WAM ACTIVE LIMITED — Net Asset Value 2015

Mar 10, 2015

Investment Update & Net Tangible Assets Report AS AT 28 FEBRUARY 2015

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Performance

Performance
							Since Inception
Performance at			Fin		3 Yrs	5 Yrs	%pa
28 February 2015	1 Mth	6 Mths	YTD	1 Yr	%pa	%pa	(Jan-08)
WAA Investment Portfolio* S&P/ASX All Ordinaries Accumulation Index	3.7% 7.0%	1.8% 7.1%	4.9% 12.7%	6.4% 13.6%	13.3% 15.2%	10.8% 9.5%	12.6% 3.2%
Outperformance	-3.3%	-5.3%	-7.8%	-7.2%	-1.9%	+1.3%	+9.4%
UBS Bank Bill Index Outperformance	0.2% +3.5%	1.4% +0.4%	1.8% +3.1%	2.7% +3.7%	3.1% +10.2%	3.8% +7.0%	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 104.03c
NTA after tax and before tax on unrealised gains 103.83c
NTA after tax 103.73c

Market overview

The S&P/ASX All Ordinaries Accumulation Index continued its strong start to 2015 to close up 7% in February. The market rally was sparked by the Reserve Bank of Australia’s surprise decision to reduce the cash rate to 2.25%. Our expectation is that interest rates will be reduced again during the remainder of 2015 which will have a positive impact on Australian economic growth which is waning.

Domestic earnings season revealed little change in the environment domestically for many companies, with weak revenues and a focus on costs. Interest in expansion was also still limited and the emphasis on distributing earnings remained, with more companies lifting dividends. Corporate earnings continued to be weak, in particular in the resources sector which is adjusting to the end of the mining boom. Companies linked to the strong residential housing sector delivered strong results as expected, in particular companies exposed to the Sydney housing market.

In addition to low interest rates both domestically and globally, we expect four drivers will continue to define the Australian equities market throughout the remainder of 2015: global quantitative easing, a falling Australian dollar, a low oil price and corporate earnings. Overall, we remain cautious and are well positioned to capitalise on opportunities as they arise.

WAM Active Limited

WAM Active Limited
ASX Code	WAA
Listed	Jan 2008
Gross assets	$36.6m
Market cap	$39.0m
Share price	$1.125
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 28 FEBRUARY 2015

Investment Update & Net Tangible Assets Report

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Diversified portfolio

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|---|---|---|---|---|
|January 2015|February 2015|
|Investment Type|$m|%|$m|%|
|Listed Equities|18.0|50.2|29.8|81.5|
|Fixed Interest & Cash|17.8|49.8|6.8|18.5|
|Long Portfolio|35.8|100.0%|36.6|100.0%|
|Short Portfolio|(0.4)|(1.1)|(0.0)|(0.0)|
|Gross Assets|$35.4m|$36.6m|
|Total shares on issue|34,693,760|34,693,760|

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Top holdings

Sector allocation

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||||||
|---|---|---|---|---|
|Market Value|Market Value|
|Code|Company|$|as % Gross|
|Assets|
|HHV Hunter Hall Global Value Limited|2,144,690|5.9%|18.5%|
|CYA|Century Australia Investments Limited|1,820,239|5.0%|0.2%|
|IFL|IOOF Holdings Limited|893,564|2.4%|1.9%|
|2.3%|
|QAN Qantas Airways Limited|855,535|2.3%|
|39.7%|
|MYR Myer Holdings Limited|838,976|2.3%|2.9%|
|5.0%|
|ALL|Aristocrat Leisure Limited|829,099|2.3%|
|ANN Ansell Limited|807,812|2.2%|6.5%|
|MQG Macquarie Group Limited|807,070|2.2%|
|9.3%|
|13.7%|
|FXJ|Fairfax Media Limited|782,255|2.1%|
|BHP|BHP Billiton Limited|776,541|2.1%|
|AMP AMP Limited|774,252|2.1%|Financials 39.7%|
|WBC Westpac Banking Corporation|761,178|2.1%|Consumer Discretionary 13.7%|
|TLS|Telstra Corporation Limited|754,335|2.1%|Industrials 9.3%|
|IPE|IPE Limited|750,435|2.1%|Materials 6.5%|
|TWE Treasury Wine Estates Limited|743,687|2.0%|Telecommunication Services 5.0%|
|ORA Orora Limited|738,386|2.0%|Health Care 2.9%|
|ANZ|Australia & New Zealand Banking Group Limited|733,976|2.0%|Consumer Staples 2.3%|
|CBA|Commonwealth Bank of Australia|721,204|2.0%|Energy 1.9%|
|EGP Echo Entertainment Group Limited|712,363|1.9%|Information Technology 0.2%|
|CSR CSR Limited|712,046|1.9%|Cash and Fixed Interest 18.5%|

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Investment Update & Net Tangible Assets Report AS AT 28 FEBRUARY 2015

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Capital Management – 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, subject to shareholder approval at an Extraordinary General Meeting (EGM) to be held on 19 May 2015.

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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