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WAM ACTIVE LIMITED — Net Asset Value 2013
Feb 13, 2013
66032_rns_2013-02-13_30ee80f8-1349-4c4b-a952-c1e3fd3634fc.pdf
Net Asset Value
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WAM ACTIVE LIMITED (WAA) ABN 49 126 420 719 INVESTMENT UPDATE & NET TANGIBLE ASSETS REPORT JANUARY 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 January 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 |
+5.3% +5.1% +0.2% |
+14.9% +17.0% -2.1% |
+16.2% +21.4% -5.2% |
+21.1% +18.7% +2.4% |
+10.0% +5.1% +4.9% |
+10.4% +6.7% +3.7% |
+13.2% -1.0% +14.2% |
Net Tangible Asset (NTA) figures
The following NTA figures are after the payment of a fully franked final dividend of 4.5 cents per share paid on the 19 October 2012. The figures below have not been adjusted for the 12,594,984 remaining options on issue with an exercise price of $1.08 per share.
| NTA before tax | 113.74c |
|---|---|
| NTA after tax and before tax on unrealised gains | 115.02c* |
| NTA after tax | 111.05c** |
- Includes tax assets of 1.28 cents per share.
**Includes the net effect of 1.28 cents of tax assets and 3.97 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
Birth of a bull?
The ASX/S&P All Ordinaries Accumulation Index finished up 5.1% for January, continuing its strong run that started in June last year. Evidence is emerging that investors are beginning to move back into the equity market. As term deposits are rolled over at lower rates, this may prove an impetus to retail investors to reallocate money back into equities. Improving global macroeconomic news from the US, China and Europe also helped to underpin investor confidence for the year ahead.
Half way there
In February the majority of Australian listed companies will report earnings results to the market. Given the market expects earnings to be average during this reporting season, the main focus will be on the outlook statements. How companies view things are going in the second half of the financial year and what this implies for the next financial year will be significant. The recent rally has been primarily price to earnings (P/E) expansion and we now need to see the earnings come through to support these higher share prices. The outlook statements at these results will be the first opportunity to assess if these earnings are in fact going to flow through.
Dividends – 4.5 cents per share fully franked final
On 19 October 2012, the Company paid a fully franked final dividend of 4.5 cents per share. This is a 12.5% increase on the previous year’s final dividend.
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
7.6% fully franked FY2012 annualised dividend yield[*]
*Based on the 13 February 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 31 January 2013, 3,714,961 options have been exercised for a total consideration of $4,012,158 with a remaining balance of outstanding options being 12,594,984.
Portfolio structure
| As at 31 Dec 2012 | As at 31 Dec 2012 | As at 31 Jan 2013 | As at 31 Jan 2013 | ||
|---|---|---|---|---|---|
| Investment Type | $m % |
$m % |
|||
| Australian Equities | 17.2 | 77.6% | 21.7 | 91.7% | |
| Fixed Interest and Cash | 4.9 | 22.4% | 2.0 | 8.3% | |
| Total Long Portfolio | 22.1 | 100.0% | 23.7 | 100.0% | |
| Total Short Portfolio | (0.0) | (0.0%) | (0.0) | (0.0%) | |
| Total Fund Size | $22.1m | $23.7m | |||
| No. | No. | ||||
| Total ordinary shares on issue | 19,767,646 | 20,200,443 | |||
| Total options on issue | 13,027,781 | 12,594,984 |
At 31 January 2013 the major securities held in the portfolio were as follows:
| Code | Company | Market Value $ |
Market Value as % Gross Assets |
|---|---|---|---|
| BKW | Brickworks Limited | 778,515 | 3.3% |
| INA | Ingenia Communities Group | 746,161 | 3.1% |
| HIL | Hills Holdings Limited | 707,442 | 3.0% |
| TEN | Ten Network Holdings Limited | 701,563 | 3.0% |
| RHG | RHG Limited | 683,848 | 2.9% |
| CYG | CoventryGroupLimited | 668,961 | 2.8% |
| SVW | Seven GroupHoldings Limited | 644,155 | 2.7% |
| CCQ | Contango Capital Partners Limited | 580,254 | 2.4% |
| BLD | Boral Limited | 545,231 | 2.3% |
| SDG | Sunland GroupLimited | 538,961 | 2.3% |
| FBU | Fletcher BuildingLimited | 528,000 | 2.2% |
| CRZ | Carsales.Com Limited | 516,766 | 2.2% |
| FXJ | Fairfax Media Limited | 504,576 | 2.1% |
| CSR | CSR Limited | 499,009 | 2.1% |
| CPU | Computershare Limited | 476,469 | 2.0% |
| MYR | Myer Holdings Limited | 475,401 | 2.0% |
| QAN | Fairfax Media Limited | 474,300 | 2.0% |
| AGF | AMP Capital China Growth Fund | 466,212 | 2.0% |
| BSL | Bluescope Steel Limited | 462,498 | 1.9% |
| TLS | Telstra Corporation Limited | 458,744 | 1.9% |
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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 January 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% +16.2% |
-15.2% -22.2% +13.8% +12.2% -7.0% +21.4% |
+17.4% +31.8% +8.9% -0.7% +12.5% -5.2% |
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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 | Since Inception |
||
| Investment Portfolio* | +1.4% | +1.9% | +0.7% | +2.7% | +5.3% | +87.9% | |
| All Ords Accum. | +2.1% | +3.0% | +0.3% | +3.4% | +5.1% | -4.9% |
*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