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WAM ACTIVE LIMITED — Net Asset Value 2012
Nov 13, 2012
66032_rns_2012-11-13_81a22aab-b4ec-4ee3-ac34-1f347a5e0b1e.pdf
Net Asset Value
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WAM ACTIVE LIMITED (WAA) ABN 49 126 420 719 INVESTMENT UPDATE & NET TANGIBLE ASSETS REPORT OCTOBER 2012
Company overview
WAM Active Limited (WAA) is a listed investment company that provides investors exposure to an active trading style with the aim of achieving a sound return with a low correlation to traditional markets.
Investment objective
The investment objectives are to deliver investors a growing income stream in the form of fully franked dividends and to preserve capital.
Outperformance against sharemarket
Since inception, the WAA investment portfolio has outperformed the overall sharemarket – its performance against the S&P/ASX All Ordinaries Accumulation Index is set out in the table below. The investment performance is before expenses, fees and taxes.
| Performance as at 31 October 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 |
+1.9% +3.0% -1.1% |
+6.2% +4.0% +2.2% |
+6.7% +11.4% -4.7% |
+10.8% +8.9% +1.9% |
+8.9% +2.3% +6.6% |
+6.4% +3.5% +2.9% |
+11.9% -2.8% +14.7% |
Net Tangible Asset (NTA) figures
The following NTA figures are after the payment of a fully franked final dividend of 4.5 cents per share paid on the 19 October 2012. The figures below have not been adjusted for the 13,058,342 remaining options on issue with an exercise price of $1.08 per share.
per share. |
|
|---|---|
| NTA before tax | 106.55c |
| NTA after tax and before tax on unrealised gains | 107.94c* |
| NTA after tax | 105.82c** |
- Includes tax assets of 1.39 cents per share.
**Includes the net effect of 1.39 cents of tax assets and 2.12 cents of deferred tax liabilities.
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WAM Active Limited| ABN 49 126 420 719 Phone 02 9247 6755 | Fax 02 9247 6855 | [email protected] | www.wamfunds.com.au
Market outlook
Market up again
The ASX S&P All Ordinaries Accumulation Index finished up 2.97% for October. This was its 5th consecutive positive month. It has also now registered 9 positive months in the last 10. Another 0.25% interest rate cut by the RBA and the expectation of further cuts helped drive the market higher.
Merger and acquisition activity heats up
A low interest rate environment is conducive to merger and acquisition activity, as we have mentioned previously. This month a plethora of deals were announced with takeover or merger talks involving Arrium, Discovery Metals, Graincorp, WHK Group and SFG Australia. We believe this trend will continue as more interest cuts are delivered by the RBA during FY13.
Downgrades leak out
Downgrades have been announced from companies such as Harvey Norman, SMS Management and Technology, QBE Insurance Group and Origin Energy, representing varying sectors of the economy. November is a key time for AGMs and we expect further downgrades to be revealed at these meetings. The feedback we continue to receive from companies is that trading conditions remain challenging.
Dividends – 4.5 cents per share fully franked final
On 19 October 2012, the Company paid a fully franked final dividend of 4.5 cents per share. This is a 12.5% increase on the previous year’s final 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. Dividend payments will also be made with consideration to cash flow and cash holdings.
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WAM Active Limited| ABN 49 126 420 719 Phone 02 9247 6755 | Fax 02 9247 6855 | [email protected] | www.wamfunds.com.au
Option issue – 1 for 1 bonus issue
On 4 May 2012, the Board announced a 1 for 1 bonus issue of options to acquire ordinary shares in the capital of the Company. The options were allotted to shareholders on 25 June 2012. The options have an exercise price of $1.08 per share and can be exercised at any time on or before 12 December 2013. The options are currently trading on the ASX under the code WAAO.
As at 31 October 2012, 3,251,603 options have been exercised for a total consideration of $3,511,731 with a remaining balance of outstanding options being 13,058,342.
Portfolio structure
| As at 30 Sep 2012 | As at 30 Sep 2012 | As at 31 Oct 2012 | As at 31 Oct 2012 | ||
|---|---|---|---|---|---|
| Investment Type | $m % |
$m % |
|||
| Listed Equities | 11.6 | 57.3% | 15.8 | 73.3% | |
| Fixed Interest and Cash | 8.6 | 42.7% | 5.8 | 26.7% | |
| Total Long Portfolio | 20.2 | 100.0% | 21.6 | 100.0% | |
| Total Short Portfolio | (0.3) | (1.7%) | (0.2) | (1.0%) | |
| Total Fund Size | $19.9m | $21.4m* | |||
| No. | No. | ||||
| Total ordinary shares on issue | 17,656,274 | 19,737,085 | |||
| Total options on issue | 14,963,616 | 13,058,342 |
- This is after the receipt of option monies totalling $2,057,696 and the payment of the $696,872 fully franked final dividend during the month.
