WAM CAPITAL LIMITED — Net Asset Value 2015

Nov 11, 2015

Investment Update & Net Tangible Assets Report

AS AT 31 OCTOBER 2015

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Performance

Performance
								Since
Performance at 31 October 2015	1 Mth	Fin YTD	6 Mths	1 Yr	3 Yrs %pa	5 Yrs %pa	10 Yrs %pa	Inception %pa(Aug-99)
WAM Investment Portfolio*	3.9%	9.4%	8.9%	19.4%	19.0%	15.4%	13.9%	18.0%
S&P/ASX All Ordinaries Accumulation Index	4.6%	-1.5%	-6.2%	0.4%	9.9%	6.8%	6.3%	8.0%
Outperformance	-0.7%	+10.9%	+15.1%	+19.0%	+9.1%	+8.6%	+7.6%	+10.0%

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

Net Tangible Assets (NTA) figures

The following NTA figures are after the 7.0 cents per share fully franked final dividend paid on 30 October 2015.

NTA before tax
	186.61c
NTA after tax and before tax on unrealised gains	187.41c*
NTA after tax
	181.11c*

~~*~~ Includes 1.4 cents of tax assets resulting from the merger with Premium Investors.

Market overview

The Australian equity market improved in October as it came close to recovering the 5.8% fall in the first quarter of the 2015-16 financial year. The S&P/ASX All Ordinaries Accumulation Index gained 4.6% for the month, the best monthly performance in over two years.

Economic data released included below consensus inflation figures leading to speculation of an interest rate cut by the Reserve Bank of Australia (RBA) on Melbourne Cup day, which did not eventuate. The decision by the major Australian banks to raise mortgage rates increases our view that the RBA may lower the cash rate in the coming months. With mortgage holders effectively receiving a rate rise, we will be monitoring closely the impact this may have on consumer sentiment and the broader economy.

Our discussions with various companies that we have visited recently have been consistent in their feedback with economic conditions remaining patchy. The mining sector remains very weak while select retail stocks continue to benefit from low interest rates. It appears this housing cycle has peaked and as such we have seen stocks in this sector underperform over the last six months. Recent falls in auction clearance rates in Sydney are a clear sign of this.

We believe that in this subdued economic environment investment opportunities will continue to present themselves. We remain well positioned with our high levels of cash to preserve capital and take opportunities as they arise.

WAM Capital Limited

WAM Capital Limited
ASX Code	WAM
Listed	Aug 1999
Gross assets	$869.6m
Market cap	$891.6m
Share price	$1.96
NTA before tax	$1.87
Shares on issue Fully franked dividends (FY2015)	454,905,718 14.0c
Dividendyield	7.1%

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 Capital 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 Capital 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 Senior Equity Analyst

Tobias Yao Equity Analyst

James McNamara Communications Manager

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Investment Update & Net Tangible Assets Report

AS AT 31 OCTOBER 2015

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Diversified portfolio

Diversified portfolio
September 2015 Investment Type $m %	October 2015
	$m %
Listed Equities 559.6 64.4	625.1 70.6
Fixed Interest & Cash 309.6 35.6	260.4 29.4
Long Portfolio 869.2 100.0	885.5 100.0
Short Portfolio (8.0) (0.9)	(15.9) (1.8)
Gross Assets $861.2m
	$869.6m*
Total shares on issue 451,050,715
	454,905,718**

~~*~~ This figure is after the 7.0 cents per share ($24.2m) fully franked final dividend paid during the month.

** During the month, 3.9m shares were issued from the Dividend Reinvestment Plan (DRP) for the final dividend.

Top holdings

Top	**holdings **
		Market Value	Market Value
Code	Company	$	as % Gross
			Assets
HHV ECX	Hunter Hall Global Value Limited Eclipx Group Limited	31,390,380 22,499,380	3.6% 2.6%
CYA	Century Australia Investments Limited	17,594,523	2.0%
ASB	Austal Limited	17,579,320	2.0%
SIQ	Smartgroup Corporation Limited	17,473,154	2.0%
NUF	Nufarm Limited	14,693,083	1.7%
IPH	IPH Limited	13,642,467	1.6%
AOG	Aveo Group	12,190,939	1.4%
AAD	Ardent Leisure Group	12,068,519	1.4%
CSV	CSG Limited	12,037,196	1.4%
MYR	Myer Holdings Limited	11,996,604	1.4%
ALL	Aristocrat Leisure Limited	10,726,295	1.2%
MTR RCG	Mantra Group Limited RCG Corp Limited	10,650,931 10,447,129	1.2% 1.2%
GTY	Gateway Lifestyle Group	10,300,205	1.2%
AHD	Amalgamated Holdings Limited	9,838,444	1.1%
OFX XRO	Ozforex Group Limited Xero Limited	9,557,091 9,277,800	1.1% 1.1%
AHG	Automotive Group Holdings Limited	9,262,144	1.1%
PMV	Premier Investments Limited	9,258,862	1.1%

Sector allocation

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22.9%
29.4%
-1.8%
0.7%
0.7%
22.5%
1.7%
2.8%
3.5%
5.5%
10.3%
Consumer Discretionary: 22.9%
Financials: 22.5%
Industrials: 10.3%
Information Technology: 5.5%
Consumer Staples: 3.5%
Health Care: 2.8%
Materials: 1.7%
Energy: 0.7%
Telecommunication Services: 0.7%
Short stock: -1.8%
Cash and Fixed Interest: 29.4%
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Investment Update & Net Tangible Assets Report

AS AT 31 OCTOBER 2015

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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. The Company’s ability to generate franking credits is dependent upon the receipt of franked dividends from investments and the payment of tax. Dividends are usually 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 30 October 2015, the Company paid a fully franked final dividend of 7.0 cents per share. This brings the full year fully franked dividend to 14.0 cents per share, an increase of 7.7% on the previous corresponding period.

The Dividend Reinvestment Plan (DRP) for the FY2015 final dividend was underwritten. The DRP price was $1.9186 per share and shares were allotted on 3 November 2015.

Upcoming investor presentations

Date	City	Location	Time
Thursday 19 November 2015	Perth	Parmelia Hilton 14 Mill Street	10:00am – 12:00pm
Tuesday 24 November 2015	Sydney	Wesley Centre Auditorium 220 Pitt Street	WAM AGM 10:30am – 11:00am Presentation 11:00am – 12:30pm
Wednesday 25 November 2015	Adelaide	The Playford 120 North Terrace	10:00am – 12:00pm
Thursday 26 November 2015	Melbourne	Rydges Melbourne 186 Exhibition Street	10:00am – 12:00pm
Friday 27 November 2015	Brisbane	Brisbane Convention & Exhibition Centre Cnr Merivale & Glenelg Street South Bank	10:00am – 12:00pm
Monday 30 November 2015	Canberra	Belconnen Premier Inn 110 Benjamin Way Belconnen	10:00am – 12:00pm

If you wish to attend one of our investor presentations, please RSVP by email to info@wamfunds.com.au or call our office on (02) 9247 6755.

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