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WAM ACTIVE LIMITED — Net Asset Value 2012
Jul 12, 2012
66032_rns_2012-07-12_ca6d2c6a-f3a9-4200-86de-dae6dc67b33d.pdf
Net Asset Value
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WAM ACTIVE LIMTED
ACN 126 420 719
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13 July 2012
The Manager Company Announcements Office Australian Stock Exchange
Amendment - Investment Update and NTA June 2012
Please find the following amended Investment Update and NTA for June 2012 for the WAM Active Limited (WAA). Please note the changes to the major securities held in the portfolio on page 4 of the announcement.
Kate Thorley Company Secretary
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
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WAM ACTIVE LIMITED (WAA) ABN 49 126 420 719 INVESTMENT UPDATE & NET TANGIBLE ASSETS REPORT JUNE 2012
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. 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.
Outperformance against sharemarket
Since inception, the WAA Investment Portfolio has outperformed the overall sharemarket – its strong performance against the S&P/ASX All Ordinaries Accumulation Index is set out in the table below. The performance relates to the investments and excludes expenses and taxes.
| Performance as at 30 June 2012 |
1 Mth % |
6 Mths % |
1 Year % |
2 Yrs %pa |
3 Yrs %pa |
Since Inception (Jan-08) %pa |
|---|---|---|---|---|---|---|
| WAA Investment Portfolio S&P/ASX All Ordinaries Accumulation Index Outperformance |
+1.1% +0.3% +0.8% |
+5.3% +2.9% +2.4% |
+5.5% -7.0% +12.5% |
+8.5% +2.1% +6.4% |
+13.0% +5.9% +7.1% |
+11.3% -5.3% +16.6% |
NTA figures
The following Net Tangible Asset (NTA) figures are after the payment of a fully franked interim dividend of 4.5 cents per share paid on the 24 April 2012. The figures below have not been adjusted for the 16,309,945 options of issue with an exercise price of $1.08 per share.
| NTA before tax | 106.23c |
|---|---|
| NTA after tax and before tax on unrealised gains | 108.02c* |
| NTA after tax | 106.47c** |
- Includes tax assets of 1.79 cents per share.
**Includes the net effect of 1.79 cents of tax assets and 1.55 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
With a last minute sprint for the finish line, June scraped into positive territory with the S&P/ASX All Ordinaries Accumulation Index up 0.25%. However the index was down 7.0% for the financial year. This marks the third time in the last five financial years the market has finished down.
A raft of profit downgrades and discounted capital raisings were announced during June. The cast included some big names: Boral, Billabong, Ten Network Holdings, and Qantas. Given these downgrades and the weak economic environment, we believe that analysts’ earnings estimates for FY13 remain too optimistic and will need to be revised downwards. We expect this to occur over the coming months as full year results for most companies are released and analysts update their models and forecasts. The 0.25% interest rate cut in June should ultimately be a positive for industrial companies as it will help stimulate economic activity. Unfortunately, feedback from the companies we meet is that they have not seen any flow-on effects or a change in consumer behaviour from the recent interest rate cuts. Since the current loosening cycle commenced in November 2011, we have seen a 1.25% reduction in the cash rate.
Moving offshore, concerns about the Greek election results and the continuing European sovereign debt crisis drove government bond yields lower during June - to multi-century lows in some cases. After the Greek election and the actions from the latest EU summit on the crisis, concerns dissipated somewhat and yields retreated from record low levels. These low Government bond yields imply a low growth environment, which is concerning for the future growth in company earnings.
Although we have become more conservative in our outlook for equity markets in 2013, volatile equity markets provide exceptional opportunities. Thus we continue to research thoroughly and meet with company management teams to identify such opportunities.
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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
Dividends – 4.5 cents per share fully franked interim
On 24 April 2012, the Company paid a fully franked interim dividend of 4.5 cents per share. This was a 12.5% increase on the previous year’s interim 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, cash holdings and available franking credits.
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* Annualised interim dividend
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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 13 July 2012, 5,360 options have been exercised for a total consideration of $5,789 with a remaining balance of outstanding options being 16,304,585.
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WAM Active Limited| ABN 49 126 420 719 Phone 02 9247 6755 | Fax 02 9247 6855 | [email protected] | www.wamfunds.com.au
Portfolio structure
| As at 31 May 2012 | As at 31 May 2012 | As at 30 June 2012 | As at 30 June 2012 | ||
|---|---|---|---|---|---|
| Investment Type | **$m ** | % | $m % |
||
| Listed Equities | 9.2 | 51.6% | 9.3 | 51.4% | |
| Fixed Interest and Cash | 8.7 | 48.4% | 8.8 | 48.6% | |
| Total Long Portfolio | 17.9 | 100.0% | 18.1 | 100.0% | |
| Total Short Portfolio | (0.4) | (2.0%) | (0.5) | (3.0%) | |
| Total Fund Size | $17.5m | $17.6m | |||
| No. | No. | ||||
| Total ordinary shares on issue | 16,309,945 | 16,309,945 | |||
| Total options on issue | - | 16,309,945 |
At 30 June 2012 the major securities held in the portfolio were as follows:
| Code | Company | Market Value $ |
Market Value as % Gross Assets |
|---|---|---|---|
| CCQ | Contango Capital Partners Limited | 580,254 | 3.2% |
| SDG | Sunland Group Limited | 523,184 | 2.9% |
| CBAPB | CBA Perpetual Exc Resale Listed Sec-PERLS IV | 511,800 | 2.8% |
| CYG | Coventry Group Limited | 457,411 | 2.5% |
| EPX | Ethane Pipeline Income Fund | 447,887 | 2.5% |
| AIX | Australian Infrastructure Fund | 413,520 | 2.3% |
| CIF | Challenger Infrastructure Fund | 408,910 | 2.3% |
| INA | Ingenia Communities Group | 404,695 | 2.2% |
| DMG | Dragon Mountain Gold Limited | 343,978 | 1.9% |
| CLO | Clough Limited | 340,925 | 1.9% |
| RHG | RHG Limited | 330,870 | 1.8% |
| SHV | Select Harvests Limited | 316,007 | 1.7% |
| IIN | iiNet Limited | 312,392 | 1.7% |
| PRV | Premium Investors Limited | 295,535 | 1.6% |
| PMC | Platinum Capital Limited | 289,692 | 1.6% |
| MMX | Murchison Metals Limited | 288,426 | 1.6% |
| TWO | Talent2 International Limited | 262,206 | 1.4% |
| CND | Clarius Group Limited | 212,598 | 1.2% |
| JBH | JB Hi-Fi Limited | 207,324 | 1.1% |
| MTSXX | Metcash Limited | 191,100 | 1.1% |
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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 30 June 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 | Investment Portfolio |
S&P/ASX All Ordinaries Accumulation Index |
Outperformance |
|---|---|---|---|
| 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 |
+2.2% +9.6% +22.7% +11.5% +5.5% |
-15.2% -22.2% +13.8% +12.2% -7.0% |
+17.4% +31.8% +8.9% -0.7% +12.5% |
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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
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 | Since Inception |
||
| Investment Portfolio* | +3.5% | +1.1% | +0.0% | -1.6% | +1.1% | +61.6% | |
| All Ords Accum. | +2.4% | +1.2% | +1.1% | -6.9% | +0.3% | -21.7% |
*The change in the portfolio before all expenses, fees and taxes.
For more information
Please contact Geoff Wilson or Chris Stott.
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