At 31 October 2012 the major securities held in the portfolio were as follows:
| Code | Company | Market Value $ |
Market Value as % Gross Assets |
|---|---|---|---|
| CSR | CSR Limited | 649,038 | 3.0% |
| INA | Ingenia Communities Group | 617,943 | 2.9% |
| RHG | RHG Limited | 610,316 | 2.8% |
| BKW | Brickworks Limited | 609,368 | 2.8% |
| ALS | Alesco Corporation Limited | 608,665 | 2.8% |
| CCQ | Contango Capital Partners Limited | 580,254 | 2.7% |
| CYG | CoventryGroupLimited | 563,575 | 2.6% |
| CRZ | Carsales.Com Limited | 525,855 | 2.4% |
| SDG | Sunland GroupLimited | 444,895 | 2.1% |
| FLT | Flight Centre Limited | 442,730 | 2.0% |
| DJS | David Jones Limited | 436,598 | 2.0% |
| RIC | RidleyCorporation Limited | 419,750 | 1.9% |
| PRV | Premium Investors Limited | 418,656 | 1.9% |
| BSL | Bluescope Steel Limited | 411,939 | 1.9% |
| MYR | Myer Holdings Limited | 411,021 | 1.9% |
| SVW | Seven GroupHoldings Limited | 393,455 | 1.8% |
| CLO | Clough Limited | 393,343 | 1.8% |
| CIF | Challenger Infrastructure Fund | 393,303 | 1.8% |
| AGF | AMP Capital China Growth Fund | 344,452 | 1.6% |
| FRI | Finbar Group Limited | 317,773 | 1.5% |
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WAM Active Limited| ABN 49 126 420 719 Phone 02 9247 6755 | Fax 02 9247 6855 | [email protected] | www.wamfunds.com.au
Portfolio structure – sector allocation
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Performance – yearly comparison to S&P/ASX All Ordinaries Accumulation Index
Set out below is the performance of WAA’s investment portfolio since listing to 31 October 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 | WAA Investment Portfolio |
S&P/ASX All Ordinaries Accumulation Index |
Outperformance |
|---|---|---|---|
| 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 YTD |
+2.2% +9.6% +22.7% +11.5% +5.5% +6.7% |
-15.2% -22.2% +13.8% +12.2% -7.0% +11.4% |
+17.4% +31.8% +8.9% -0.7% +12.5% -4.7% |
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WAM Active Limited| ABN 49 126 420 719 Phone 02 9247 6755 | Fax 02 9247 6855 | [email protected] | www.wamfunds.com.au
Performance - monthly comparison
The table below shows the month by month investment performance of WAA against the S&P/ASX All Ordinaries Accumulation Index.
| Jan 08 | Feb 08 | Mar 08 | Apr 08 | May 08 | Jun 08 | Jul 08 | |
|---|---|---|---|---|---|---|---|
| Investment 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 | |
| Investment 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 | |
| Investment 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 | |
| Investment 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 | |
| Investment 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 | |
| Investment 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 | |
| Investment 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 | May 12 | Jun 12 | Jul 12 | Aug 12 | |
| Investment Portfolio* | +3.5% | +1.1% | +0.0% | -1.6% | +1.1% | +1.2% | +2.0% |
| All Ords Accum. | +2.4% | +1.2% | +1.1% | -6.9% | +0.3% | +3.7% | +2.1% |
| Sep 12 | Oct 12 | Since Inception |
|||||
| Investment Portfolio* | +1.4% | +1.9% | +72.5% | ||||
| All Ords Accum. | +2.1% | +3.0% | -12.8% |
*The change in the portfolio before all expenses, fees and taxes.
Investor Presentations
The team at Wilson Asset Management enjoys the opportunity to meet with you at the semi-annual investor presentations to be held on the following dates:
Perth – 20 November 2012 Sydney – 28 November 2012 Melbourne – 29 November 2012 Adelaide – 30 November 2012 Canberra – 3 December 2012 Brisbane – 4 December 2012
We look forward to seeing you and please feel free to invite any other interested parties.
For more information
Please contact Geoff Wilson, Chris Stott or Kate Thorley.
Wilson Asset Management Level 11, 139 Macquarie Street, Sydney NSW 2000 GPO Box 4658 Sydney NSW 2001
Phone 02 9247 6755 Fax 02 9247 6855 [email protected]
www.wamfunds.com.au
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WAM Active Limited| ABN 49 126 420 719 Phone 02 9247 6755 | Fax 02 9247 6855 | [email protected] | www.wamfunds.com.au