WAM ACTIVE LIMITED — Net Asset Value 2015

Nov 11, 2015

Investment Update & Net Tangible Assets Report AS AT 31 OCTOBER 2015

Performance

Performance
							Since
Performance at		Fin			3 Yrs	5 Yrs	Inception %pa
31 October 2015	1 Mth	YTD	6 Mths	1 Yr	%pa	%pa	(Jan-08)
WAA Investment Portfolio*	4.3%	7.6%	6.9%	13.3%	13.6%	11.7%	12.6%
S&P/ASX All Ordinaries Accumulation Index	4.6%	-1.5%	-6.2%	0.4%	9.9%	6.8%	1.9%
Outperformance	-0.3%	+9.1%	+13.1%	+12.9%	+3.7%	+4.9%	+10.7%
UBS Bank Bill Index	0.2%	0.7%	1.1%	2.4%	2.7%	3.5%	4.1%
Outperformance	+4.1%	+6.9%	+5.8%	+10.9%	+10.9%	+8.2%	+8.5%

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

Net Tangible Assets (NTA) figures

The following NTA figures are after the 2.5 cents per share fully franked final dividend paid on 30 October 2015.

NTA before tax 101.29c
NTA after tax and before tax on unrealised gains 101.53c*
NTA after tax 101.47c**

~~*~~ Includes tax assets of 0.24 cents per share.

**Includes the net effect of 0.24 cents of tax assets and 0.06 cents of tax liabilities per share.

Market overview

The Australian equity market improved in October as it came close to recovering the 5.8% fall in the first quarter of the 2015-16 financial year. The S&P/ASX All Ordinaries Accumulation Index gained 4.6% for the month, the best monthly performance in over two years.

Economic data released included below consensus inflation figures leading to speculation of an interest rate cut by the Reserve Bank of Australia (RBA) on Melbourne Cup day, which did not eventuate. The decision by the major Australian banks to raise mortgage rates increases our view that the RBA may lower the cash rate in the coming months. With mortgage holders effectively receiving a rate rise, we will be monitoring closely the impact this may have on consumer sentiment and the broader economy.

Our discussions with various companies that we have visited recently have been consistent in their feedback with economic conditions remaining patchy. The mining sector remains very weak while select retail stocks continue to benefit from low interest rates. It appears this housing cycle has peaked and as such we have seen stocks in this sector underperform over the last six months. Recent falls in auction clearance rates in Sydney are a clear sign of this.

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WAM Active Limited

WAM Active Limited
ASX Code	WAA
Listed	Jan 2008
Gross assets	$36.1m
Market cap	$34.4m
Share price	$0.985
NTA before tax	$1.01
Shares on issue	34,909,728
Fullyfranked final dividend(FY2015)	2.5c

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

Tobias Yao Equity Analyst

James McNamara Communications Manager

We believe that in this subdued economic environment investment opportunities will continue to present themselves. We remain well positioned with our high levels of cash to preserve capital and take opportunities as they arise.

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AS AT 31 OCTOBER 2015

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Investment Update & Net Tangible Assets Report

Diversified portfolio

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||||||
|---|---|---|---|---|
|September 2015|October 2015|
|Investment Type|$m|%|$m|%|
|Listed Equities|25.6|71.1|29.7|79.5|
|Fixed Interest & Cash|10.4|28.9|7.7|20.5|
|Long Portfolio|36.0|100.0|37.4|100.0|
|Short Portfolio|(0.7)|(1.9)|(1.3)|(3.6)|
|Gross Assets|$35.3m|$36.1m|[]|
|Total shares on issue|34,693,760|34,909,728|[*]|

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• This figure is after the 2.5 cents per share ($659k) fully franked final dividend paid during the month.

** During the month, 216k shares were issued from the Dividend Reinvestment Plan (DRP) for the final dividend.

Top holdings

Sector allocation

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|---|---|---|---|---|
|Market|Market Value|
|Code|Company|Value|as % Gross|
|$|Assets|
|HHV|Hunter Hall Global Value Limited|2,635,312|7.3%|
|20.5%|
|CYA|Century Australia Investments Limited|1,476,644|4.1%|
|NUF|Nufarm Limited|1,233,110|3.4%|
|-3.6%|37.1%|
|AOG|Aveo Group|1,023,342|2.8%|1.3%|
|MYR|Myer Holdings Limited|1,006,831|2.8%|3.3%|
|3.8%|
|ALL|Aristocrat Leisure Limited|900,219|2.5%|
|4.2%|
|GTY|Gateway Lifestyle Group|865,027|2.4%|4.4%|
|5.2%|
|OFX|Ozforex Group Limited|802,081|2.2%|
|20.2%|
|XRO|Xero Limited|777,720|2.2%|
|PMV|Premier Investments Limited|777,058|2.2%|
|LLC|Lend Lease Group|772,720|2.1%|
|MQG|Macquarie Group Limited|772,414|2.1%|Financials 37.1%|
|PPT|Perpetual Limited|757,317|2.1%|Consumer Discretionary 20.2%|
|Industrials 5.2%|
|SPO|Spotless Group Holdings Limited|747,693|2.1%|
|Information Technology 4.4%|
|CBA|Commonwealth Bank of Australia|745,355|2.1%|
|Consumer Staples 4.2%|
|HFA|HFA Holdings Limited|740,319|2.1%|
|Health Care 3.8%|
|MYX|Mayne Pharma Group Limited|738,733|2.0%|
|Materials 3.3%|
|FLT|Flight Centre Travel Group Limited|725,338|2.0%|Energy 1.3%|
|SGF|SG Fleet Group Limited|695,590|1.9%|Short Stock -3.6%|
|DMP|Domino's Pizza Enterprises Limited|694,705|1.9%|Cash and Fixed Interest 20.5%|

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Investment Update & Net Tangible Assets Report AS AT 31 OCTOBER 2015

Dividends

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On 30 October 2015, the Company paid a fully franked final dividend for FY15 of 2.5 cents per share. The Directors intend to pay an interim dividend in FY2016, which will be announced with the release of WAA’s half year results in February 2016, 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 usually paid on a six-monthly basis and the dividend reinvestment plan is available to shareholders for both the interim and final dividend.

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 2014/15
Return of Capital Fully franked dividends
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Upcoming investor presentations

Date	City	Location	Time
Thursday 19 November 2015	Perth	Parmelia Hilton 14 Mill Street	10:00am – 12:00pm
Tuesday 24 November 2015	Sydney	Wesley Centre Auditorium 220 Pitt Street	WAA AGM 9:30am – 10:00am Presentation 11:00am – 12:30pm
Wednesday 25 November 2015	Adelaide	The Playford 120 North Terrace	10:00am – 12:00pm
Thursday 26 November 2015	Melbourne	Rydges Melbourne 186 Exhibition Street	10:00am – 12:00pm
Friday 27 November 2015	Brisbane	Brisbane Convention & Exhibition Centre Cnr Merivale & Glenelg Street South Bank	10:00am – 12:00pm
Monday 30 November 2015	Canberra	Belconnen Premier Inn 110 Benjamin Way Belconnen	10:00am – 12:00pm

If you wish to attend one of our investor presentations, please RSVP by email to info@wamfunds.com.au or call our office on (02) 9247 6755.

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