WAM ACTIVE LIMITED — Net Asset Value 2015

Apr 12, 2015

AS AT 31 MARCH 2015

Investment Update & Net Tangible Assets Report

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Performance

Performance
							Since Inception
Performance at			Fin		3 Yrs	5 Yrs	%pa
31 March 2015	1 Mth	6 Mths	YTD	1 Yr	%pa	%pa	(Jan-08)
WAA Investment Portfolio* S&P/ASX All Ordinaries Accumulation Index	0.9% 0.0%	5.8% 13.0%	5.8% 12.7%	6.7% 13.2%	13.2% 14.7%	10.4% 8.2%	12.6% 3.2%
Outperformance	+0.9%	-7.2%	-6.9%	-6.5%	-1.5%	+2.2%	+9.4%
UBS Bank Bill Index Outperformance	0.2% +0.7%	1.4% +4.4%	2.0% +3.8%	2.7% +4.0%	3.0% +10.2%	3.8% +6.6%	4.3% +8.3%

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

Net Tangible Assets (NTA) figures

Net Tangible Assets (NTA) figures
NTA before tax 104.02c
NTA after tax and before tax on unrealised gains 104.43c*
NTA after tax 104.35c**

These figures are after the payment of $220,000 in tax paid in March 2015. *Includes tax assets of 0.41 cents per share.

**Includes the net effect of 0.41 cents of tax assets and 0.08 cents of deferred tax liabilities.

Market overview

While the first quarter of 2015 was the best for the S&P/ASX All Ordinaries Accumulation Index in 24 years, gaining approximately 10.2%, it remained flat in the month of March. The market’s subdued performance was largely in response to the Reserve Bank of Australia’s decision to hold the cash rate at 2.25%. Weak data from China and continuing downward pressure on base metal and oil prices caused some turbulence during the month.

Domestic data presented few surprises with the market’s negative expectations largely proven accurate. In particular, employment, consumer confidence and housing finance approval figures released this month all painted a grim picture of the Australian economy. Australia’s performance against global equity markets was mixed, as the commencement of quantitative easing in Europe led to a rally in its markets. In the United States, the S&P500 has more than tripled from its low in March 2009, driven by three rounds of stimulus by the Federal Reserve.

Our outlook for the remainder of the year is mixed as we believe valuations are full, notwithstanding the likelihood of further rate cuts. The market is experiencing increasing initial public offering activity and we are actively monitoring and participating in value opportunities as they arise.

WAM Active Limited

WAM Active Limited
ASX Code	WAA
Listed	Jan 2008
Gross assets	$36.6m
Market cap	$39.6m
Share price	$1.14
NTA before tax	$1.04
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

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AS AT 31 MARCH 2015

Investment Update & Net Tangible Assets Report

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Diversified portfolio

Diversified portfolio
February 2015 Investment Type $m %	March 2015
	$m %
Listed Equities 29.8 81.5	25.9 70.3
Fixed Interest & Cash 6.8 18.5	11.0 29.7
Long Portfolio 36.6 100.0%
	36.9 100.0%
Short Portfolio (0.0) (0.0)
	(0.3) (0.7)
Gross Assets $36.6m
	$36.6m*
Total shares on issue 34,693,760
	34,693,760

*After the payment of $220,000 in tax paid in March 2015.

Top holdings

Top	holdings
		Market Value	Market Value
Code	Company	$	as % Gross
			Assets
HHV	Hunter Hall Global Value Limited	1,830,394	5.0%
CYA	Century Australia Investments Limited	1,829,769	5.0%
ALL	Aristocrat Leisure Limited	1,242,523	3.4%
BAP	Burson GroupLimited	1,170,099	3.2%
QAN	Qantas Airways Limited	1,162,303	3.2%
CTX	Caltex Australia Limited	1,069,470	2.9%
QUB	Qube Holdings Limited	889,812	2.4%
ANN	Ansell Limited	884,548	2.4%
TOL	Toll Holdings Limited	828,995	2.3%
FXJ	Fairfax Media Limited	762,299	2.1%
MYX	Mayne Pharma GroupLimited	738,988	2.0%
ORA	Orora Limited	738,386	2.0%
EGP	Echo Entertainment Group Limited	735,133	2.0%
SGF	SG Fleet Group Limited	728,096	2.0%
SDG	Sunland GroupLimited	710,228	1.9%
TWE	TreasuryWine Estates Limited	701,230	1.9%
QBE	QBE Insurance GroupLimited	697,640	1.9%
GJT	Galileo Japan Trust	660,946	1.8%
CDD	Cardno Limited	653,012	1.8%
CMG	Chandler Macleod Group Limited	602,459	1.6%

Sector allocation

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29.7%
24.7%
-0.7%
0.9%
15.3%
2.9%
3.4%
3.5% 14.1%
5.5%
Financials 24.7%
Industrials 15.3%
Consumer Discretionary 14.1%
Health Care 5.5%
Consumer Staples 3.5%
Materials 3.4%
Energy 2.9%
Information Technology 0.9%
Short Stock -0.7%
Cash and Fixed Interest 29.7%
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Investment Update & Net Tangible Assets Report AS AT 31 MARCH 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 have declared a 4.0 cents per share Return of Capital, which is subject to shareholder approval at an Extraordinary General Meeting (EGM). The EGM will be held on 19 May 2015 at the Wesley Conference Centre, Wesley Theatre, 220 Pitt Street Sydney from 9.00am to 9.30am.

Key Return of Capital dates

EGM to approve Return of Capital: 19 May 2015 Ex date (subject to shareholder approval): 21 May 2015 Record date (subject to shareholder approval): 25 May 2015 Payment date (subject to shareholder approval): 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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AS AT 31 MARCH 2015

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Upcoming investor presentations

Date	City	Location	Time
			EGM for Return of Capital
Tuesday 19 May 2015	Sydney	Wesley Conference Centre Wesley Theatre 220 Pitt Street	9.00am – 9.30am Presentation
			9.30am – 11.20am
Wednesday 20 May2015	Adelaide	The Playford 120 North Terrace	9.30am – 11.20am
Friday 22 May 2015	Brisbane	Brisbane Convention & Exhibition Centre Cnr Merivale & Glenelg Streets South Bank	9.30am – 11.20am
Tuesday 26 May2015	Melbourne	Rydges Hotel 186 Exhibition St	9.30am – 11.20am
Thursday 28 May 2015	Canberra	Belconnen Premier Hotel 110 Benjamin Way Belconnen	9.30am – 11.20am
Thursday 4 June 2015	Perth	Rydges Hotel 815 Hay Street	9.30am – 11.20am

If you wish to attend one of our investor presentations, please RSVP by email to info@wamfunds.com.au or call Mary-Ann on (02) 9258 4998.

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