WAM ACTIVE LIMITED — Net Asset Value 2014

Jul 13, 2014

AS AT 30 JUNE 2014

Investment Update & Net Tangible Assets Report

Performance

Performance
						Since
Performance at 30 June 2014 WAA Investment Portfolio*	1 Mth 0.6%	6 Mths 5.9%	1 Yr 19.4%	3 Yrs %pa 13.3%	5 Yrs %pa 14.7%	Inception %pa (Jan-08) 13.1%
S&P/ASX All Ordinaries Accumulation Index	-1.4%	2.7%	17.6%	9.7%	11.0%	1.6%
Outperformance	+2.0%	+3.2%	+1.8%	+3.6%	+3.7%	+11.5%
UBS Bank Bill Index Outperformance	0.2% +0.4%	1.3% +4.6%	2.7% +16.7%	3.6% +9.7%	3.9% +10.8%	4.4% +8.7%

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

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WAM Active Limited

WAM Active Limited
ASX Code	WAA
Listed	Jan 2008
Gross assets	$37.8m
Market cap	$43.9m
Share price	$1.28
NTA before tax	$1.06
Shares on issue	34,316,532
Fully franked annualised interim dividend (FY2014)	9.6c
Dividend yield	7.5%

Net Tangible Assets (NTA) figures

Net Tangible Assets (NTA) figures
NTA before tax	106.02c
NTA after tax and before tax on unrealised gains	106.08c*
NTA after tax	105.97c**

*Includes tax assets of 0.06 cents per share.

**Includes the net effect of 0.06 cents of tax assets and 0.11 cents of deferred tax liabilities.

Market overview

The S&P/ASX All Ordinaries Accumulation Index (‘Index’) fell 1.4% in June to finish the 2014 financial year up 17.6%. The Index is now up a remarkable 42% since its last low in June 2012 driven higher by investors seeking yield as interest rates remain at historical lows. During the month, the Reserve Bank of Australia kept the cash rate at 2.5% with Governor Stevens’ language indicating rates would stay at these levels for a prolonged period. Ahead of the reporting season, numerous retailers downgraded their profit forecasts reflecting tougher trading conditions due to weaker consumer confidence following the May Federal Budget.

Economic data continues to provide evidence of a sustainable recovery in the United States prompting the Federal Reserve to announce last week that its stimulatory bond buying program would be completed by October this year. Although a survey of the members of the central bank have indicated they expect US interest rates will start to rise early in the new calendar year, we expect this will occur sooner.

We maintain our cautious stance towards Australia’s equity market in the near term as reflected by the investment portfolio’s higher than average cash weighting. We are confident that despite prevailing market conditions, opportunities will continue to present themselves and our current cash levels position us well to capitalise on these as they arise.

Priority offer to WAM Active Shareholders in Future Generation Investment Fund

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

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

Mark Tobin Equity Analyst

Meredith Hemsley Corporate Affairs

Future Generation Investment Fund Limited was launched recently with the prospectus to invest in the company now available. See further details below.

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AS AT 30 JUNE 2014

Investment Update & Net Tangible Assets Report

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Diversified portfolio

Diversified portfolio
May 2014 Investment Type $m %	June 2014
	$m %
Listed Equities 22.7 55.1	20.8 53.5
Fixed Interest & Cash 18.6 44.9
	18.1 46.5
Long Portfolio 41.3 100.0%
	38.9 100.0%
Short Portfolio (3.8) (9.3)	(1.1) (2.8)
Gross Assets $37.5m
	$37.8m
Total shares on issue 34,316,532
	34,316,532

Top holdings

		Market Value as %
Code	Company	Gross Assets
CBAPA	CBA Perpetual Exc Resale Listed Sec - PERLS V	4.3%
CYA	CenturyAustralia Investments Limited	4.3%
MQA	Macquarie Atlas Roads Group	4.0%
WIC	Westoz Investment CompanyLimited	3.5%
IPE	IPE Limited	3.3%
HIL	Hills Limited	3.3%
CGF	Challenger Limited	3.2%
CYG	Coventry Group Limited	2.2%
CCP	Credit CorpGroupLimited	2.2%
MYR	Myer Holdings Limited	2.1%
GMA	Genworth Mortgage Insurance Australia Limited	2.1%
HHV	Hunter Hall Global Value Limited	2.0%
IBC	Ironbark Capital Limited	1.8%
WBCPB	WBC Stapled Preferred SecurityII	1.7%
TWE	Treasury Wine Estates Limited	1.4%
SDG	Sunland GroupLimited	1.4%
IVC	Invocare Limited	1.2%
CTN	Contango MicrocapLimited	1.2%
CCL	Coca-Cola Amatil Limited	1.1%
GJT	Galileo Japan Trust	1.0%

Sector allocation

28.2% 46.5% 15.9% -2.8% 0.5% 3.9% 0.7% 3.4% 0.9% Financials 28.2% Industrials 15.9% Consumer Discretionary 3.9% Consumer Staples 3.4% Telecommunication Services 0.9% Materials 0.7% Health Care 0.5% Short Stock -2.8% Cash and Fixed Interest 46.5%

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AS AT 30 JUNE 2014

Investment Update & Net Tangible Assets Report

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Dividend growth

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.

On 30 April 2014 the Company paid a fully franked interim dividend of 4.8 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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*Annualised interim dividend

Priority offer to WAM Active Shareholders in Future Generation Investment Fund

Future Generation Investment Fund Limited was launched recently with the prospectus to invest in the company now available. In a first for the Australian market, investors can now gain unprecedented access to Australia’s best fund managers for 0.0% performance fees and 0.0% management fees. As fund managers, and many service providers, will be providing their services on a pro bono basis, this will allow the company to donate 1.0% of assets each year to children’s charities to invest in Australia’s future generation. Where the balance of the forgone fees is greater than the amount paid to charities, the balance will be for the benefit of shareholders. Investors are invited to attend the final presentations about this investment opportunity this week in Brisbane, Sydney and Melbourne. Details below:

Brisbane: Tuesday 15 July 2014, 10am – 11am, Brisbane Convention and Exhibition Centre Sydney: Wednesday 16 July 2014, 10am – 11am, Wesley Conference Centre Melbourne: Friday 18 July 2014, 10am – 11am, Morgans at 401

To RSVP, call 02 9247 6755 or email info@wamfunds.com.au.

For further information including the prospectus and online application form visit www.futuregeninvest.com.au.

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