WAM ACTIVE LIMITED — Net Asset Value 2015

Jun 11, 2015

AS AT 31 MAY 2015

Investment Update & Net Tangible Assets Report

Performance

Performance
							Since Inception
Performance at			Fin		3 Yrs	5 Yrs	%pa
31 May 2015	1 Mth	6 Mths	YTD	1 Yr	%pa	%pa	(Jan-08)
WAA Investment Portfolio* S&P/ASX All Ordinaries Accumulation Index	0.3% 0.6%	6.0% 11.3%	6.6% 11.7%	7.2% 10.1%	14.1% 16.7%	11.4% 10.0%	12.4% 3.0%
Outperformance	-0.3%	-5.3%	-5.1%	-2.9%	-2.6%	+1.4%	+9.4%
UBS Bank Bill Index Outperformance	0.2% +0.1%	1.3% +4.7%	2.4% +4.2%	2.6% +4.6%	2.9% +11.2%	3.7% +7.7%	4.2% +8.2%

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

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WAM Active Limited

	ASX Code	WAA
	Listed	Jan 2008
	Gross assets*	$35.4m
	Market cap	$36.6m
	Share price*	$1.055
	NTA before tax*	$1.00
	Shares on issue	34,693,760
	Capital return(1HFY2015)	4.0c
	* Ex- Return of Capital 4.0 cents per share
	payable 1 June 2015.

Net Tangible Assets (NTA) figures

The following NTA figures have been adjusted for the 4.0 cents per share Return of Capital which traded Ex-Return of Capital on 21 May 2015 and is payable on 1 June 2015.

payable on 1 June 2015.
NTA before tax 100.30c
NTA after tax and before tax on unrealised gains 100.59c*
NTA after tax 100.60c**

*Includes tax assets of 0.29 cents per share.

**Includes the net effect of 0.30 cents of tax assets

Market overview

After a volatile month the S&P/ASX All Ordinaries Accumulation Index closed up 0.6%. The index suffered from continued selling in the major banks which commenced in late April on news of potential regulatory tightening. Further monetary easing from the Reserve Bank of Australia, in the form of a 0.25% rate cut, did little to encourage sentiment as the market interpreted the RBA’s minutes as a sign the loosening cycle had perhaps come to an end. The market also responded to poor Australian Bureau of Statistics expenditure data, which showed Australia’s business investment is set to drop dramatically over the next two years. This contributed to a 3.3% decline in the Australian dollar over the month.

In other domestic news, the release of the 2015-16 federal budget saw the government’s deficit forecast revised up to $35.1 billion, more than double the estimate from 12 months ago. On the whole the budget was well received, particularly the tax cuts for small businesses along with a $20,000 tax deductible allowance for businesses earning less than $2 million in revenue per year, which spurred the retail sector.

Global equity markets were mixed this month. Importantly, US Federal Reserve Chairman Janet Yellen commented the US economy was “well positioned” for continued growth and indicated it would take initial steps towards normalising monetary policy at some point this year.

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 continue to believe valuations are full and remain well positioned to seize on opportunities in the market when they arise.

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AS AT 31 MAY 2015

Investment Update & Net Tangible Assets Report

Diversified portfolio

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Diversified portfolio
April 2015 Investment Type $m %	May 2015
	$m %
Listed Equities 26.3 71.1	24.2 67.3
Fixed Interest & Cash 10.7 28.9	11.8 32.7
Long Portfolio 37.0 100.0%	36.0 100.0%
Short Portfolio (0.3) (0.7)
	(0.6) (1.7)
Gross Assets $36.7m
	$35.4m*
Total shares on issue 34,693,760
	34,693,760

*The Gross Assets have been adjusted for the 4.0 cents per share Return of Capital which traded Ex on 21 May 2015.

Top holdings

Sector allocation

Top	holdings
		Market	Market Value
Code	Company	Value	as % Gross
		$	Assets
HHV	Hunter Hall Global Value Limited	2,461,565	7.0%
CYA	CenturyAustralia Investments Limited	1,667,758	4.7%
HVN	HarveyNorman Holdings Limited	1,204,756	3.4%
MYX	Mayne Pharma GroupLimited	1,162,961	3.3%
MMS RMD	McMillan Shakespeare Limited ResMed Inc	936,275 830,561	2.6% 2.3%
QAN GTY	Qantas Airways Limited GatewayLifestyle Group	799,684 765,000	2.3% 2.2%
PRY	PrimaryHealth Care Limited	763,908	2.2%
SGF	SG Fleet GroupLimited	758,184	2.1%
PMV	Premier Investments Limited	757,509	2.1%
BAP	Burson Group Limited	751,664	2.1%
SDG	Sunland Group Limited	718,442	2.0%
BKL	Blackmores Limited	715,865	2.0%
IIN	iiNet Limited	712,970	2.0%
GJT	Galileo Japan Trust	665,049	1.9%
NEC	Nine Entertainment Co. Holdings Limited	604,193	1.7%
IPE	IPE Limited	529,790	1.5%
IBC	Ironbark Capital Limited	497,690	1.4%
WIC	Westoz Investment Company Limited	465,223	1.3%

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24.7%
32.7%
-1.7%
14.1%
1.4%
2.3%
10.0%
2.3%
4.7% 7.8%
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Financials 24.7% Consumer Discretionary 14.1% Health Care 10.0% Industrials 7.8% Materials 4.7% Consumer Staples 2.3% Telecommunication Services 2.3% Information Technology 1.4% Short Stock -1.7% Cash and Fixed Interest 32.7%

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

Capital Management – Return of Capital

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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.

Key Return of Capital dates

Ex date:	21 May 2015
Record date:	25 May 2015
Payment date:	1 June 2015

Dividends

The Board has 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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