WAM ACTIVE LIMITED — Net Asset Value 2012

Apr 11, 2012

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WAM ACTIVE LIMITED (WAA) ABN 49 126 420 719 INVESTMENT UPDATE & NTA – MARCH 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.

Since inception, WAA has outperformed the overall sharemarket. The strong performance of the investment portfolio against the S&P/ASX All Ordinaries Accumulation Index is set out in the table below. The performance relates to investments only and does not take into account expenses and taxes.

Performance as at 31 March 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	+1.1% +1.2% -0.1%	+6.5% +11.0% -4.5%	+6.1% -1.5% +7.6%	+4.6% -6.2% +10.8%	+6.3% -0.9% +7.2%	+20.3% +12.3% +8.0%	+12.1% -4.3% +16.4%

The NTA numbers below are before the payment of a 4.5 cent per share fully franked interim dividend which is due to be paid on 24 April 2012. The shares traded ex dividend on 11 April 2012.

NTA before tax	111.99c
NTA after tax and before tax on unrealised gains	113.57c*
NTA after tax	111.72c**

• Includes tax assets of 1.58 cents per share.

**Includes the net effect of 1.58 cents of tax assets and 1.85 cents of deferred tax liabilities.

1

Market Outlook

The Australian equity market continued its strong start to 2012 finishing higher by 1.2% for the month. Investor sentiment benefited from continued positive macroeconomic data prints in the US, along with the Federal Reserve confirming its current policy settings would remain in place. The euro region stayed crisis-free for another month while investors’ views around China’s near-term growth profile remained volatile. Bonds declined as investors’ switched into equities. Notably the S&P500 has risen almost 30% off its lows in early October 2011, while the Australian market continues to lag up just over 10%.

Domestic macroeconomic news flow continued to surprise on the downside with the non-mining side of the economy continuing to weaken. This outlook was reflected in the Reserve Bank statement this week which indicated a high probability that the cash rate will reduce at the next meeting in May. A series of successive rate cuts is needed to stimulate the non-mining economy out of recession. Earnings downgrades from retailers in March were confirmation of this. Interestingly, fashion retailer Oroton cited the current malaise in the retail sector as a structural shift to online, rather than cyclical.

After a strong start to 2012, we remain cautiously optimistic on the outlook for equity markets. We continue to research heavily for new investment opportunities.

Dividends

On 13 February 2012, the Board announced an interim dividend of 4.5 cents per share fully franked to be paid on 24 April 2012. The shares traded ex dividend on 11 April 2012. This is a 12.5% increase on the prior year’s interim dividend.

The dividend reinvestment plan will operate with a 2.5% discount. The current share price ($1.105 being closing price 11 April 2012) is trading at 1.3% discount to the 31 March 2012 pre-tax NTA. To participate in the dividend reinvestment plan, please send your election to our share registrar no later than 17 April 2012.

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.

Providing the Company is deemed solvent by the Board, WAA should always be in a position to pay dividends. As at 31 March 2012, WAA has franking credits which allow it to pay a dividend equivalent to 10.4 cents per share. This is before the payment of the interim dividend.

• Annualised interim dividend

2

Portfolio Structure

	As at 29 Feb 2012	As at 29 Feb 2012		As at 31 Mar 2012	As at 31 Mar 2012
Investment Type	**$m **	%		$m %
Listed Equities	12.7	69.3%		10.8	58.4%
Fixed Interest and Cash	5.6	30.7%		7.7	41.6%
Total Long Portfolio	18.3	100.0%		18.5	100.0%
Total Short Portfolio	(0.1)			(0.0)
Total Fund Size	$18.2m			$18.5m
	No.			No.
Total ordinary shares on issue	16,176,213			16,176,213

At 31 March 2012 the major securities held in the portfolio were:

Code	Company	Market Value $	Market Value as % Gross Assets
CCQ	Contango Capital Partners Limited	543,205	2.9%
ILF	ING Real Estate CommunityLivingGroup	430,646	2.3%
EPX	Ethane Pipeline Income Fund	397,045	2.2%
AIX	Australian Infrastructure Fund	386,460	2.1%
SDG	Sunland GroupLimited	386,446	2.1%
GFF	Goodman Fielder Limited	372,973	2.0%
EGP	Echo Entertainment GroupLimited	372,053	2.0%
BSL	Bluescope Steel Limited	364,388	2.0%
CYG	CoventryGroupLimited	349,182	1.9%
VAH	Virgin Australia Holdings Limited	339,037	1.8%
MIO	Miclyn Express Offshore Limited	333,467	1.8%
CLO	Clough Limited	324,723	1.8%
RHG	RHG Limited	302,888	1.6%
SVW	Seven GroupHoldings Limited	297,355	1.6%
CDD	Cardno Limited	274,735	1.5%
CBAPB	CBA Perpetual Exc Resale Listed Sec - PERLS IV	250,312	1.4%
SWM	Seven West Media Limited	245,040	1.3%
CMIPC	CMI Limited Conv Pref Class A	239,564	1.3%
ACR	Acrux Limited	238,800	1.3%
FGE	Forge GroupLimited	203,100	1.1%

3

Portfolio Structure – Asset Allocation

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Portfolio Structure - Sector Allocation

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4

Performance

Set out below is the performance of WAA’s investment portfolio since listing to 31 March 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	Gross Portfolio	S&P/ASX All Ordinaries Accumulation Index	Outperformance
2007/2008 2008/2009 2009/2010 2010/2011 YTD 2011/2012	+2.2% +9.6% +22.7% +11.5% +6.1%	-15.2% -22.2% +13.8% +12.2% -1.5%	+17.4% +31.8% +8.9% -0.7% +7.6%

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	Jun 11
Gross 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
Gross 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					Since Inception
Gross Portfolio*	+3.5%	+1.1%					+62.4%
All Ords Accum.	+2.4%	+1.2%					-17.0%

*The change in the portfolio before all expenses, fees and taxes

5

For further information please contact Geoff Wilson or Chris Stott. 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 | info@wamfunds.com.au | www.wamfunds.com.au