WAM ACTIVE LIMITED — Net Asset Value 2014

Dec 11, 2014

AS AT 30 NOVEMBER 2014

Investment Update & Net Tangible Assets Report

Performance

Performance
							Since Inception
Performance at			Fin		3 Yrs	5 Yrs	%pa
30 November 2014	1 Mth	6 Mths	YTD	1 Yr	%pa	%pa	(Jan-08)
WAA Investment Portfolio* S&P/ASX All Ordinaries Accumulation Index	0.3% -3.2%	1.1% -1.1%	0.5% 0.3%	5.5% 4.0%	13.0% 13.0%	9.3% 6.8%	12.4% 1.6%
Outperformance	+3.5%	+2.2%	+0.2%	+1.5%	+0.0%	+2.5%	+10.8%
UBS Bank Bill Index Outperformance	0.2% +0.1%	1.3% -0.2%	1.1% -0.6%	2.7% +2.8%	3.2% +9.8%	3.9% +5.4%	4.3% +8.1%

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WAM Active Limited

WAM Active Limited
ASX Code	WAA
Listed	Jan 2008
Gross assets	$35.2m
Market cap	$41.6m
Share price	$1.20
NTA before tax	$1.01
Shares on issue	34,693,760
Fully franked dividends (FY2014)	9.6c
Dividendyield	8.0%

• Investment performance and Index returns are before expenses, fees and taxes.

Net Tangible Assets (NTA) figures

Net Tangible Assets (NTA) figures
NTA before tax 100.89c
NTA after tax and before tax on unrealised gains 101.53c*
NTA after tax 101.39c**

*Includes tax assets of 0.64 cents per share.

**Includes the net effect of 0.64 cents of tax assets and 0.14 cents of deferred tax liabilities.

Market overview

The S&P/ASX All Ordinaries Accumulation Index fell 3.2% during November, underperforming world markets. The oil price suffered sharp declines in November, down 18%, pushing the energy sector 13.1% lower. During the month, the ASX experienced its worst two-day decline since the GFC.

Investment objectives

• Deliver a regular income stream via fully franked dividends

• Provide a positive return with low volatility, after fees, over most periods of time

• Preserve capital

Company overview

WAM Active Limited (ASX: WAA) is a Listed Investment Company managed by Wilson Asset Management Group. Listed in January 2008, WAA provides investors with exposure to an active trading style with the aim of achieving a sound return with a low correlation to traditional markets.

Investment & Management Team

US equity markets continued to perform well in November, with the S&P/500 up 2.5% for the month, buoyed by a better than expected earnings season. In Europe, inflation fell to five-year lows renewing calls for the European Central Bank to expand its asset buying program.

We continue to be cautious in our short term view of Australia’s equity market. The AGM season provided mixed news flow and recent GDP data has also suggested that Australia is in a technical income recession, with quarterly growth struggling to outpace core inflation. Our investment portfolio continues to be conservatively positioned through above average cash holdings. We are well positioned to ride through the fluctuations in the market as we have done in past cycles and take advantage of any market dislocation.

Geoff Wilson Chairman/Portfolio Manager

Kate Thorley Chief Executive Officer/ Company Secretary

Chris Stott Chief Investment Officer/ Portfolio Manager

Martin Hickson Senior Equity Analyst/Dealer

Matthew Haupt Senior Equity Analyst

Tobias Yao Equity Analyst

Melanie Shaw Corporate Affairs

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AS AT 30 NOVEMBER 2014

Investment Update & Net Tangible Assets Report

Diversified portfolio

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Diversified portfolio
October 2014 Investment Type $m %	November 2014
	$m %
Listed Equities 17.1 45.4	16.9 47.5
Fixed Interest & Cash 20.5 54.6	18.6 52.5
Long Portfolio 37.6 100.0%
	35.5 100.0%
Short Portfolio (2.4) (6.4)
	(0.3) (0.9)
Gross Assets $35.2m
	$35.2m
Total shares on issue 34,693,760
	34,693,760

Top holdings

		Market Value as %
Code	Company	Gross Assets
CYA	CenturyAustralia Investments Limited	4.8%
HHV	Hunter Hall Global Value Limited	4.7%
IBC	Ironbark Capital Limited	2.2%
REC	Recall Holdings Limited	2.2%
WIC	Westoz Investment Company Limited	2.1%
MPL	Medibank Private Limited	2.1%
ALL	Aristocrat Leisure Limited	2.0%
IPE	IPE Limited	2.0%
APO	APN Outdoor GroupLimited	2.0%
HIL	Hills Limited	1.7%
AMM	Amcom Telecommunications Limited	1.6%
EHE	Estia Health Limited	1.5%
SDG	Sunland GroupLimited	1.4%
IIN	iiNet Limited	1.3%
SDA	SpeedCast International Limited	1.3%
CYG	CoventryGroupLimited	1.3%
TSE	Transfield Services Limited	1.2%
MMS	McMillan Shakespeare Limited	1.2%
GJT	Galileo Japan Trust	1.1%
IFL	IOOF Holdings Limited	1.1%

Sector allocation

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29.5%
52.5%
6.6%
4.9%
4.0%
-0.9% 1.6%
0.1% 0.8%
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Financials 29.5%

Industrials 6.6%

Consumer Discretionary 4.9% Telecommunication Services 4.0% Information Technology 1.6% Health Care 0.8% Materials 0.1% Short Stock -0.9% Cash and Fixed Interest 52.5%

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Investment Update & Net Tangible Assets Report AS AT 30 NOVEMBER 2014

Dividends

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The Board is committed to paying an increasing stream of fully franked dividends to shareholders, provided the Company has sufficient profit reserves and franking credits, and it is within prudent business practices. The Company’s ability to generate franking credits is dependent upon the receipt of franked dividends from investments and the payment of tax. Dividends are paid on a six-monthly basis and the dividend reinvestment plan is available to shareholders for both the interim and final dividend.

The estimated profit reserve as at 30 November 2014 is 1.8 cents per share and the franking account has a deficit of $405,955.

On 24 October 2014, the Company paid a fully franked final dividend of 4.8 cents per share. This brings the FY14 full year fully franked dividend to 9.6 cents per share.

WAM Active dividends since inception

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Cents per share
12.0
10.0
8.0
6.0
4.0
2.0
0.0
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Fully franked dividends
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