WAM Active Ltd. · ASX:WAA
WAM Active — Investor Presentation (November 2009)
32 slides from WAM Active's investor presentation, Nov 18, 2009
Slide 1: WAM Active Limited Presentation November/December 2009
WAM ACTIVE LIMITED (WAA) For personal use only A.B.N. 49 126 420 719 PRESENTATION NOVEMBER/DECEMBER 2009
Slide 2: Summary
For personal use only Summary WAM Active trades in Australian stocks. The objective is to take advantage of opportunities such as capital raisings, underwritings, takeovers arbitrages and stock sell downs. WAM Active aims to pay an increasing stream of fully franked dividends and protect shareholder
Slide 3: Management's Competitive Advantage
Management’s Competitive Advantage For personal use only The Wilson Asset Management team offers investors the following advantages: 1. A flat structure that delivers quick decision making; 2. A nimble investment process due to the relatively small funds under management; 3. Closed end funds avoidin
Slide 4: Performance
For personal use only Performance % 50 40 30 20 10 0 -10 -20 -30 -40 -50 -60 WAM Active Limited - Gross Portfolio before all expenses, fees, taxes and dividends All Ordinaries Accumulation Index 4
Slide 5: Performance (cont.)
For personal use only Performance (cont.) Since Inception to 31 October 2009 WAM Active NTA Performance +31.1% All Ordinaries Accumulation Index -21.3% 5
Slide 6: Dividends
For personal use only DIVIDENDS 6
Slide 7: Dividends
For personal use only Dividends • Maiden fully franked dividend of 2.0 cents per share paid on 20 July 2009. • Intension is to pay an increasing fully franked dividend stream over time. • Dividends are only payable from retained earnings or current year’s profits of the company. • Traders profit is
Slide 8: NTA & Share Price
For personal use only PRICE NTA & SHARE 8
Slide 9: NTA and Share Price
For personal use only NTA and Share Price As at 31 October 2009 Cents Discount Pre-tax NTA 125.5 20.3% After-tax NTA 118.1 15.3% Share Price* 100.0 * As at close of trading 17 November 2009 9
Slide 10: NTA & Share Price History
For personal use only NTA & Share Price History 1.25 1.15 1.05 0.95 0.85 0.75 0.65 NTA After-tax Share price 10
Slide 11: Stock Selection
For personal use only STOCK SELECTION 11
Slide 12: Portfolio Structure
For personal use only Portfolio Structure As at 31 October 2009 Investment Type $m % Listed Equities 14.42 69 Term Deposits and Cash 6.40 31 Total Long Portfolio 20.82 100 Total Short Portfolio (0.01) No. Ordinary Shares on issue 15,489,219 12
Slide 13: Top Trading Stocks
TOP 10 TRADING STOCKS as at 31 October 2009 For personal use only Market Value % of Long Code Company $ Portfolio MCP McPherson’s Ltd $931,057 6.5% TLS Telstra Corporation Ltd * $632,493 4.4% SKE Skilled Group Ltd $458,998 3.2% FXL Flexigroup Ltd $456,616 3.2% HBSHA Heritage Building Society Ltd Not
Slide 14: Best Performing Stocks
Best Performing Stocks 16 months to 31 October 2009 For personal use only Code Company Unrealised/Realised Gains MCP McPherson's Ltd $771,292 RHG RHG Ltd $452,481 PBG Pacific Brands Ltd $428,886 FXL FlexiGroup Ltd $364,316 OKN Oakton Ltd $328,983 14
Slide 15: Worst Performing Stocks
Worst Performing Stocks 16 months to 31 October 2009 For personal use only Unrealised/Realised Code Company Gains MQG Macquarie Group Ltd -$198,899 ALZ Australand Property Group -$153,215 HGG Henderson Group PLC. -$112,140 ASX ASX Ltd -$110,835 KBC Keybridge Capital Ltd -$99,682 15
