WAM ACTIVE LIMITED — Net Asset Value 2016

Jun 13, 2016

AS AT 31 MAY 2016

Investment Update & Net Tangible Assets Report

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Performance

WAM Active Limited

Performance
							Since
							Inception
Performance at			Fin		3 Yrs	5 Yrs	%pa
31 May 2016	1 Mth	6 Mths	YTD	1 Yr	%pa	%pa	(Jan-08)
WAA Investment Portfolio*	4.5%	4.8%	18.4%	17.3%	13.8%	12.2%	12.9%
S&P/ASX All Ordinaries Accumulation Index	3.1%	6.7%	4.4%	-1.2%	8.1%	7.3%	2.5%
Outperformance	+1.4%	-1.9%	+14.0%	+18.5%	+5.7%	+4.9%	+10.4%
UBS Bank Bill Index	0.2%	1.2%	2.1%	2.3%	2.5%	3.1%	4.0%
Outperformance	+4.3%	+3.6%	+16.3%	+15.0%	11.3%	+9.1%	+8.9%

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

Net Tangible Assets (NTA) figures

Net Tangible Assets (NTA) figures
NTA before tax 104.87c
NTA after tax and before tax on unrealised gains 104.10c
NTA after tax 104.08c

Market overview

The S&P/ASX All Ordinaries Accumulation Index gained 3.1% for the month.

Global equity markets fell early in the month but rallied following commentary from the US Federal Reserve, which indicated a possible rate hike in June. The comments spurred the domestic market, which was also boosted by a rate cut and dovish inflation outlook from the Reserve Bank of Australia (RBA).

Australia’s major banks reported interim results or trading updates, which showed structural and cyclical headwinds still remain in the sector. The bank sector outperformed on the back of the rate cut, lifting the overall index during the month.

We remain cautious on the short-term performance of the Australian equity market. Our cash levels ensure we are well positioned to find opportunities in the market as they arise.

Zenith Investment Partners Product Assessment

Last week WAM Active was rated by independent research house Zenith Investment Partners. You can read the full report on our website at www.wamfunds.com.au.

ASX Code	WAA
Listed	Jan 2008
Gross assets	$38.2m
Market cap	$35.5m
Share price	$1.01
NTA before tax	$1.05
Shares on issue	35,109,715
Fully franked annualised interim dividend (FY2016)	5.0c
Dividendyield	5.0%

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

Chris Stott Chief Investment Officer/ Portfolio Manager

Linda Vo Company Secretary

Matthew Haupt Portfolio Manager

Martin Hickson Senior Equity Analyst/Dealer

Tobias Yao Senior Equity Analyst

John Ayoub Senior Equity Analyst

Oscar Oberg Equity Analyst

James McNamara Head of Corporate Affairs

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AS AT 31 MAY 2016

Investment Update & Net Tangible Assets Report

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Diversified portfolio

Diversified portfolio
April 2016 Investment Type $m %	May 2016
	$m %
Listed Equities 22.9 61.0	25.0 62.4
Fixed Interest & Cash 14.7 39.0	15.1 37.6
Long Portfolio 37.6 100.0	40.1 100.0
Short Portfolio (1.1) (3.0)	(1.9) (4.8)
Gross Assets $36.5m	$38.2m
Total shares on issue 35,109,715	35,109,715

Top holdings

Top	holdings
		Market	Market Value
Code	Company	Value	as % Gross
		$	Assets
HHV PBG	Hunter Hall Global Value Limited Pacific Brands Limited	2,801,676 1,889,181	7.3% 5.0%
APN	APN News & Media Limited	1,530,776	4.0%
CYA	CenturyAustralia Investments Limited	1,476,644	3.9%
MTS	Metcash Limited	1,207,952	3.2%
MQA MVP	Macquarie Atlas Roads Group Medical Developments International Limited	1,191,843 1,081,050	3.1% 2.8%
AGF TGG	AMP Capital China Growth Fund Templeton Global Growth Fund Limited	969,776 844,606	2.5% 2.2%
TWE	TreasuryWine Estates Limited	769,461	2.0%
AOG	Aveo Group	766,185	2.0%
IFN	Infigen EnergyLimited	762,909	2.0%
ADA	Adacel Technologies Limited	722,579	1.9%
AJA	Astro Japan Property Group Limited	715,813	1.9%
DMP	Domino's Pizza Enterprises Limited	561,359	1.5%
GJT	Galileo Japan Trust	557,539	1.5%
WIC	Westoz Investment CompanyLimited	531,652	1.4%
CYB	CYBG PLC	505,958	1.3%
SSM	Service Stream Limited	470,063	1.2%
SXE	Southern Cross Electrical Engineering Limited	467,375	1.2%

Sector allocation

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37.6%
30.5%
-4.8%
12.2%
1.9%
2.7%
6.8%
3.4% 4.9%
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Financials 30.5%

Consumer Discretionary 12.2% Industrials 6.8% Consumer Staples 4.9% Information Technology 3.4% Health Care 2.7% Utilities 1.9% Short Stock -4.8% Cash and Fixed Interest 37.6%

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Investment Update & Net Tangible Assets Report AS AT 31 MAY 2016

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Dividends

On 29 April 2016, the Company paid a fully franked interim dividend of 2.5 cents per share. Dividends are usually paid on a six-monthly basis, 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.

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 2015/16
Return of Capital Fully franked dividends
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*Annualised interim dividend

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