WAM RESEARCH LIMITED — Net Asset Value 2015

May 7, 2015

AS AT 30 APRIL 2015

Investment Update & Net Tangible Assets Report

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Performance

Performance
						Since change in
Performance at 30 April 2015	1 Mth	6 Mths	Fin YTD	1 Yr	3 Yrs %pa	investment strategy (Jul-10) %pa
WAX Investment Portfolio*	0.9%	12.2%	23.2%	23.8%	23.9%	19.6%
S&P/ASX All Ordinaries Accumulation Index	-1.5%	7.1%	11.1%	10.2%	13.7%	10.8%
Outperformance	+2.4%	+5.1%	+12.1%	+13.6%	+10.2%	+8.8%

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

Net Tangible Assets (NTA) figures

The following NTA figures are before the payment of the 4.0 cents per share fully franked interim dividend which will be paid on 28 May 2015. The shares will trade ex dividend on 18 May 2015.

NTA before tax 119.77c
NTA after tax and before tax on unrealised gains 117.25c
NTA after tax 117.08c

• The above figures are after the payment of 0.22 cents in tax during the month.

^ The above figures were adjusted by 0.41 cents after the inclusion of unallocated options. # The above figures have not been adjusted for the remaining options on issue.

WAX Options

If you are a WAM Research optionholder and you exercise your options before 13 May 2015 , you will be entitled to receive the 4.0 cents per share fully franked interim dividend.

Should you have any further queries about exercising your options, please call Mary-Ann on (02) 9258 4998.

WAM Research Limited

WAM Research Limited
ASX Code	WAX
Listed	Aug 2003
Gross assets	$185.1m
Market cap	$182.4m
Share price	$1.21
NTA before tax	$1.20
Shares on issue Options on issue	150,772,215 58,498,623
Fully franked annualised interim dividend (FY2015)	8.0c
Dividendyield	6.6%

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.

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 Corporate (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), Australian and New Zealand Bank (ASX: ANZ) and National Australia Bank (ASX: NAB) were the biggest detractors from the index in the month.

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 anticipations of interest rate rises 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.

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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AS AT 30 APRIL 2015

Investment Update & Net Tangible Assets Report

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Diversified portfolio

Diversified portfolio
March 2015 Investment Type $m %	April 2015
	$m %
Listed Equities 104.3 58.6	103.9 56.1
Fixed Interest & Cash 73.7 41.4
	81.2 43.9
Gross Assets $178.0m 100.0%
	$185.1m* 100.0%
Total shares on issue 145,185,417	150,772,215
Total options on issue 64,085,421	58,498,623

~~*~~ This is after payment of $326k (0.22 cents) in tax paid during the month.

Top holdings

Code	Company	Market Value $	Market Value as % Gross Assets
TPM	TPG Telecom Limited	7,300,645	3.9%
ASB	Austal Limited	6,657,947	3.6%
SGH	Slater & Gordon Limited	6,260,572	3.4%
RFG	Retail Food Group Limited	5,300,584	2.9%
ENE	Energy Developments Limited	4,859,367	2.6%
MTR	Mantra Group Limited	4,838,609	2.6%
ISU	iSelect Limited	4,739,427	2.6%
CSV AHD ECX	CSG Limited Amalgamated Holdings Limited Eclipx Group Limited	4,505,389 4,364,663 4,199,349	2.4% 2.4% 2.3%
IPH	IPH Limited	4,069,716	2.2%
CCP	Credit Corp Group Limited	3,971,942	2.1%
SIQ	Smartgroup Corporation Limited	3,966,233	2.1%
CTD	Corporate Travel Management Limited	3,897,178	2.1%
ISD CIW	iSentia Group Limited Clime Investment Management Limited	2,282,594 2,148,124	1.2% 1.2%
APE	AP Eagers Limited	2,145,665	1.2%
QUB	Qube Holdings Limited	2,092,500	1.1%
TGA	Thorn Group Limited	1,961,195	1.1%
CKF	Collins Foods Limited	1,869,047	1.0%

Sector allocation

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21.1%
43.9%
14.0%
0.8% 5.8%
1.3%
5.6%
2.6% 4.9%
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Consumer Discretionary: 21.1% Industrials: 14.0% Financials: 5.8% Information Technology: 5.6% Telecommunication Services: 4.9% Utilities: 2.6% Health Care: 1.3% Consumer Staples: 0.8% Cash and Fixed Interest: 43.9%

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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 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
Annualised interim dividend
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On 27 January 2015, the Company announced a fully franked interim dividend of 4.0 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 interim dividend. To participate in the DRP, shareholders should send their DRP Election Form to the Company’s share registrar (Boardroom) no later than 21 May 2015. Option holders are required to exercise their options by 13 May 2015 to be eligible for the 4.0 cent fully franked interim dividend.

Key dividend dates

Key dividend dates
Ex date:	18 May 2015
Record date:	20 May 2015
Last election date for DRP:	21 May 2015
Payment date:	28 May 2015
Last day for Option holders to
exercise options in order to be eligible for the dividend: 13 May 2015

Bonus Option Issue

On 28 October 2013, the Company announced a one for two bonus option issue (‘Bonus Option Issue’) to all WAM Research shareholders to acquire ordinary shares in the Company. The options have an exercise price of $1.20 per share and can be exercised at any time on or before 17 June 2015.

As at 30 April 2015, 5,586,798 options had been exercised for a total consideration of $6,704,158, with the remaining balance of outstanding options being 58,498,623.

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Investment Update & Net Tangible Assets Report

AS AT 30 APRIL 2015

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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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