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WAM ACTIVE LIMITED — Net Asset Value 2013
Aug 13, 2013
66032_rns_2013-08-13_ab099709-b48f-4bee-8d48-a6c7e2fabb93.pdf
Net Asset Value
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WAM ACTIVE LIMITED (WAA) ABN 49 126 420 719 INVESTMENT UPDATE & NET TANGIBLE ASSETS REPORT JULY 2013
Company overview
WAM Active Limited (‘WAA’ or the ‘Company’) 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 objectives
The investment objectives are to deliver investors a growing income stream in the form of fully franked dividends and to preserve capital.
Performance
Since inception, WAA’s investment portfolio has delivered positive returns in the short and long term. The performance against the S&P/ASX All Ordinaries Accumulation Index and the UBS Bank Bill Index is set out in the table below. The investment performance is before expenses, fees and taxes.
| Performance as at 31 July 2013 |
1 Mth % |
6 Mths % |
1 Year % |
3 Yrs %pa |
5 Yrs %pa |
Since Inception (Jan-08) %pa |
|---|---|---|---|---|---|---|
| WAA Investment Portfolio S&P/ASX All Ordinaries Accumulation Index Outperformance UBS Bank Bill Index Outperformance |
2.6% 5.5% -2.9% 0.3% +2.3% |
1.9% 4.8% -2.9% 1.5% +0.4% |
17.0% 22.7% -5.7% 3.2% +13.8% |
11.1% 8.4% +2.7% 4.3% +6.8% |
13.6% 4.4% +9.2% 4.4% +9.2% |
12.3% -0.1% +12.4% 4.7% +7.6% |
Net Tangible Asset (NTA) figures
The figures below have not been adjusted for the 6,611,237 remaining options on issue with an exercise price of $1.08 per share.
| NTA before tax | 107.19c |
|---|---|
| NTA after tax and before tax on unrealised gains | 108.13c* |
| NTA after tax | 106.18c** |
- Includes tax assets of 0.94 cents per share.
** Includes the net effect of 0.94 cents of tax assets and 1.95 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
The S&P/ASX All Ordinaries Accumulation Index increased 5.5% for July - the best monthly performance since October 2011. This was despite downgrades from companies such as Treasury Wine Estates, Woodside Petroleum and Orica during the month. The local share market rally has continued into the new financial year with the local equity market up 6.8% following positive data out of China and the United States. In Australia, political uncertainty has contributed to anaemic economic growth with unemployment standing at 5.7% and retail trade figures flat.
The Australian dollar has continued to fall having an adverse impact on import-focused businesses, however, it is a boon for a number of industries including tourism, manufacturing and firms that are export-oriented.
While we expect softer economic growth in the near term, the medium-to-long term outlook for Australia’s economy is positive supported by strong underlying fundamentals. With the official cash rate at its lowest level since 1959, and house prices on the rise in many areas, we expect this will stimulate consumer confidence boosting the economy and have a positive impact on cyclical stocks. With the federal election date now announced, this creates some political certainty which we believe will help counter weak consumer and business confidence.
Dividends – 4.75 cents per share fully franked final
On 12 August 2013, the Company announced a fully franked final dividend of 4.75 cents per share, an increase of 5.6% on the previous corresponding period. The final dividend brings the total dividend for FY2013 to 9.5 cents per share and represents a fully franked annual dividend yield of 7.8%, based on the last closing price.
The dividend re-investment plan will be operating at a 2.5% discount. To participate in the dividend reinvestment plan, shareholders should send their election to the Company’s share registrar (Boardroom) no later than 27 September 2013.
Key dividend dates
Ex date: 23 September 2013 Record date: 27 September 2013 Payment date: 4 October 2013 Last day for option holders to exercise options to be eligible for dividend: 20 September 2013
The Board is committed to paying an increasing stream of fully franked dividends to shareholders, provided the Company has sufficient profit reserves, franking credits and it is within prudent business practices. Dividends are paid on a six-monthly basis and the dividend reinvestment plan is available to shareholders for both the interim and final dividend.
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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
WAM Active Dividends
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7.8% fully franked FY2013 annualised dividend yield
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*Based on 13 August 2013 closing price.
Option issue – exercise at any time before 12 December 2013
On 4 May 2012, the Board announced a one-for-one bonus issue of options to acquire ordinary shares in the capital of the Company. 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 give shareholders the right, but not the obligation, to subscribe for shares in WAA at $1.08 per share. The options can be exercised in full or in part. The options are currently trading on the Australian Securities Exchange (‘ASX’) under the code WAAO.
As at 31 July 2013, 9,698,708 options had been exercised for a total consideration of $10,474,605, with the remaining balance of outstanding options being 6,611,237.
