1.20
$0.80
$0.40
$-
2004 2005 2006 2007 2008 2009
VBA share price
Price
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Clive Peeters (CPR)

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• Legacy issues

• Adjusted NTA = $0.27

• Cost reductions

• Retailer in turnaround mode

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Clive Peeters Limited
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$-
2005 2006 2007 2008 2009
Price
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CPR share price
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MARKETS

Dow Jones Industrial Index – Monthly

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: All Ordinaries Index – Monthly 1968-1982 (Logarithmic) “1970’s Bear Market” - Australia

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Dow Jones Industrial Index – Monthly: 1968-1982 (Logarithmic) “1970’s Bear Market” - US

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All Ordinaries Index – Monthly: 1982-1994 (Logarithmic) “1987 Crash & Bear Market” - Australia

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All Ordinaries Index – Monthly (Logarithmic)

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Dow Jones Industrial Index – Monthly (Logarithmic)

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Australia All Ordinaries Index: 10 years

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US S&P 500 Index 10 years

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ASX300 Prospective PER Rolling 12 Months Forward

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22
20
18
+1 Std Dev
16
Average: 15.1
14
-1 Std Dev
12
10
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ASX200 Industrials Prospective PER Rolling 12 Months Forward

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22
20
18
16
Average: 14.5
14 Average: 13.9
12
10
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All Industrials Valuation of Equities relative to Bonds

MULTIPLE OF BOND YIELD TO EQUITY EARNINGS YIELDS

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MULTIPLE
1.6
EQUITIES RELATIVELY OVERVALUED
1.4
1.2
+1 Std Dev
1.0
Average
0.8
-1 Std Dev
0.6
EQUITIES RELATIVELY UNDERVALUED
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Shareholder Communication

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• Website updated

• www.wilsonassetmanagement.com.au

• Audio cast

• Presentations

• Investor Report

• Monthly Investment Update & NTA

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QUESTIONS?

Disclaimer

This presentation has been prepared for use in conjunction with a verbal presentation and should be read in that context.

Information for the graphs, charts and quoted indices contained in this presentation has been sourced from IRESS Market Technology and WAM Capital Ltd, Wilson Investment Fund Ltd and WAM Active Limited unless otherwise stated.

The information in this presentation is only intended for Australian residents.

The presentation purpose is only to provide information and does not purport to give investment advice. We strongly suggest that investors consult a financial adviser prior to making any investment decision.

The presentation does not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making investment, financial or other decisions. The information is selective and may not be complete or accurate for your particular purposes and should not be construed as a recommendation to invest in any particular investment or security, or Fund offered by Wilson Asset Management.

The information provided in the presentation is given in good faith and is believed to be accurate at the time of compilation. Neither Wilson Asset Management nor its director or employees make any representation or warranty as to the accuracy, reliability, timeliness or completeness of the information. To the extent permissible by law, Wilson Asset Management and its director and employees disclaim all liability (whether arising in contract, tort, negligence or otherwise) for any error, omission, loss or damage (whether direct, indirect, consequential or otherwise).

Performance figures quoted in the report are past performance. Past performance is not an indicator of future performance. Neither Wilson Asset Management nor its director or employees guarantee or make any representation as to the performance of the Funds, the maintenance or repayment of capital, the price at which shares may trade or any particular rate of return.

Copyright & Trademarks

All content included in this report is protected by copyright laws. You may only use this material for your own personal reference. You must not otherwise use, reproduce, publish, modify, distribute, link, frame, transmit in any form or by any means, electronic or mechanical, for any purpose, any of the material in this report, except with the prior written permission of Wilson Asset Management.