WAM ACTIVE LIMITED — Net Asset Value 2015

Jul 13, 2015

Investment Update & Net Tangible Assets Report AS AT 30 JUNE 2015

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Performance

Performance
						Since
						Inception
Performance at				3 Yrs	5 Yrs	%pa
30 June 2015	1 Mth	6 Mths	1 Yr	%pa	%pa	(Jan-08)
WAA Investment Portfolio*	-1.0%	4.2%	5.5%	13.3%	11.3%	12.1%
S&P/ASX All Ordinaries Accumulation Index	-5.4%	3.3%	5.7%	14.5%	9.4%	2.2%
Outperformance	+4.4%	+0.9%	-0.2%	-1.2%	+1.9%	+9.9%
UBS Bank Bill Index	0.2%	1.2%	2.6%	2.9%	3.6%	4.2%
Outperformance	-1.2%	+3.0%	+2.9%	+10.4%	+7.7%	+7.9%

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

Net Tangible Assets (NTA) figures

Net Tangible Assets (NTA) figures
NTA before tax 99.29c
NTA after tax and before tax on unrealised gains 99.93c*
NTA after tax 99.90c**

*Includes tax assets of 0.64 cents per share.

**Includes the net effect of 0.64 cents of tax assets and 0.03 cents of tax liabilities

Market overview

The S&P/ASX All Ordinaries Accumulation Index closed down 5.4% in June leading to a below average return for the financial year of 6%. The index suffered from a fall in oil and iron ore prices, earnings downgrades and international uncertainty arising from the ongoing Greek debt crisis. Having fallen 8% since the late April highs, the Australian market is approaching a technical correction.

International equity markets were highly volatile over the month as the Eurozone instability forced a global sell off in equities. Greece and its European Union and International Monetary Fund (IMF) creditors failed to break their deadlock in the lead up to a 30 June 2015 payment deadline. Greece then became the first developed nation to default on an IMF loan when it missed the deadline. European markets faired worst as a result with the FTSE100 losing 6.7% and the German DAX down 4.1% for the month. In the US the S&P500 fell 2.1% while the Dow Jones dropped 2.2% despite the release of positive economic data and the potential further delay of monetary tightening from the US Federal Reserve.

Notwithstanding the market’s recent weakness, we believe valuations remain full. With our above average cash levels, we remain well positioned to seize on opportunities as they arise.

WAM Active Limited

WAM Active Limited
ASX Code	WAA
Listed	Jan 2008
Gross assets	$35.0m
Market cap	$34.2m
Share price	$0.985
NTA before tax	$0.993
Shares on issue	34,693,760
Capital return(1HFY2015)	4.0c

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

Future Generation Global priority offer to WAM Active shareholders

Future Generation Global Investment Company Limited was launched recently with the prospectus to invest in the company now available at www.futuregeninvest.com.au/global. See further details below.

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AS AT 30 JUNE 2015

Investment Update & Net Tangible Assets Report

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Diversified portfolio

Diversified portfolio
May 2015 Investment Type $m %	June 2015
	$m %
Listed Equities 24.2 67.3	23.0 65.7
Fixed Interest & Cash 11.8 32.7	12.0 34.3
Long Portfolio 36.0 100.0%
	35.0 100.0%
Short Portfolio (0.6) (1.7)	(0.0) (0.0)
Gross Assets $35.4m
	$35.0m
Total shares on issue 34,693,760
	34,693,760

Top holdings

Sector allocation

		Market	Market Value
Code	Company	Value	as % Gross
		$	Assets
HHV	Hunter Hall Global Value Limited	2,532,847	7.2%
CYA	CenturyAustralia Investments Limited	1,558,176	4.5%	34.3%
BAP	Burson GroupLimited	1,301,180	3.7%			32.1%
HVN	HarveyNorman Holdings Limited	1,177,011	3.4%
QAN	Qantas Airways Limited	1,056,890	3.0%
MYX SGF MMS	Mayne Pharma Group Limited SG Fleet Group Limited McMillan Shakespeare Limited	1,017,212 906,633 815,471	2.9% 2.6% 2.3%	2.1% 2.0% 0.9% 0.8%		11.9%
GTY	GatewayLifestyle Group	781,663	2.2%	7.1%	8.8%
PMV	Premier Investments Limited	746,372	2.1%
SDG	Sunland Group Limited	738,913	2.1%
PRY	Primary Health Care Limited	720,992	2.1%	Financials 32.1%
IIN	iiNet Limited	692,599	2.0%	Consumer Discretionary		11.9%
BKL	Blackmores Limited	689,925	2.0%	Industrials 8.8%
ADH	Adairs Limited	662,484	1.9%	Health Care 7.1%
TGG	Templeton Global Growth Fund Limited	655,414	1.9%	Telecommunication Services 2.1%
ECX	Eclipx Group Limited	643,183	1.8%	Consumer Staples 2.0%
GJT	Galileo Japan Trust	639,885	1.8%	Materials 0.9%
BTT	BT Investment Management Limited	627,835	1.8%	Information Technology 0.8%
AOG	Aveo Group	570,324	1.6%	Cash and Fixed	Interest	34.3%

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Investment Update & Net Tangible Assets Report AS AT 30 JUNE 2015

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Capital Management – Return of Capital

On 26 February 2015, the Board of WAM Active announced the intention to pay shareholders a 4.0 cents per share Return of Capital. As at 31 December 2014, the Company’s net assets were less than issued capital. The Directors recognise investors have cash flow needs and therefore declared a 4.0 cents per share Return of Capital, which was approved by shareholders at an Extraordinary General Meeting held in Sydney on 19 May 2015. WAM Active traded exReturn of Capital on 21 May 2015 and the payment was made on 1 June 2015.

Dividends

The Board did not declared an interim dividend for the half year to 31 December 2014. While the Board is committed to paying an increasing stream of fully franked dividends to shareholders, this is dependent on the Company having sufficient profit reserves and the payment being within prudent business practices. When a dividend is declared, it is usually paid on a six-monthly basis.

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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Priority offer to WAM Active shareholders in Future Generation Global Investment Company Limited

WAM Active shareholders are entitled to share in the $110 million priority allocation to the Future Generation Global Investment Company Limited (FGG) initial public offering (IPO). FGG will be Australia’s first internationally focused listed investment company with the dual objectives of providing shareholders with diversified exposure to selected global equities and changing the lives of young Australians affected by mental illness. FGG will charge shareholders 0.0% management fees and 0.0% performance fees as the participating fund managers will manage the capital on a pro bono basis. This arrangement allows the company to donate 1.0% of its net tangible assets each year to selected Australian non-profits working to improve the mental health of young Australians. Further information, including the prospectus and online application form, is available at www.futuregeninvest.com.au/global.

WAM Active shareholders are invited to attend the final FGG presentations this week in Brisbane and Canberra.

Brisbane: Wednesday 15 July 2015, 10am – 11am, Mercure Hotel, 85-87 North Quay, Brisbane Canberra: Friday 17 July 2015, 10am – 11am, Belconnen Premier Hotel, 110 Benjamin Way, Belconnen

To RSVP, call (02) 9247 9202 or email info@futuregeninvest.com.au

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