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WAM ACTIVE LIMITED — Net Asset Value 2013
Mar 13, 2013
66032_rns_2013-03-13_aabf5aba-fd65-4bdd-81b9-ec91fdef04e1.pdf
Net Asset Value
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WAM ACTIVE LIMITED (WAA) ABN 49 126 420 719 INVESTMENT UPDATE & NET TANGIBLE ASSETS REPORT FEBRUARY 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 28 February 2013 |
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 |
+4.6% +5.2% -0.6% |
+17.7% +20.5% -2.8% |
+21.5% +27.7% -6.2% |
+22.3% +21.9% +0.4% |
+12.7% +6.7% +6.0% |
+12.0% +7.8% +4.2% |
+14.0% -0.0% +14.0% |
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 will trade ex dividend on 8 April 2013. The figures below have not been adjusted for the 12,253,803 remaining options on issue with an exercise price of $1.08 per share.
| NTA before tax | 117.57c |
|---|---|
| NTA after tax and before tax on unrealised gains | 118.09c* |
| NTA after tax | 113.97c** |
- Includes tax assets of 0.52 cents per share.
**Includes the net effect of 0.52 cents of tax assets and 4.12 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
In February the S&P/ASX All Ordinaries Accumulation Index finished up 5.2% continuing the strong rally in the Australian equity market which started in June last year. The market has closed higher 13 out of the last 14 months and is now at 4 year highs. Much of the recent share price rise has been price to earnings ratio expansion reflecting a dramatic shift in investor sentiment.
Reporting season concluded at the end of the February. The key theme was that profit growth has come mostly from reduced costs rather than higher revenue. Outlook statements remained cautious with companies noting stabilisation in their respective markets rather than a concerted upswing in trading conditions. There were hints of optimism from sectors such as retail and housing construction with both sectors seeing patchy improvement.
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
8.1% fully franked FY2013 annualised dividend yield[*]
-
Annualised interim dividend
-
*Based on the 13 March 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 – 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 28 February 2013, 4,056,142 options have been exercised for a total consideration of $4,380,633 with a remaining balance of outstanding options being 12,253,803.
Portfolio structure
| As at 31 Jan 2013 | As at 31 Jan 2013 | As at 28 Feb 2013 | As at 28 Feb 2013 | ||
|---|---|---|---|---|---|
| Investment Type | $m % |
$m % |
|||
| Australian Equities | 21.7 | 91.7% | 21.6 | 85.8% | |
| Fixed Interest and Cash | 2.0 | 8.3% | 3.6 | 14.2% | |
| Total Long Portfolio | 23.7 | 100.0% | 25.2 | 100.0% | |
| Total Short Portfolio | (0.0) | (0.0%) | (0.0) | (0.0%) | |
| Total Fund Size | $23.7m | $25.2m | |||
| No. | No. | ||||
| Total ordinary shares on issue | 20,200,443 | 20,541,624 | |||
| Total options on issue | 12,594,984 | 12,253,803 |
At 28 February 2013 the major securities held in the portfolio were as follows:
| Code | Company | Market Value $ |
Market Value as % Gross Assets |
|---|---|---|---|
| HIL | Hills Holdings Limited | 913,851 | 3.6% |
| ELI | EmergingLeaders Investments Limited | 843,548 | 3.4% |
| SVW | Seven GroupHoldings Limited | 837,744 | 3.3% |
| BKW | Brickworks Limited | 804,862 | 3.2% |
| INA | Ingenia Communities Group | 761,958 | 3.0% |
| CYG | CoventryGroupLimited | 735,857 | 2.9% |
| BSL | Bluescope Steel Limited | 620,757 | 2.5% |
| SDG | Sunland GroupLimited | 599,456 | 2.4% |
| WIC | Westoz Investment CompanyLimited | 583,852 | 2.3% |
| CLO | Clough Limited | 545,193 | 2.2% |
| MYR | Myer Holdings Limited | 532,678 | 2.1% |
| FXJ | Fairfax Media Limited | 516,604 | 2.1% |
| PTM | Platinum Asset Management Limited | 504,789 | 2.0% |
| BOQ | Bank Of Queensland Limited | 496,496 | 2.0% |
| CAA | Capral Limited | 474,982 | 1.9% |
| RHG | RHG Limited | 467,479 | 1.9% |
| PRT | Prime Media GroupLimited | 465,756 | 1.9% |
| TLS | Telstra Corporation Limited | 457,747 | 1.8% |
| AGF | AMP Capital China Growth Fund | 451,994 | 1.8% |
| MIO | Miclyn Express Offshore Limited | 431,356 | 1.7% |
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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 28 February 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% +21.5% |
-15.2% -22.2% +13.8% +12.2% -7.0% +27.7% |
+17.4% +31.8% +8.9% -0.7% +12.5% -6.2% |
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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
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 | Jul 12 | Aug 12 | |
| Investment Portfolio* | +3.5% | +1.1% | +0.0% | -1.6% | +1.1% | +1.2% | +2.0% |
| All Ords Accum. | +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 | Since Inception |
|
| Investment Portfolio* | +1.4% | +1.9% | +0.7% | +2.7% | +5.3% | +4.6% | +96.5% |
| All Ords Accum. | +2.1% | +3.0% | +0.3% | +3.4% | +5.1% | +5.2% | -0.0% |
*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