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WAM ACTIVE LIMITED — Net Asset Value 2013
Apr 9, 2013
66032_rns_2013-04-09_c8b16d03-3227-43cf-ae77-053062ed59b6.pdf
Net Asset Value
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WAM ACTIVE LIMITED (WAA) ABN 49 126 420 719 INVESTMENT UPDATE & NET TANGIBLE ASSETS REPORT MARCH 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.
Positive returns
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 is set out in the table below. The investment performance is before expenses, fees and taxes.
| Performance as at 31 March 2013 WAA Investment Portfolio S&P/ASX All Ordinaries Accumulation Index Outperformance |
1 Mth % |
6 Mths % |
Fin YTD % |
1 Year % |
2 Yrs %pa |
3 Yrs %pa |
Since Inception (Jan-08) %pa |
|---|---|---|---|---|---|---|---|
| -0.1% -2.2% +2.1% |
+15.9% +15.4% +0.5% |
+21.4% +24.8% -3.4% |
+20.8% +17.8% +3.0% |
+12.4% +5.1% +7.3% |
+10.9% +5.0% +5.9% |
+13.7% -0.4% +14.1% |
Net Tangible Asset (NTA) figures
The following NTA figures are before the payment of the 4.75 cent per share fully franked interim dividend which is due to be paid on 19 April 2013. The shares traded ex-dividend on 8 April 2013. The figures below have not been adjusted for the 10,181,591 remaining options on issue with an exercise price of $1.08 per share.
| NTA before tax | 116.90c |
|---|---|
| NTA after tax and before tax on unrealised gains | 116.50c |
| NTA after tax | 113.89c |
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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 down 2.2% in March. This was the end of a 9 month rally that had seen the market rise every month since last May. A revival of concerns around the European sovereign debt crisis from the Cyprus bailout destabilised financial markets. We also had news from China which suggested the central bank and ministry of housing will seek to dampen Chinese house price growth. This news particularly affected the resources and mining services sector.
The RBA left rates on hold in both March and April and we believe that they will not cut rates any further this year. Improving house prices, retail sales and consumer confidence suggest that the rate cuts delivered over the last 18 months are finally starting to have an impact. The RBA will probably adopt a wait and see approach over this year in order to judge the effectiveness of previous rate cuts. Should this turnaround in consumer sentiment, retail sales and housing continue to strengthen, companies exposed to these sectors will be well positioned.
Dividends – 4.75 cents per share fully franked interim
On 21 February 2013, the Company announced 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 sixmonthly basis. Dividend payments will also be made with consideration to cash flow and cash holdings.
WAM Active Dividends
- Annualised interim 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
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 March 2013, 6,128,354 options have been exercised for a total consideration of $6,618,622 with a remaining balance of outstanding options being 10,181,591.
Portfolio structure
| Investment Type | As at 28 Feb 2013 | As at 28 Feb 2013 | As at 31 Mar 2013 | As at 31 Mar 2013 | |
|---|---|---|---|---|---|
| $m % |
$m % |
||||
| Australian Equities | 21.6 | 85.8% | 17.4 | 62.8% | |
| Fixed Interest and Cash | 3.6 | 14.2% | 10.3 | 37.2% | |
| Total Long Portfolio | 25.2 | 100.0% | 27.7 | 100.0% | |
| Total Short Portfolio | (0.0) | (0.0%) | (0.2) | (0.8%) | |
| Total Fund Size | $25.2m | $27.5m | |||
| No. | No. | ||||
| Total ordinary shares on issue | 20,541,624 | 22,613,836 | |||
| Total options on issue | 12,253,803 | 10,181,591 |
At 31 March 2013 the major securities held in the portfolio were as follows:
| Code | Company | Market Value $ |
Market Value as % Gross Assets |
|---|---|---|---|
| CYA | Century Australia Investments Limited | 973,434 | 3.5% |
| HIL | Hills Holdings Limited | 917,967 | 3.3% |
| ELI | Emerging Leaders Investments Limited | 848,206 | 3.1% |
| BKW | Brickworks Limited | 819,965 | 3.0% |
| HVN | Harvey Norman Holdings Limited | 734,643 | 2.7% |
| INA | Ingenia Communities Group | 719,892 | 2.6% |
| CYG | Coventry Group Limited | 671,191 | 2.4% |
| SDG | Sunland Group Limited | 601,735 | 2.2% |
| WIC | Westoz Investment Company Limited | 597,378 | 2.2% |
| FGE | Forge Group Limited | 575,208 | 2.1% |
| FXJ | Fairfax Media Limited | 566,018 | 2.0% |
| CDA | Codan Limited | 546,883 | 2.0% |
| TEN | Ten Network Holdings Limited | 527,669 | 1.9% |
| CLO | Clough Limited | 506,566 | 1.8% |
| MIO | Miclyn Express Offshore Limited | 478,641 | 1.7% |
| PRT | Prime Media Group Limited | 465,975 | 1.7% |
| MYR | Myer Holdings Limited | 458,808 | 1.7% |
| CAA | Capral Limited | 458,724 | 1.7% |
| KSC | K & S Corporation Limited | 434,945 | 1.6% |
| IFL | IOOF Holdings Limited | 368,752 | 1.3% |
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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 31 March 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 |
+2.2% +9.6% +22.7% +11.5% +5.5% +21.4% |
-15.2% -22.2% +13.8% +12.2% -7.0% +24.8% |
+17.4% +31.8% +8.9% -0.7% +12.5% -3.4% |
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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% |
| Since Inception |
|||||||
| InvestmentPortfolio ~~*~~ |
+96.2% | ||||||
| AllOrdsAccum. |
-2.2% |
~~*~~ 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 semiannual investor presentations to be held on the following dates:
Melbourne: 30 April 2013 Adelaide: 1 May 2013 Sydney: 2 May 2013 Brisbane: 3 May 2013
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