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WAM ACTIVE LIMITED — Net Asset Value 2013
May 13, 2013
66032_rns_2013-05-13_ad73ecb1-c3f0-46e1-a5ce-f94e32629c38.pdf
Net Asset Value
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WAM ACTIVE LIMITED (WAA) ABN 49 126 420 719 INVESTMENT UPDATE & NET TANGIBLE ASSETS REPORT APRIL 2013
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.
Performance
Since inception, the WAA 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.
| Fin YTD % |
Since Inception (Jan-08) %pa |
||||||
|---|---|---|---|---|---|---|---|
| Performance as at 30 April 2013 |
1 Mth % |
6 Mths % |
1 Year % |
2 Yrs %pa |
3 Yrs %pa |
||
| WAA Investment Portfolio S&P/ASX All Ordinaries Accumulation Index Outperformance UBS Bank Bill Index Outperformance |
-0.6% +3.8% -4.4% +0.3% -0.9% |
+13.0% +16.3% -3.3% +1.6% +11.4% |
+20.6% +29.6% -9.0% +2.8% +17.8% |
+20.0% +21.0% -1.0% +3.5% +16.5% |
+10.7% +7.4% +3.3% +4.2% +6.5% |
+10.5% +6.8% +3.7% +4.4% +6.1% |
+13.3% +0.3% +13.0% +4.8% +8.5% |
Net Tangible Asset (NTA) figures
The following NTA figures are after the payment of the 4.75 cent per share fully franked interim dividend on 19 April 2013. The figures below have not been adjusted for the 6,639,798 remaining options on issue with an exercise price of $1.08 per share.
| NTA before tax | 109.33c* |
|---|---|
| NTA after tax and before tax on unrealised gains | 109.40c** |
| NTA after tax | 107.41c*** |
-
After the payment of 0.39 cents in tax during the month.
-
** Includes tax assets of 0.07 cents per share.
-
*** Includes the net effect of 0.07 cents of tax assets and 1.99 cents of deferred tax liabilities. The above figures are after the exercise of 3,541,793 options during the month.
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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 finished up 3.8% in April. The insatiable appetite for yield continued with the four major banks and Telstra representing the majority of the market’s performance in April. The Small Industrials Accumulation Index lagged in April, finishing up 0.81%. The Small Resources Accumulation Index continued its slide, closing down 20.4% for the month.
The RBA cut interest rates in early May by 0.25% which will continue to fuel the current chase for high dividend yield stocks. Resources were weak again, in particular gold stocks. Resources focused companies have had a torrid 12 months in general, with fears around global macroeconomic growth. However, with US growth slowly improving and the aggressive quantitative easing programme being undertaken by Japan, we may see an uptick in the demand for resources eventuate in late 2013. If global growth continues to improve, companies in the resources, materials and mining services sectors represent leveraged plays on a global recovery. We continue to monitor companies in these sectors for deep value opportunities.
Dividends – 4.75 cents per share fully franked interim
On 19 April 2013 WAA paid a fully franked interim dividend of 4.75 cents per share. This is a 5.6% increase on the previous year’s interim dividend and represents an annualised fully franked dividend yield of 8.1% based on the last sale price.
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.
WAM Active Dividends
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8.1% fully franked FY2013 annualised dividend yield
Annualised interim dividend
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*Based on 13 May 2013 closing price.
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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 – exercise at any time before 12 December 2013
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 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 ASX under the code WAAO.
As at 30 April 2013, 9,670,147 options have been exercised for a total consideration of $10,443,757, with the remaining balance of outstanding options being 6,639,798.
Portfolio structure
| As at 31 Mar 2013 | As at 31 Mar 2013 | As at 30 Apr 2013 | As at 30 Apr 2013 | ||
|---|---|---|---|---|---|
| Investment Type | $m % |
$m % |
|||
| Australian Equities | 17.4 | 62.8% | 18.7 | 61.9% | |
| Fixed Interest and Cash | 10.3 | 37.2% | 11.5 | 38.1% | |
| Total Long Portfolio | 27.7 | 100.0% | 30.2 | 100.0% | |
| Total Short Portfolio | (0.2) | (0.8%) | (0.4) | (1.3%) | |
| Total Fund Size | $27.5m | $29.8m | |||
| Total number ordinary shares on issue | 22,613,836 | 26,399,472 | |||
| Total number options on issue | 10,181,591 | 6,639,798 |
At 30 April 2013 the major securities held in the portfolio were as follows:
| Market Value $ |
Market Value as % Gross Assets |
||
|---|---|---|---|
| Code | Company | ||
| CYA | CenturyAustraliaInvestmentsLimited | 1,404,522 | 4.6% |
| HIL | HillsHoldingsLimited | 905,618 | 3.0% |
| HVN | HarveyNorman HoldingsLimited | 868,818 | 2.9% |
| BKW | BrickworksLimited | 802,974 | 2.7% |
| FXJ | Fairfax MediaLimited | 785,061 | 2.6% |
| CYG | Coventry GroupLimited | 666,116 | 2.2% |
| SDG | Sunland Group Limited | 665,556 | 2.2% |
| ELI | Emerging Leaders Investments Limited | 657,717 | 2.2% |
| WIC | Westoz Investment CompanyLimited | 578,649 | 1.9% |
| ANZ | AustraliaAndNew ZealandBanking GroupLtd | 550,705 | 1.8% |
| WBC | WestpacBanking Corporation | 540,124 | 1.8% |
| PRT | PrimeMedia GroupLimited | 539,315 | 1.8% |
| JBH | JB Hi-Fi Limited | 526,400 | 1.7% |
| CDA | Codan Limited | 516,483 | 1.7% |
| MIO | Miclyn Express OffshoreLimited | 512,977 | 1.7% |
| INA | Ingenia Communities Group | 462,603 | 1.5% |
| TEN | Ten Network Holdings Limited | 432,130 | 1.4% |
| CAA | Capral Limited | 415,067 | 1.4% |
| AIX | Australian Infrastructure Fund | 405,166 | 1.3% |
| FGE | Forge GroupLimited | 370,851 | 1.2% |
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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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Positive 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 April 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.
| S&P/ASX All Ordinaries Accumulation Index |
|||
| WAA Investment Portfolio |
|||
| Financial Year | Outperformance | ||
| 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013YTD |
+2.2% +9.6% +22.7% +11.5% +5.5% +20.6% |
-15.2% -22.2% +13.8% +12.2% -7.0% +29.6% |
+17.4% +31.8% +8.9% -0.7% +12.5% -9.0% |
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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 | |
|---|---|---|---|---|---|---|---|
| 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 | Since Inception |
||||||
| InvestmentPortfolio~~*~~ | -0.6% | +95.0% | |||||
| AllOrdsAccum. |
+3.8% |
+1.5% |
~~*~~ The change in the portfolio before all expenses, fees and taxes.
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