WAM Capital Ltd. · ASX:WAM
WAM Capital — Investor Presentation (April 2013)
22 slides from WAM Capital's investor presentation, Apr 30, 2013
Slide 1: WAM Capital Limited Investor Presentation
WAM Capital Limited (WAM) Investor Presentation For personal use only April / May 2013
Slide 2: Highlights
Highlights For personal use only • Growth in interim dividend +9.1% to 6.0 cents per share fully franked • Annualised FY2013 fully franked interim dividend yield of 7.3%* • Investment portfolio +24.1% for the year to 31 March 2013 outperforming the S&P/ASX All Ordinaries Accumulation Index by 6.3% *
Slide 3: Highlights
Highlights For personal use only • Successful Premium Investors merger completed • 76% of options have been exercised to date • Shareholders increased by over 130% to over 10,000 in 12 months 3
Slide 4: Option issue
Option issue For personal use only • Exercise price: $1.60 • Can exercise at any time up until 31 July 2013 • Options trade on the ASX under the code “WAMO” • Last traded price as at 23 April 2013 was 5.3 cents 4
Slide 5: Wilson Asset Management overview
Wilson Asset Management overview For personal use only • Fund manager for 15 years • 3 Listed Investment Companies (LICs): − WAM Capital Ltd (ASX: WAM) – FUM: $495m − WAM Research Ltd (ASX: WAX) – FUM: $126m − WAM Active Ltd (ASX: WAA) – FUM: $27m • Investment focus: − undervalued and under research
Slide 6: Experienced team
Experienced team For personal use only Geoff Wilson - Chairman / Portfolio Manager Kate Thorley - CEO & Company Secretary Chris Stott - CIO / Portfolio Manager Martin Hickson - Analyst / Dealer Matt Haupt - Equity Analyst Mark Tobin - Assistant Analyst Linda Vo - Senior Financial Accountant Lillie J
Slide 7: Investment objectives
Investment objectives For personal use only • Deliver a growing stream of fully franked dividends • Provide capital growth • Preserve capital 7
Slide 8: Creating superior investment performance
Creating superior investment performance For personal use only How we create shareholder wealth • Undervalued and under researched growth companies • Prevalent in the small to medium sized industrial sector WAM Capital has delivered • Regular stream of fully franked dividends • Strong and consistent
Slide 9: Dividend growth
Dividend growth For personal use only Current annualised dividend yield 7.3% fully franked Cents per share 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. 9
Slide 10: Consistent performance
Consistent performance For personal use only Since Performance 1 Year 3 Years 5 Years 10 Years Inception as at 31 March 2013 % %pa %pa %pa %pa (Aug-99) WAM Investment +24.1% +15.4% +13.3% +15.9% +18.5% Portfolio S&P/ASX All Ordinaries +17.8% +5.0% +2.8% +10.3% +8.2% Accumulation Index Outperformance
Slide 11: Outperformance since inception
Outperformance since inception For personal use only 18.5% p.a. investment return over 13 years Index re‐based 1,000 WAM Portfolio 900 +57.5% above pre- GFC peak 800 700 600 500 400 Index -9.9% from 300 pre-GFC peak 200 100 ‐ WAM Capital Limited - Investment Portfolio before all expenses, fees, taxe
Slide 12: Identifying undervalued growth stocks
Identifying undervalued growth stocks For personal use only Management contact • Over 1,000 company meetings per year “Research Driven” rating process • Rate management Qualitative • Rate the industry/position • Forecast two year EPS growth Quantitative • Valuation measure EPS/PE Filtering • On cash
Slide 13: Top growth stocks
Top 10 growth stocks “Research Driven” For personal use only As at 31 March 2013 As at 31 March 2012 SKE Skilled Group Ltd RKN Reckon Ltd CCV Cash Converters International BRG Breville Group Ltd AHE Automotive Holdings Group Ltd MMS McMillan Shakespeare Ltd AMM Amcom Telecommunications Ltd COF Coffe
Slide 14: Investment process
Investment process “Market Driven” For personal use only We utilise our extensive information network in the investment community and exploit mispricings in the market. These opportunities include: • initial public offerings • capital raisings • block trades • oversold positions • takeovers • Listed
Slide 15: Top Market Driven stocks
Top 10 Market Driven stocks For personal use only As at 31 March 2013 As at 31 March 2012 CYA Century Australia Investments Ltd ELI Emerging Leaders Investments Ltd HIL Hills Holdings Ltd IBC Ironbark Capital Ltd IBC Ironbark Capital Ltd CCQ Contango Capital Partners Ltd ELI Emerging Leaders Investm
Slide 16: Current issues
Current issues For personal use only • Proposed superannuation changes • National Broadband Network (NBN) • Australian dollar • House prices • Federal election 16
Slide 17: Market outlook
Market outlook For personal use only • First stage of bull market • Interest rates to remain low in 2013 • Corporate activity to increase late 2013 • Earnings growth to pick up in 2013/14 17
Slide 18: History repeating
History repeating For personal use only All Ordinaries Index - % Change from January 1973 High vs % change from October 2007 High Blue Line January 1973 & Beyond vs Red Line October 2007 & Beyond Source: Veritas Securities 18
Slide 19: All Ordinaries Index - long term performance
All Ordinaries Index - long term performance For personal use only 10,000 1,000 100 10 19
Slide 20: Investor communication
Investor communication For personal use only ¾ Subscribe for weekly emails – includes market update ¾ Half yearly investor presentations ¾ Website – wamfunds.com.au ¾ Monthly investment update and NTA announcement ¾ Audio casts – monthly ¾ Media – Sky Business, Switzer, CNBC, newspapers, industry ma
Slide 21: Wilson Asset Management in the community
Wilson Asset Management in the community For personal use only We care about the well-being of the wider community. We have supported various organisations, some of which are featured below. All donations are made by individual staff and our management company and not the listed entities. 21
Slide 22: Disclaimer
For personal use only Disclaimer This presentation has been prepared for use in conjunction with a verbal presentation and should be read in that context. Information for the graphs, charts and quoted indices contained in this presentation has been sourced from IRESS Market Technology, Veritas Secur