WAM RESEARCH LIMITED — Net Asset Value 2015

Sep 13, 2015

Investment Update & Net Tangible Assets Report AS AT 31 AUGUST 2015

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Performance

							Since change in
Performance at 31 August 2015	1 Mth	Fin YTD	6 Mths	1 Yr	3 Yrs %pa	5 Yrs %pa	investment strategy (Jul-10) %pa
WAX Investment Portfolio*	0.0%	4.5%	7.1%	19.1%	23.7%	19.0%	19.2%
S&P/ASX All Ordinaries Accumulation Index Outperformance	-7.3% +7.3%	-3.4% +7.9%	-9.4% +16.5%	-3.0% +22.1%	11.0% +12.7%	7.9% +11.1%	8.3% 10.9%

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

Net Tangible Assets (NTA) figures

Net Tangible Assets (NTA) figures
NTA before tax 115.04c
NTA after tax and before tax on unrealised gains 115.36c*
NTA after tax 115.19c**

These figures are after the payment of $2.4m (1.4 cents per share) in tax during the month. ***Includes tax assets of 0.32 cents per share Includes the net effect of 0.32 cents of tax assets and 0.17 cents of tax liabilities per share.

Market overview

The S&P/ASX All Ordinaries Accumulation Index fell 7.3% in August, making it the worst performing month since the start of the global financial crisis. Australia followed the global sell off as China’s economic growth weakened and commodity prices continued to fall.

August also saw a poor 2015 financial year reporting season underscored by downbeat company outlook statements and short-term volatility around result announcements.

WAM Research Limited

WAM Research Limited
ASX Code	WAX
Listed	Aug 2003
Gross assets	$195.6m
Market cap	$206.6m
Share price	$1.25
NTA before tax	$1.15
Shares on issue	165,303,976
Fully franked dividends (FY2015)	8.0c
Dividendyield	6.4%

Investment objectives

• Provide a rising stream of fully franked dividends

• Achieve a high real rate of return, comprising both income and capital growth within risk parameters acceptable to the Directors

Company overview

WAM Research Limited (ASX: WAX) is a Listed Investment Company managed by Wilson Asset Management Group. Listed in August 2003, WAM Research provides investors with exposure to a diversified portfolio of undervalued growth companies, which are generally smallto-medium sized industrial companies listed on the Australian Securities Exchange.

Investment & Management Team

Despite the challenging conditions, we are well placed to act on opportunities in the market as they arise.

Final dividend key dates

The Company announced a fully franked final dividend of 4.0 cents per share on 24 August 2015. The key dates are:

Ex date: 12 October 2015 Record date: 14 October 2015 Last election date for DRP: 15 October 2015 Payment date: 23 October 2015

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 AUGUST 2015

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Diversified portfolio

Diversified portfolio
July 2015 Investment Type $m %	August 2015
	$m %
Listed Equities 114.5 56.2	$125.0 63.9
Fixed Interest & Cash 89.1 43.8
	$70.6 36.1
Gross Assets $203.6m 100.0%
	$195.6m* 100.0%
Total shares on issue 165,303,976	165,303,976

~~*~~ This figure is after the payment of $1.4m (1.4 cents per share) in tax during the month.

Top holdings

Code	Company	Market Value $	Market Value as % Gross Assets
ASB	Austal Limited	8,305,133	4.3%
ECX	Eclipx Group Limited	8,075,737	4.1%
IPH	IPH Limited	7,286,136	3.7%
ENE	Energy Developments Limited	6,569,096	3.4%
SIQ	Smartgroup Corporation Limited	6,497,411	3.3%
CSV	CSG Limited	5,833,094	3.0%
MTR	Mantra Group Limited	5,361,342	2.7%
TPM RFG	TPG Telecom Limited Retail Food Group Limited	5,202,079 5,040,495	2.7% 2.6%
AHD	Amalgamated Holdings Limited	4,755,180	2.4%
ISU	iSelect Limited	4,509,252	2.3%
RCG	RCG Corp Limited	4,356,139	2.2%
VOC	Vocus Communications Limited	4,133,182	2.1%
GUD CCP	GUD Holdings Limited Credit Corp Group Limited	4,030,866 3,825,259	2.1% 2.0%
AHG	Automotive Group Holdings Limited	3,806,842	2.0%
CKF	Collins Foods Limited	3,657,535	1.9%
TRS	The Reject Shop Limited	2,887,110	1.5%
SDA	SpeedCast International Limited	2,776,824	1.4%
HSN	Hansen Technologies Limited	2,324,011	1.2%

Sector allocation

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22.3%
36.1%
16.2%
0.2%
0.9%
3.3%
7.5%
6.4%
7.1%
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Consumer Discretionary: 22.3% Industrials: 16.2% Financials: 7.5% Information Technology: 7.1% Telecommunication Services: 6.4% Utilities: 3.3% Consumer Staples: 0.9% Health Care: 0.2% Cash and Fixed Interest: 36.1%

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Investment Update & Net Tangible Assets Report AS AT 31 AUGUST 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 Research dividends since inception

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Cents per share
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Ordinary fully franked dividend Special fully franked dividend
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On 24 August 2015, the Company announced a fully franked final dividend of 4.0 cents per share. This brings the full year dividend to 8.0 cents per share, an increase of 6.7% on the previous corresponding period.

The dividend reinvestment plan (DRP) will operate at a 2.5% discount for the final dividend. To participate in the DRP, shareholders should send their DRP Election Form to the Company’s share registrar (Boardroom) no later than 15 October 2015.

Key dividend dates

Ex date: 12 October 2015 Record date: 14 October 2015 Last election date for DRP: 15 October 2015 Payment date: 23 October 2015

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