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WAM ACTIVE LIMITED — Net Asset Value 2011
Jun 9, 2011
66032_rns_2011-06-09_fbe29f39-6cc8-44e8-a40f-306556351aed.pdf
Net Asset Value
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WAM ACTIVE LIMITED (WAA) ABN 49 126 420 719 INVESTMENT UPDATE & NTA – MAY 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 56.7% compared to a decline of 13.7% 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.
| Performance as at 31 May 2011 |
1 Mth % |
6 Mths % |
Fin Ytd % |
1 Yr % |
2 Yrs %pa |
Since Inception %pa (Jan–08) |
|---|---|---|---|---|---|---|
| WAM Active Limited S&P/ASX All Ordinaries Accumulation Index Outperformance* |
-1.6% -1.9% +0.3% |
+5.3% +4.2% +1.1% |
+14.1% +14.9% -0.8% |
+13.1% +11.9% +1.2% |
+21.9% +16.6% +5.3% |
+14.1% -4.2% +18.3% |
*The change in the gross portfolio before all expenses, fees and taxes.
The following NTA figures are after the payment of an interim dividend of 4.0 cents per share fully franked paid on 31 March 2011.
| NTA before tax | 115.08c |
|---|---|
| NTA after tax and before tax on unrealised gains | 113.08c |
| NTA after tax | 112.00c |
Market Outlook
The Australian equity market continued its downward trend in May with the S&P/ASX All Ordinaries Accumulation Index finishing down 1.9%. Commodity prices remained weaker as concerns emerged over Chinese growth from the monetary policy tightening in that market of the last 6-12 months. The Small Resources Index here in Australia is now down 18% from its recent peak in February 2011 at the time of writing.
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Market Outlook (continued)
Questions are also now being asked whether the US economic recovery remains on track given the raft of soft economic data we have seen in recent times. The conclusion of the Federal Reserve’s quantitative easing program in coming weeks will provide a good test for equity markets.
In Australia, the RBA continues to see upside to interest rates to combat medium term inflation risks driven by our two speed economy. Further interest rate hikes in Australia will dampen growth expectations for the small industrials over the next 12 months. We note current market forecasts of >15% EPS growth in this sector looks too high. We remain cautious on the Australian equity market and continue to research for individual stock opportunities as they arise.
Dividends
On 31 March 2011 the company paid an interim dividend of 4.0 cents per share fully franked. This is a 33% increase on the interim dividend from the previous year.
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 not be reliant on reported profit and retained earnings as it was previously. Rather it will be with consideration to cash flow, cash holdings and available franking credits.
Portfolio Structure
| As at 30 Apr 2011 | As at 30 Apr 2011 | As at 31 May 2011 | As at 31 May 2011 | ||
|---|---|---|---|---|---|
| Investment Type | $m % |
$m % |
|||
| Listed Equities | 12.6 | 61.8% | 10.0 | 51.9% | |
| Fixed Interest and Cash | 7.8 | 38.2% | 9.3 | 48.1% | |
| Total Long Portfolio | 20.4 | 100.0% | 19.3 | 100.0% | |
| Total Short Portfolio | (1.0) | (0.2) | |||
| Total Fund Size | $19.4m | $19.1m | |||
| No. | No. | ||||
| Total ordinary shares on issue | 16,066,499 | 16,066,653 |
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Portfolio Structure (continued)
At 31 May 2011 the major securities held in the portfolio were:
| Code | Company | Market Value $ |
Market Value as % Gross Assets |
|---|---|---|---|
| SGI | Signature Capital Investments Limited | 1,018,507 | 5.3% |
| AUN | Austar United Communications Limited | 761,790 | 4.0% |
| TLS | Telstra Corporation Limited | 552,660 | 2.9% |
| MSF | Maryborough Sugar Factory Limited (The) | 544,221 | 2.9% |
| SPL | Starpharma Holdings Limited | 474,000 | 2.5% |
| CCP | Credit Corp Group Limited | 470,276 | 2.5% |
| SYM | Symex Holdings Limited | 389,514 | 2.0% |
| BHP | BHP Billiton Limited | 365,704 | 1.9% |
| ANZ | Australia and New Zealand Banking Group Limited | 364,149 | 1.9% |
| WBC | Westpac Banking Corporation | 361,826 | 1.9% |
| NAB | National Australia Bank Limited | 361,055 | 1.9% |
| TSI | Transfield Services Infrastructure Fund | 346,792 | 1.8% |
| CCQ | Contango Capital Partners Limited | 330,763 | 1.7% |
| PBG | Pacific Brands Limited | 268,125 | 1.4% |
| PRR | Prima Biomed Limited | 220,320 | 1.2% |
| VRL | Village Roadshow Limited | 190,316 | 1.0% |
| RVA | Reva Medical Inc | 187,499 | 1.0% |
| RHG | RHG Limited | 168,097 | 0.9% |
| OTH | On The House Limited | 165,000 | 0.9% |
| INQ | Investorfirst Limited | 158,700 | 0.8% |
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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 May 2011 on a financial year basis. The performance data excludes 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 YTD 2010/2011 |
+2.2% +9.6% +22.7% +14.1% |
-15.2% -22.2% +13.8% +14.9% |
+17.4% +31.8% +8.9% -0.8% |
*The change in the portfolio before all expenses, fees and taxes.
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 | Since Inception |
|
| Gross Portfolio* | +3.6% | +0.7% | -0.3% | +0.4% | +2.5% | -1.6% | +56.7% |
| All Ords Accum. | +3.8% | +0.1% | +2.2% | +0.6% | -0.6% | -1.9% | -13.7% |
- *The change in the portfolio before all expenses, fees and taxes
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For further information please contact Geoff Wilson, Matthew Kidman, Chris Stott or Martin Hickson. 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