Slide 16: Virgin Blue (VBA)
For personal use only Virgin Blue (VBA) Virgin Blue • Company visit – market capitalisation $2.40 $2.00 $1.60 • Capital raising @ $0.20 Price $1.20 $0.80 • Fixed cost base $0.40 $- 2004 2005 2006 2007 2008 2009 • Leverage to the economy VBA share price 16
Slide 17: Clive Peeters (CPR)
For personal use only Clive Peeters (CPR) Clive Peeters Limited • Legacy issues $3.50 $3.00 • Adjusted NTA = $0.27 $2.50 Price $2.00 $1.50 • Cost reductions $1.00 $0.50 • Retailer in turnaround mode $- 2005 2006 2007 2008 2009 CPR share price 17
Slide 18: Markets
For personal use only MARKETS 18
Slide 19: Dow Jones Industrial Index – Monthly
Dow Jones Industrial Index – Monthly For personal use only 19
Slide 20: All Ordinaries Index – Monthly: 1968-1982
All Ordinaries Index – Monthly: 1968-1982 (Logarithmic) For personal use only “1970’s Bear Market” - Australia 20
Slide 21: Dow Jones Industrial Index – Monthly: 1968-1982
Dow Jones Industrial Index – Monthly: 1968-1982 (Logarithmic) For personal use only “1970’s Bear Market” - US 21
Slide 22: All Ordinaries Index – Monthly: 1982-1994
All Ordinaries Index – Monthly: 1982-1994 (Logarithmic) For personal use only “1987 Crash & Bear Market” - Australia 22
Slide 23: All Ordinaries Index – Monthly (Logarithmic)
All Ordinaries Index – Monthly (Logarithmic) For personal use only 23
Slide 24: Dow Jones Industrial Index – Monthly (Logarithmic)
Dow Jones Industrial Index – Monthly (Logarithmic) For personal use only 24
Slide 25: Australia All Ordinaries Index: years
Australia All Ordinaries Index: 10 years For personal use only 25
Slide 26: US S&P Index years
US S&P 500 Index 10 years For personal use only 26
Slide 27: ASX300 Prospective PER
ASX300 Prospective PER Rolling 12 Months Forward For personal use only 22 20 18 +1 Std Dev 16 Average: 15.1 14 -1 Std Dev 12 10 8 Aug-90 Aug-91 Aug-92 Aug-93 Aug-94 Aug-95 Aug-96 Aug-97 Aug-98 Aug-99 Aug-00 Aug-01 Aug-02 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Source: GSJBW Research estimat
Slide 28: ASX200 Industrials Prospective PER
ASX200 Industrials Prospective PER For personal use only Rolling 12 Months Forward 22 20 18 16 Average: 14.5 14 Average: 13.9 12 10 8 Aug-89Aug-90Aug-91Aug-92Aug-93Aug-94Aug-95Aug-96Aug-97Aug-98Aug-99Aug-00Aug-01Aug-02Aug-03Aug-04Aug-05Aug-06Aug-07Aug-08Aug-09 7 Source: GSJBW Research estimates 28
Slide 29: Valuation of Equities relative to Bonds
All Industrials Valuation of Equities relative to Bonds For personal use only MULTIPLE OF BOND YIELD TO EQUITY EARNINGS YIELDS MULTIPLE 1.6 EQUITIES RELATIVELY OVERVALUED 1.4 1.2 +1 Std Dev 1.0 Average 0.8 -1 Std Dev 0.6 EQUITIES RELATIVELY UNDERVALUED 0.4 Feb-88 Feb-89 Feb-90 Feb-91 Feb-92 Feb-93 F
Slide 30: Shareholder Communication
Shareholder Communication For personal use only Website updated www.wilsonassetmanagement.com.au Audio cast Presentations Investor Report Monthly Investment Update & NTA 30
Slide 31: Questions?
For personal use only QUESTIONS? 31
Slide 32: Disclaimer
Disclaimer This presentation has been prepared for use in conjunction with a verbal presentation and should be read in that context. For personal use only Information for the graphs, charts and quoted indices contained in this presentation has been sourced from IRESS Market Technology and WAM Capita