Portfolio structure
| Investment Type | As at 30 June 2013 | As at 30 June 2013 | As at 31 July 2013 | As at 31 July 2013 | |
|---|---|---|---|---|---|
| $m % |
$m % |
||||
| Australian Equities | 14.9 | 52.3% | 20.8 | 70.8% | |
| Fixed Interest and Cash | 13.5 | 47.7% | 8.5 | 29.2% | |
| Total Long Portfolio | 28.4 | 100.0% | 29.3 | 100.0% | |
| Total Short Portfolio | - | - | (0.3) | (1.0%) | |
| Total Gross Assets | $28.4m | $29.0m | |||
| Total number ordinary shares on issue | 26,400,472 | 26,428,033 | |||
| Total number options on issue | 6,638,798 | 6,611,237 |
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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 (continued)
At 31 July 2013, the major securities held in the portfolio were as follows:
| Code | Company | Market Value $ |
Market Value as % Gross Assets |
|---|---|---|---|
| GNC | Graincorp Limited | 1,696,743 | 5.8% |
| CYA | Century Australia Investments Limited | 1,353,137 | 4.6% |
| MFG | Magellan Financial Group Limited | 848,227 | 2.9% |
| HIL | Hills Holdings Limited | 838,538 | 2.9% |
| ELI | Emerging Leaders Investments Limited | 829,713 | 2.8% |
| CYG | Coventry Group Limited | 708,244 | 2.4% |
| HVN | Harvey Norman Holdings Limited | 703,594 | 2.4% |
| MQA | Macquarie Atlas Roads Group | 678,998 | 2.3% |
| SDG | Sunland Group Limited | 664,461 | 2.3% |
| WIC | Westoz Investment Company Limited | 654,116 | 2.2% |
| MQG | Macquarie Group Limited | 632,894 | 2.2% |
| PRT | Prime Media Group Limited | 581,262 | 2.0% |
| IPE | ING Private Equity Access Limited | 578,122 | 2.0% |
| DOW | Downer EDI Limited | 569,459 | 1.9% |
| BKW | Brickworks Limited | 555,317 | 1.9% |
| MYR | Myer Holdings Limited | 546,278 | 1.9% |
| INA | Ingenia Communities Group | 475,002 | 1.6% |
| VLW | Villa World Limited | 473,697 | 1.6% |
| DVN | Devine Limited | 351,526 | 1.2% |
| TGG | TempletonGlobalGrowth FundLimited | 332,030 | 1.1% |
Portfolio structure – sector allocation
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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 – 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 July 2013 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 2013/2014 |
2.2% 9.6% 22.7% 11.5% 5.5% 15.4% 2.6% |
-15.2% -22.2% 13.8% 12.2% -7.0% 20.7% 5.5% |
+17.4% +31.8% +8.9% -0.7% +12.5% -5.3% -2.9% |
Performance – monthly comparison
The table below shows the month-by-month investment performance of WAA against the S&P/ASX All Ordinaries Accumulation Index since listing to 31 July 2013.
| Jan 08 | Feb 08 | Mar 08 | Apr 08 | May 08 | Jun 08 | Jul 08 | |
|---|---|---|---|---|---|---|---|
| InvestmentPortfolio * |
+0.3% | +1.2% | +0.5% | +1.6% | +2.4% | -3.7% | -1.1% |
| AllOrdsAccum. | -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 | |
| InvestmentPortfolio * |
+0.1% | -3.8% | -5.3% | -5.2% | +3.4% | -1.9% | +0.6% |
| AllOrdsAccum. | +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 | |
| InvestmentPortfolio * |
+4.5% | +7.6% | +5.0% | +6.2% | +9.6% | +7.5% | +6.2% |
| AllOrdsAccum. | +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 | |
| InvestmentPortfolio * |
+2.1% | +0.3% | +1.0% | -3.6% | +0.0% | +2.9% | +0.4% |
| AllOrdsAccum. | -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 | |
| InvestmentPortfolio * |
-4.0% | -0.9% | +1.6% | +0.1% | +2.7% | +1.3% | +2.3% |
| AllOrdsAccum. | -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 | |
| InvestmentPortfolio * |
+3.6% | +0.7% | -0.3% | +0.4% | +2.5% | -1.6% | -2.3% |
| AllOrdsAccum. | +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 | |
| InvestmentPortfolio * |
+0.0% | -1.2% | +0.7% | +2.1% | -0.4% | -1.0% | +1.0% |
| AllOrdsAccum. | -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 | |
| InvestmentPortfolio * |
+3.5% | +1.1% | +0.0% | -1.6% | +1.1% | +1.2% | +2.0% |
| AllOrdsAccum. | +2.4% | +1.2% | +1.1% | -6.9% | +0.3% | +3.7% | +2.1% |
| Sep 12 | Oct 12 | Nov 12 | Dec 12 | Jan 13 | Feb 13 | Mar 13 | |
| InvestmentPortfolio ~~*~~ |
+1.4% | +1.9% | +0.7% | +2.7% | +5.3% | +4.6% | -0.1% |
| AllOrdsAccum. | +2.1% | +3.0% | +0.3% | +3.4% | +5.1% | +5.2% | -2.2% |
| Apr 13 | May 13 | Jun 13 | Jul 13 | **Since Inception ** | |||
| InvestmentPortfolio ~~*~~ |
-0.6% | -3.0% | -1.3% | +2.6% | +91.5% | ||
| AllOrdsAccum. |
+3.8% |
-4.4% |
-2.6% |
+5.5% | -0.3% |
~~*~~ The change in the portfolio before all expenses, fees and taxes.
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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
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