WAM Active Ltd. · ASX:WAA
WAM Active — Investor Presentation (April 2013)
19 slides from WAM Active's investor presentation, Apr 30, 2013
Slide 1: WAM Active Limited (WAA) Investor Presentation
WAM Active Limited (WAA) Investor Presentation For personal use only April / May 2013
Slide 2: Highlights
Highlights For personal use only • Growth in interim dividend +5.6% to 4.75 cents per share fully franked • Annualised FY2013 fully franked interim dividend yield of 8.4%* • Positive investment portfolio performance of +20.8% for year to 31 March 2013 * Based on 23 April 2013 closing price $1.13 2
Slide 3: 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” • Last traded price as at 23 April 2013 was 6.5 cents • To date 59.3% of options have been exercised 3
Slide 4: 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 5: 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 6: Investment objectives
Investment objectives For personal use only • Deliver a regular income stream via fully franked dividends • Provide a positive return with low volatility, after fees, over most periods of time • Preserve capital 6
Slide 7: Dividend growth
Dividend growth For personal use only cents per share 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2008/09 2009/10 2010/11 2011/12 2012/13* Fully franked dividends * Annualised interim dividend 7
Slide 8: Positive returns since inception
Positive returns since inception For personal use only Index re-based 120 Portfolio Portfolio +96% xx% since since GFCGFC 100 80 60 40 20 Market still negative ‐ (20) (40) (60) WAM Active Ltd - Investment Portfolio before all expenses, fees and taxes S&P/ASX All Ordinaries Accumulation Index 8
Slide 9: Positive returns since inception
Positive returns since inception For personal use only Since Performance 1 Year 2 Years 3 Years Inception as at 31 March 2013 % %pa %pa (Jan-08) %pa WAA Investment +20.8% +12.4% +10.9% +13.7% Portfolio UBS Bank Bill Index +3.6% +4.2% +4.5% +4.8% Outperformance +17.2% +8.2% +6.4% +8.9% S&P/ASX All Or
Slide 10: 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 11: Market Driven strategy
Market Driven strategy For personal use only Financial Year to 31 March 2013 Annualised turnover of 4 times invested equity: Individual stocks traded: 263 Takeovers: 8 Placements: 34 Short Sales: 20 11
Slide 12: Top stocks
Top 10 stocks as at 31 March 2013 For personal use only % Gross Company Assets CYA Century Australia Investments Limited 3.5% HIL Hills Holdings Limited 3.3% ELI Emerging Leaders Investments Limited 3.1% BKW Brickworks Limited 3.0% HVN Harvey Norman Holdings Limited 2.7% INA Ingenia Communities Grou
Slide 13: Current issues
Current issues For personal use only • Proposed superannuation changes • National Broadband Network (NBN) • Australian dollar • House prices • Federal election 13
Slide 14: 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 14
Slide 15: 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 15
Slide 16: All Ordinaries Index - long term performance
All Ordinaries Index - long term performance For personal use only 10,000 1,000 100 10 16
Slide 17: 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 18: 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. 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, Veritas Secur