WAM CAPITAL LIMITED — Net Asset Value 2014

May 11, 2014

Investment Update & Net Tangible Assets Report

AS AT 30 APRIL 2014

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Performance

Performance
								Since
Performance at			Fin		3 Yrs	5 Yrs	10 Yrs	Inception %pa
30 April 2014	1 Mth	6 Mths	YTD	1 Yr	%pa	%pa	%pa	(Aug-99)
WAM Investment Portfolio*	-0.8%	1.5%	18.2%	14.4%	13.3%	20.0%	13.7%	18.1%
S&P/ASX All Ordinaries Accumulation Index Outperformance	1.3% -2.1%	3.0% -1.5%	18.6% -0.4%	10.4% +4.0%	8.4% +4.9%	12.5% +7.5%	9.4% +4.3%	8.6% +9.5%

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

WAM Capital Limited

WAM Capital Limited
ASX Code	WAM
Listed	Aug 1999
Gross assets	$608.9m
Market cap	$664.2m
Share price	$1.95
NTA before tax	$1.79
Shares on issue Fully franked annualised interim dividend (FY2014)	340,603,969 13.0c
Dividendyield	6.7%

Net Tangible Assets (NTA) figures

Investment objectives

NTA before tax
	178.23c*
NTA after tax and before tax on unrealised gains	178.81c**
NTA after tax
	174.20c**

***This figure is after the payment of 0.5 cents in tax during the month. Includes 2.8 cents of tax assets resulting from the merger with Premium Investors.

Market overview

The S&P/ASX All Ordinaries Accumulation Index climbed 1.3% in April driven higher by the four major banks as they approached their interim reporting season. During the month, the S&P/ASX All Ordinaries Index reached a six year high with the Index now up 35.6% from its lows of June 2012 and up 14.6% for the financial year to date.

Markets overseas also rose in April. American equities continued to move higher hitting all-time highs in spite of macroeconomic data and the Federal Reserve continuing to taper its Quantitative Easing (‘QE’) program. We believe the technology sector is losing momentum with recent IPOs in the sector performing poorly and high profile stocks, such as Twitter, experiencing volatility. As we foreshadowed following our trip to China earlier this year, the world’s second largest economy is adjusting to a lower growth environment.

In the short term, we maintain a cautious outlook for Australian equities with the Price to Earnings (P/E) ratios of stocks across various industries trading significantly higher than their historical averages. We predict the market will finish the calendar year flat. Subject to growth in economic activity driven by low interest rates, our view of the share market over the medium and longer term is more optimistic. The investment portfolio currently has a cash weighting of 41.2% ensuring the Company is well positioned to seize on opportunities in the market when they arise.

• 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 exposure to 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 APRIL 2014

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Diversified portfolio

Diversified portfolio
March 2014 Investment Type $m %	April 2014
	$m %
Listed Equities 395.8 62.7	364.9 58.8
Fixed Interest & Cash 235.3 37.3
	255.9 41.2
Long Portfolio 631.1 100.0%	620.8 100.0%
Short Portfolio (17.3) (2.8)	(11.9) (2.0)
Gross Assets $613.8m	$608.9m*
Total shares on issue 338,667,164
	340,603,969

~~*~~ This is after the payment of 0.5 cents in tax during the month. during the month.

Top holdings

Code	Company	Market Value as % Gross Assets
CBAPA	CBA Perpetual Exc Resale Listed Sec - PERLS IV	3.6%
CYA	Century Australia Investments Limited	2.3%
DNA	Donaco International Limited	1.9%
ANZPB	ANZ Convertible Preference Share - CPS2	1.7%
SGH	Slater & Gordon Limited	1.6%
WIC	Westoz Investment Company Limited	1.6%
AAD	Ardent Leisure Group	1.6%
DLX	DuluxGroup Limited	1.6%
HIL IPE AHE	Hills Limited IPE Limited Automotive Holdings Group Limited	1.5% 1.5% 1.4%
CSR MQA	CSR Limited Macquarie Atlas Roads Group	1.3% 1.2%
DJS TNE	David Jones Limited Technology One Limited	1.2% 1.2%
FXJ	Fairfax Media Limited	1.1%
BHP	BHP Billiton Limited	1.1%
FBU NEA	Fletcher Building Limited Nearmap Limited	1.1% 1.1%
FLT	Flight Centre Travel Group Limited	1.0%

Sector allocation

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20.0%
41.2%
13.9%
-2.0%
0.1% 7.6%
1.0%
7.2%
1.5%
3.6%
1.9%
2.0%
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Financials: 20.0% Consumer Discretionary: 13.9% Industrials: 7.6% Materials: 7.2% Information Technology: 3.6% Telecommunication Services: 2.0% Consumer Staples: 1.9% Health Care: 1.5% Utilities: 1.0% Energy: 0.1% Short stock: -2.0% Cash and Fixed Interest: 41.2%

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AS AT 30 APRIL 2014

Investment Update & Net Tangible Assets Report

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Dividend growth

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
Annualised interim dividend
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On 31 March 2014, the Company paid a fully franked interim dividend of 6.5 cents per share. This was an increase of 8.3% on the previous corresponding period and represents an annualised fully franked dividend yield of 6.7%, based on the last closing price.

Upcoming Investor Roadshow dates

Adelaide 22 May 2014 Brisbane 23 May 2014 Melbourne 27 May 2014 Sydney 28 May 2014

Full details are provided on our website. We look forward to seeing you there.

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