WAM Active Ltd. · ASX:WAA
WAM Active — Investor Presentation (November 2012)
19 slides from WAM Active's investor presentation, Nov 28, 2012
Slide 1: WAM Active Limited (WAA) Investor Presentation
WAM Active Limited (WAA) Investor Presentation For personal use only November 2012
Slide 2: Executive summary
Executive summary For personal use only • 12.5% increase in FY2012 fully franked dividend to 9.0 cents per share • Annualised FY2012 fully franked dividend yield 8.4%* • Investment Portfolio +10 +10.8% 8% for 12 months to 31 October 2012 outperforming the S&P/ASX All Ords Accum by 1.9% • Total share
Slide 3: Investment objectives
Investment objectives For personal use only • Deliver D li a regular l iincome stream t via i ffully ll ffranked k d di dividends id d • P Provide id a positive iti return t with ith llow volatility, l tilit after ft ffees, over most periods of time • Preserve capital 3
Slide 4: Dividend growth
Dividend growth For personal use only cents per share 9.0 8.0 7.0 60 6.0 5.0 4.0 3.0 2.0 10 1.0 0.0 2008/09 2009/10 2010/11 2011/12 Fully franked dividends 4
Slide 5: Positive returns since inception
Positive returns since inception For personal use only 11.9% p.a. investment return since inception Index re-based Portfolio +70% 80 since GFC 60 40 20 Market still 0 negative -20 -40 -60 2007 2008 2009 2010 2011 2012 WAM Active Ltd - Investment Portfolio (before all expenses, fees and taxes) S&P/AS
Slide 6: Positive returns since inception
Positive returns since inception For personal use only Since Performance 1 Year 2 Years 3 Years Inception as at 31 October 2012 % %pa %pa (Jan-08) %pa WAA Investment +10.8% +8.9% +6.4% +11.9% Portfolio S&P/ASX All Ordinaries +8.9% +2.3% +3.5% -2.8% Accumulation Index Outperformance +1.9% +6.6% +2.9%
Slide 7: Premium / Discount to NTA
Premium / Discount to NTA For personal use only 30% 20% 10% 0% -10% -20% -30% 30% 2008 2009 2010 2011 2012 7
Slide 8: Option issue
Option issue For personal use only • Exercise price: $1.08 • Can exercise at any time up until 12 December 2013 • Options trade on the ASX under the code “WAAO” • To date 19.9% of issued options have been converted into shares 8
Slide 9: Option issue benefits
Option issue benefits For personal use only • Reduction in fixed administrative expense ratio • Increase in liquidity of WAM Active shares • Greater market presence – potentially improve coverage by research firms, dealer groups and financial advisers 9
Slide 10: Investment process
Investment process “ Market Driven” 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 it l raisings i i • block trades • oversold o e so d pos
Slide 11: Market Driven strategy
Market Driven strategy For personal use only Financial Year to 31 October 2012 Equity Exposure 100% 90% Annualised turnover of 5.9 times 80% invested equity: 70% Number of trades: 1,354 60% 50% Individual stocks traded: 177 40% 30% Takeovers: 6 20% 10% Placements: 23 0% Aprr‐08 Jull‐08 Octt‐08 Aprr‐
Slide 12: Top stocks
Top 10 stocks as at 31 October 2012 For personal use only % Gross Company Assets CSR CSR Limited 3.0% INA Ingenia Communities Limited 2.9% RHG RHG Limited 2.8% BKW Brickworks Limited 2.8% ALS Alesco Corporation Limited 2 8% 2.8% CCQ Contango Capital Partners Limited 2.7% CYG Coventryy Group p Limite
Slide 13: Brickworks Limited (BKW)
Brickworks Limited (BKW) For personal use only Sh Share price i $12.00 $11.50 $11.00 $10.50 $10.00 Commenced Buying $9.50 Oct‐12 Nov‐12 • Manufacturer of bricks and pre-cast products • Idea generated from internal discussions around interest rate sensitive companies • Our analysis showed capacity in
Slide 14: RHG Limited (RHG)
RHG Limited (RHG) For personal use only Share price $1.40 $1.20 79c dividend $1.00 $0.80 10c dividend 10c dividend $0.60 Commenced Buying $0.40 $0.20 6c dividend 4.5c dividend $0.00 • Mortgage service provider • Loan book in run-off run off • Deep value opportunity • y g in the depths Started buying
Slide 15: Market Outlook
Market Outlook For personal use only • Further interest rate cuts forecast • Lower funding costs and sslow o ggrowth o t leads eads to continued high level of corporate activity • Recent sharemarket rally - expansion of price to earnings multiples with earnings revisions coming 15
Slide 16: Investor communication
Investor communication For personal use only ¾ Half yearly investor presentations ¾ Website – wamfunds.com.au ¾ Subscribe for weekly emails – includes market update ¾ Monthly investment update and NTA announcement ¾ Audio casts – monthly ¾ Media – Sky Business, Switzer, CNBC, newspapers, industry ma
Slide 17: Wilson Asset Management in the community
Wilson Asset Management i the in h communityi For personal use only We care deeply about the well-being of the wider community because helping others is part of our culture culture. Recently, Recently we entered a team into the Goulburn to Sydney Cycle Classic which raised over $80,000 for Odyssey H
Slide 18: Questions?
For personal use only Questions? 18
Slide 19: 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, WAM Capital L