WAM RESEARCH LIMITED — Net Asset Value 2009

Jan 13, 2009

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WILSON INVESTMENT FUND LTD (WIL) – INVESTMENT UPDATE & NTA DECEMBER 2008

The NTA before tax as at 31 December 2008 was 84.91 cents per share. The NTA after tax on realised gains and before tax on unrealised gains as at 31 December 2008 was 84.91 cents per share.

WIL is a long-term investor and does not intend disposing of its total portfolio. If estimated tax on unrealised portfolio gains were to be deducted, the above figure would be 84.91 cents per share.

NTA before tax payable and after tax assets	84.91c*
NTA after tax and before tax on unrealised gains	84.91c*
NTA after tax (including unrealised gains tax)	84.91c*

• The above figures include tax assets of 7.5 cents per share and after the payment of the final 2.0 cents a share fully franked LIC capital gain dividend on the 24 October 2008.

MARKET OUTLOOK

The Australian share market stabilised in December with the All Ordinaries Accumulation Index falling only 0.08 per cent, the best effort since August and a significant improvement on the previous three months. December also marked a major decline in volatility that peaked in October and November with concerns about the viability of the world and Australian banking systems causing significant stress for investors. This fear seems to be abating as we head into 2009.

Does this change in massive volatility mean the market has reached a bottom? We believe the market’s remarkable decline experienced in 2008 will not repeat in 2009 and a more orderly market will resume. However, there is no magic bullet and a return to a bull market may be 6 or even 12 months away still. In the mean time the market will track sideways waiting to see how far company earnings decline through the course of 2009. We anticipate earnings across the board will fall more than 20 per cent and possibly 30 per cent which was the case in the recession of the early 1990s. The first taste of this is only a few weeks away with half yearly earnings due to be reported by Australian companies during February.

We are bullish in the medium term as opportunities of incredibly cheap companies start to appear before us. We will progressively invest our cash during that period, but cautious not to be too hasty given the unusual circumstances of the economic decline on this occasion. We are buoyed by the massive drop in interest rates and expect the lower cost of funding to have some real impact late in 2009 and throughout 2010 before rates have to be raised to more normal levels. We also anticipate the US economy finding a bottom during 2009 and a recovery during 2010.

DIVIDENDS

The final dividend declared for the year to 30 June 2008 was 2.0 cents a share fully franked, paid on 24 October 2008. The final dividend carried with it an attributable LIC capital gain of 2.0 cents per share which will enable some shareholders to claim a tax deduction. The full year to 30 June 2008 ordinary dividends paid were 5.0 cents per share.

PORTFOLIO STRUCTURE

	As at 30 November 2008	As at 30 November 2008		As at 31 December 2008	As at 31 December 2008
Investment Type	$m	%		**$m **	%
Listed Equities	67.62	74%		74.88	79%
Listed Hybrids	3.80	4%		2.10	2%
Fixed Interest and Cash	19.72	22%		18.54	19%
Total Assets	91.14	100%		95.52	100%
	No.			No.
Total no. of ord shares on issue	122,774,083			122,774,083

PORTFOLIO STRUCTURE (continued)

As at 31 December 2008 the listed equities and hybrids were as follows:

	Listed Hybrids Seven Non-red Prefs (SEVPC) Willmott Forests Prefs (WFLPA) Capital Goods CSR Ltd (CSR) Reece Australia Ltd Commercial Services & Supplies Credit Corp Group Ltd (CCP) McMillan Shakespeare Ltd (MMS) SAI Global Ltd (SAI) Consumer Services Tabcorp Holdings Ltd (TAH) Tattersalls Ltd (TTS) Media Photon Group Ltd (PGA) Prime Television Ltd (PRT) WA Newspapers Hld Ltd (WAN) Retailing AP Eagers Ltd (APE) ARB Corporation Ltd (ARP) Food & Staples Retailing Metcash Ltd (MTS) Insurance Calliden Group Ltd (CIX) Tower Australia Group Ltd (TAL) Tower Ltd (TWR) Software & Services IRESS Market Technology Ltd (IRE)	Qty 15,000 14,000 625,000 45,711 959,082 750,000 675,000 200,000 611,350 1,033,000 381,291 124,000 348,997 580,864 950,000 6,000,000 1,689,950 568,649 144,508		Market Value $ 1,132,500 966,000 2,098,500 1,100,000 754,231 1,854,231 450,768 1,402,500 1,586,250 3,439,518 1,398,000 1,705,666 3,103,666 1,342,900 510,929 688,200 2,542,029 2,128,881 1,655,462 3,784,343 4,161,000 4,161,000 2,400,000 4,207,975 671,005 7,278,980 744,216 744,216			Food Beverage & Tobacco Cockatoo Ridge Wines Ltd (CKR) Graincorp Ltd (GNC) Select Harvest Ltd (SHV) Banks ANZ Ltd (ANZ) Bank of Queensland Ltd (BOQ) Bendigo & Adelaide Bank Ltd (BEN) Commonwealth Bank of Aust. (CBA) Mortgage Choice Ltd (MOC) National Aust Bank Ltd (NAB) Rock Building Society Ltd (ROK) Westpac Banking Corp (WBC) Wide Bay Australia Ltd (WBB) Health Care Equip & Services Aevum Ltd (AVE) Primary Health Care Ltd (PRY) Pro Medicus Ltd (PME) Sigma Pharmaceuticals Ltd (SIP) Diversified Financials ASX Ltd (ASX) BT Invt M’ment Ltd (BTT) Clime Invt M’ment Ltd (CIW) CVC Ltd (CVC) Equity Trustees Ltd (EQT) IOOF Holdings Ltd (IFL) Mariner Financial Ltd (MFI) NSX Ltd (NSX) Perpetual Ltd (PPT) Rattoon Holdings Ltd (RTN.NSX) Treasury Group Ltd (TRG) Real Estate Challenger Wine Trust (CWT) TOTAL PORTFOLIO VALUE	Qty 8,108,328 209,714 343,241 91,000 79,013 495,763 76,900 519,715 220,000 57,285 212,500 413,573 1,326,839 780,497 1,075,000 884,120 302,000 1,041 3,836,143 750,000 71,000 327,000 2,560,000 1,085,000 40,000 2,508,477 98,766 2,453,250		Market Value $ 243,249 1,216,341 1,002,263 2,461,853 1,391,390 785,389 5,453,393 2,222,410 394,983 4,591,400 148,941 3,606,125 2,936,368 21,530,399 1,340,107 3,824,435 1,064,250 954,849 7,183,641 10,056,600 1,936 882,312 487,500 947,850 1,242,600 33,280 173,600 1,483,600 301,017 449,385 16,059,680 735,975 735,975 $76,978,042

PORTFOLIO STRUCTURE (continued)

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For further information please contact Mr Geoff Wilson or Mr Matthew Kidman on (02) 9247 6755

Level 11, 139 Macquarie Street, Sydney NSW 2000 | GPO Box 4658 Sydney NSW 2001 | ABN 15 100 504 541 Phone 02 9247 6755 | Fax 02 9247 6855 | info@wami.com.au | www.wilsonassetmanagement.com.au