WAM CAPITAL LIMITED — Net Asset Value 2015

May 12, 2015

Investment Update & Net Tangible Assets Report

AS AT 30 APRIL 2015

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Performance

Performance
Performance at			Fin		3 Yrs	5 Yrs	10 Yrs	Since Inception
30 April 2015	1 Mth	6 Mths	YTD	1 Yr	%pa	%pa	%pa	%pa(Aug-99)
WAM Investment Portfolio*	0.7%	9.6%	15.1%	16.1%	18.3%	15.2%	14.2%	18.0%
S&P/ASX All Ordinaries Accumulation Index	-1.5%	7.1%	11.1%	10.2%	13.7%	8.2%	8.4%	8.7%
Outperformance	+2.2%	+2.5%	+4.0%	+5.9%	+4.6%	+7.0%	+5.8%	+9.3%

• 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	$836.4m
Market cap	$875.0m
Share price	$1.94
NTA before tax	$1.83
Shares on issue	451,050,715
Fully franked annualised interim dividend (FY2015)	14.0c
Dividendyield	7.2%

Net Tangible Assets (NTA) figures

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

The following NTA figures areafterthe 7.0 cents per share interim dividend paid on 30 April 2015.	fully franked
NTA before tax
	183.46c
NTA after tax and before tax on unrealised gains	184.22c*
NTA after tax	179.80c*

~~*~~ Includes 1.5 cents of tax assets resulting from the merger with Premium Investors.

Market overview

The S&P/ASX All Ordinaries Accumulation Index closed down 1.5% in April. The banking sector weighed heavily on the market late in the month, as it reacted negatively to news of potential regulatory tightening. This led to one of the sharpest falls in a day this calendar year, wiping $20 billion off the banking sector’s market capitalisation. Unsurprisingly Westpac Banking Corporation (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank (ASX: NAB) were the biggest detractors from the index in the month.

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

US markets continued to rally with the S&P500 gaining 0.9% and the Nasdaq 0.8% higher at the end of the month. This came despite poor US economic data with employment, inflation and GDP data weaker than expected, leading investors to once again push out expectations of an interest rate rise from the US Federal Reserve. European equity markets experienced a positive month, with strong company earnings supporting the region. China’s markets surprised during the month, with the Shanghai composite posting a 18.5% gain despite slowing growth.

Our outlook for the remainder of the year is mixed as we believe valuations are full, notwithstanding the likelihood of further rate cuts. The market continues to experience increasing initial public offering activity and we are actively monitoring and participating in opportunities as they arise.

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 30 APRIL 2015

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Diversified portfolio

Diversified portfolio
March 2015 Investment Type $m %	April 2015
	$m %
Listed Equities 537.5 62.6	524.2 62.4
Fixed Interest & Cash 321.8 37.4
	315.3 37.6
Long Portfolio 859.3 100.0%	839.5 100.0%
Short Portfolio (3.1) (0.4)	(3.1) (0.4)
Gross Assets $856.2m	$836.4m*
Total shares on issue 447,215,071
	451,050,715

~~*~~ This is after payment of the 7.0 cent fully franked interim dividend during the month.

Top holdings

Top	holdings
Code	Company	Market Value $	Market Value as % Gross Assets
HHV	Hunter Hall Global Value Limited	28,194,782	3.4%
TOL	Toll Holdings Limited	16,972,748	2.0%
ASB	Austal Limited	16,032,411	1.9%
SGH	Slater & Gordon Limited	15,822,744	1.9%
TPM	TPG Telecom Limited	15,182,480	1.8%
CYA	Century Australia Investments Limited	14,579,533	1.7%
ECX	Eclipx Group Limited	14,114,543	1.7%
MYX EGP	Mayne Pharma Group Limited Echo Entertainment Group Limited	13,336,953 12,950,713	1.6% 1.5%
RFG BAP	Retail Food Group Limited Burson Group Limited	12,924,366 11,943,627	1.5% 1.4%
ENE ISU	Energy Developments Limited iSelect Limited	11,848,690 11,246,756	1.4% 1.3%
MTR	Mantra Group Limited	10,062,407	1.2%
CSV	CSG Limited	9,912,765	1.2%
CCP	Credit Corp Group Limited	9,683,656	1.2%
FXJ MMS	Fairfax Media Limited McMillan Shakespeare Limited	9,631,491 9,591,147	1.2% 1.1%
CSR	CSR Limited	9,360,330	1.1%
IPH	IPH Limited	9,341,192	1.1%

Sector allocation

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18.2%
37.6%
14.7%
-0.4%
1.1%
1.4%
2.3% 14.6%
3.3%
3.4%
3.4%
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Consumer Discretionary: 18.2% Industrials: 14.7% Financials: 14.6% Information Technology: 3.4% Health Care: 3.4% Telecommunication Services: 3.3% Consumer Staples: 2.3% Utilities: 1.4% Materials: 1.1% Short Stock: -0.4% Cash and Fixed Interest: 37.6%

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Investment Update & Net Tangible Assets Report

AS AT 30 APRIL 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
Annualised interim dividend
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On 30 April 2015, the Company paid a fully franked interim dividend of 7.0 cents per share, an increase of 7.7% on the previous corresponding period. The dividend reinvestment price was $1.9154 after the 2.5% discount.

Upcoming investor presentations

Date	City	Location	Time
Tuesday 19 May 2015	Sydney	Wesley Conference Centre Wesley Theatre 220 Pitt Street	9.30am – 11.20am
Wednesday 20 May2015	Adelaide	The Playford 120 North Terrace	9.30am – 11.20am
Friday 22 May 2015	Brisbane	Brisbane Convention & Exhibition Centre Cnr Merivale & Glenelg Streets South Bank	9.30am – 11.20am
Tuesday 26 May2015	Melbourne	Rydges Hotel 186 Exhibition St	9.30am – 11.20am
Thursday 28 May 2015	Canberra	Belconnen Premier Hotel 110 Benjamin Way Belconnen	9.30am – 11.20am
Thursday 4 June 2015	Perth	Rydges Hotel 815 Hay Street	9.30am – 11.20am

If you wish to attend one of our investor presentations, please RSVP by email to info@wamfunds.com.au or call Mary-Ann on (02) 9258 4998.

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