WAM ACTIVE LIMITED — Net Asset Value 2016

Apr 13, 2016

AS AT 31 MARCH 2016

Investment Update & Net Tangible Assets Report

Performance

Performance
							Since
Performance at 31 March 2016	1 Mth	6 Mths	Fin YTD	1 Yr	3 Yrs %pa	5 Yrs %pa	Inception %pa (Jan-08)
WAA Investment Portfolio*	3.7%	9.2%	12.8%	12.4%	10.5%	11.3%	12.5%
S&P/ASX All Ordinaries Accumulation Index	4.7%	4.1%	-1.9%	-8.0%	5.6%	5.4%	1.7%
Outperformance UBS Bank Bill Index	-1.0% 0.2%	+5.1% 1.1%	+14.7% 1.7%	+20.4% 2.2%	+4.9% 2.6%	+5.9% 3.2%	+10.8% 4.0%
Outperformance	+3.5%	+8.1%	+11.1%	+10.2%	+7.9%	+8.1%	+8.5%

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

Net Tangible Assets (NTA) figures

The following NTA figures are before the 2.5 cents per share fully franked interim dividend due to be paid on 29 April 2016. The shares traded ex dividend on 13 April 2016.

NTA before tax	103.52c
NTA after tax and before tax on unrealised gains
	103.86c*
NTA after tax	103.85c**

~~~~ *Includes tax assets of 0.34 cents per share. Includes the net effect of 0.34 cents of tax assets and 0.01 cents of tax liabilities per share.

Market overview

March saw positive gains on the Australian share market with the S&P/ASX All Ordinaries Accumulation Index ending the month up 4.7%. During the month the US Federal Reserve said there would be fewer rate hikes this year than they previously anticipated, citing increasing risks to global growth. The US Fed’s ‘dovish’ comments, coupled with the European Central Bank’s latest measures to stimulate growth in the Euro Zone, led global equity markets to rally, while having a softening effect on the greenback.

Locally, the big four Australian banks weighed on the market towards the end of March with Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corporation (ASX: WBC) confirming their bad debt provisions were increasing mostly due to exposures in the resources sector.

While Australia’s share market remains in the midst of a bear market, which began in February this year, we continue to find investment opportunities. We believe we are nearing the end of the current bear market and, given the market historically rebounds sharply after reaching its low point, we anticipate opportunities will present themselves. Our above-average cash weighting positions us well to capitalise on prevailing market conditions.

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WAM Active Limited

ASX Code	WAA
Listed	Jan 2008
Gross assets	$37.1m
Market cap	$37.5m
Share price	$1.075
NTA before tax	$1.04
Shares on issue	34,909,728
Fully franked annualised interim dividend (FY2016)	5.0c
Dividendyield	4.7%

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

Matthew Haupt Portfolio Manager

Martin Hickson Senior Equity Analyst/Dealer

Tobias Yao Senior Equity Analyst

James McNamara Head of Corporate Affairs

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AS AT 31 MARCH 2016

Investment Update & Net Tangible Assets Report

Diversified portfolio

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Diversified portfolio
February 2016 Investment Type $m %	March 2016
	$m %
Listed Equities 21.3 59.5	27.7 73.4
Fixed Interest & Cash 14.5 40.5	10.0 26.6
Long Portfolio 35.8 100.0
	37.7 100.0
Short Portfolio (0.0) (0.0)
	(0.6) (1.7)
Gross Assets $35.8m
	$37.1m
Total shares on issue 34,909,728
	34,909,728

Top holdings

Top	holdings
		Market	Market Value
Code	Company	Value	as % Gross
		$	Assets
HHV	Hunter Hall Global Value Limited	2,588,450	7.0%
CYA	Century Australia Investments Limited	1,440,407	3.9%
SOL	Washington H Soul Pattinson and Company Limited	1,199,060	3.2%
PBG	Pacific Brands Limited	1,153,300	3.1%
AOG	Aveo Group	1,145,258	3.1%
QAN MMS GJT	Qantas Airways Limited McMillan Shakespeare Limited Galileo Japan Trust	934,562 933,603 917,576	2.5% 2.5% 2.5%
APN	APN News & Media Limited	914,401	2.5%
AGF	AMP Capital China Growth Fund	882,580	2.4%
MVP	Medical Developments International Limited	825,258	2.2%
TWE	TreasuryWine Estates Limited	817,192	2.2%
PMV	Premier Investments Limited	789,656	2.1%
DOW	Downer EDI Limited	770,223	2.1%
AIO	Asciano Limited	759,109	2.0%
MTS	Metcash Limited	749,595	2.0%
MQA MYR	Macquarie Atlas Roads Group Myer Holdings Limited	736,714 719,403	2.0% 1.9%
TGG	Templeton Global Growth Fund Limited	672,087	1.8%
BKW	Brickworks Limited	643,706	1.7%

Sector allocation

26.6% 29.2% -1.7% 1.6% 1.8% 2.5% 2.7% 14.8% 3.2% 5.3% 12.3% Financials 29.2% Consumer Discretionary 14.8% Industrials 12.3% Consumer Staples 5.3% Energy 3.2% Health Care 2.7% Materials 2.5% Information Technology 1.8% Telecommunication Services 1.6% Short Stock -1.7% Cash and Fixed Interest 26.6%

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

Dividends

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On 24 February 2016, the Company announced a fully franked interim dividend of 2.5 cents per share, to be paid on 29 April 2016. 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
Annualised interim dividend
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The dividend reinvestment plan (DRP) will operate at a 2.5% discount for the interim dividend. To participate in the DRP, shareholders should send their DRP Election Form to the Company’s share registrar (Boardroom) no later than 18 April 2016.

Key dividend dates

Ex date: 13 April 2016 Record date: 14 April 2016 Last election date for DRP: 18 April 2016 Payment date: 29 April 2016

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