WAM CAPITAL LIMITED — Net Asset Value 2013

Dec 11, 2013

Investment Update & Net Tangible Assets Report

AS AT 30 NOVEMBER 2013

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Performance

Performance
							Since
Performance at		Fin		3 Yrs	5 Yrs	10 Yrs	Inception %pa
30 November 2013	1 Mth 6 Mths	YTD	1 Yr	%pa	%pa	%pa	(Aug-99)
WAM Investment Portfolio*	-1.4% 14.2%	14.7%	28.1%	15.4%	21.8%	14.2%	18.5%
S&P/ASX All Ordinaries Accumulation Index Outperformance	-1.4% 10.5% +0.0% +3.7%	13.5% +1.2%	22.6% +5.5%	9.0% +6.4%	12.5% +9.3%	9.7% +4.5%	8.5% +10.0%

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

Net Tangible Assets (NTA) figures

NTA before tax	180.17c
NTA after tax and before tax on unrealised gains	182.36c*
NTA after tax	176.57c*

*Includes 3.3 cents of tax assets resulting from the merger with Premium Investors.

Market overview

After a strong run in recent months, the markets drifted lower in November with the S&P/ASX All Ordinaries Accumulation Index (‘Index’) ending the month down 1.4%. The Annual General Meeting (‘AGM’) season was mixed with a number of companies providing profit downgrades indicating business conditions are not materially improving. Globally, equity markets hit or approached record highs stimulated by the continued supply of ‘easy money’ coupled with low interest rates.

In Australia and overseas, the Initial Public Offering (‘IPO’) market remained very strong throughout November with the highly successful float of Twitter in the United States and Freelancer (FLN) domestically. Into 2014, we expect the surge in company floats will be followed by an increase in Merger and Acquisition (‘M&A’) activity.

The Index is now up 18.6% for the calendar year to date and up 13.5% for the financial year to date. Following exceptionally strong performance recently, our medium term outlook for the Australian equities market is subdued. Price to earnings ratios have expanded in anticipation of profit growth although there have been few signs of an improvement in earnings despite a significant amount of new equity being issued.

WAM Capital Limited

ASX Code	WAM
Listed	Aug 1999
Gross assets	$612.3m
Market cap	$621.3m
Share price	$1.85
NTA before tax	$1.80
Shares on issue Fully franked dividends (FY2013)	335,818,987 12.0c
Dividend yield	6.5%

Investment objectives

• Deliver investors a rising stream of fully franked dividends

• Provide capital growth

• Preserve capital

Company overview

WAM Capital Limited (ASX: WAM), one of Australia’s leading Listed Investment Companies, is managed by Wilson Asset Management. Listed in August 1999, WAM provides investors with exposure to an actively managed diversified portfolio of undervalued growth companies, which are generally small-to-medium sized industrial companies listed on the Australian Securities Exchange. WAM also provides relative value arbitrages and market mispricing opportunities.

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 Equity Analyst

Mark Tobin Equity Analyst

Meredith Hemsley Corporate Affairs

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Investment Update & Net Tangible Assets Report

AS AT 30 NOVEMBER 2013

Diversified portfolio

Diversified portfolio
October 2013 Investment Type $m %	November 2013
	$m %
Listed Equities 452.3 72.7	433.2 70.4
Fixed Interest & Cash 169.9 27.3	182.3 29.6
Long Portfolio 622.2 100.0%
	615.5 100.0%
Short Portfolio (0.0) (0.0)
	(3.2) (0.5)
Gross Assets $622.2m
	$612.3m
Total shares on issue 335,818,987
	335,818,987

~~*~~ This is after the payment of the fully franked final dividend during the month.

Top holdings

Top holdings
Code Company	Market Value as % Gross Assets
FKP FKP Property Group	3.5%
GNC Graincorp Limited	3.0%
SGH Slater & Gordon Limited	2.0%
CYA Century Australia Investments Limited	2.0%
WIC Westoz Investment Company Limited	1.7%
NEA Nearmap Limited	1.6%
MQG Macquarie Group Limited	1.6%
AHE Automotive Holdings Group Limited	1.5%
HIL Hills Holdings Limited	1.4%
IPE ING Private Equity Access Limited	1.4%
ELI Emerging Leaders Investments Limited	1.3%
VOC Vocus Communications Limited	1.3%
TSE Transfield Services Limited	1.3%
SFW SFG Australia Limited	1.3%
BKW Brickworks Limited	1.2%
RHG RHG Limited	1.2%
NXT NEXTDC Limited	1.2%
CSR CSR Limited	1.2%
GWA GWA Group Limited	1.1%
SGN STW Communications Group Limited	1.1%

Sector allocation

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22.7%
29.6%
-0.5%
0.2% 13.4%
1.3%
1.3%
3.2%
3.7%
12.8%
5.0%
6.8%
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Financials 22.7% Industrials 13.4% Consumer Discretionary 12.8% Information Technology 6.8% Consumer Staples 5.0% Telecommunication Services 3.7% Materials 3.2% Energy 1.3% Health Care 1.3% Utilities 0.2% Short stock -0.5% Cash and Fixed Interest 29.6%

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AS AT 30 NOVEMBER 2013

Investment Update & Net Tangible Assets Report

Dividend growth

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The Board is committed to paying an increasing stream of fully franked dividends to shareholders, provided the Company has sufficient profit reserves and franking credits and it is within prudent business practices. Dividends are paid on a six-monthly basis and the dividend reinvestment plan is available to shareholders for both the interim and final dividend.

WAM Capital dividends since inception

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Cents per share
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
Ordinary fully franked dividend Special fully franked dividend Equal access share buy-back
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On 18 October 2013, the Company paid a fully franked final dividend of 6.0 cents per share, an increase of 9.1% on the previous corresponding period. The final dividend brings the total dividend for FY2013 to 12.0 cents per share and represents a fully franked annual dividend yield of 6.6%, based on the last closing price.

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