WAM Active Ltd. · ASX:WAA
WAM Active — Investor Presentation (October 2010)
24 slides from WAM Active's investor presentation, Oct 13, 2010
Slide 1: WAM Active Limited Presentation October 2010
WAM ACTIVE LIMITED For personal use only (WAA) A.B.N. 49 126 420 719 Presentation October 2010 1
Slide 2: What is WAM Active (WAA)
What is WAM Active (WAA) For personal use only • An active investor in listed Australian equities • High turnover, actively managed portfolio • Concentrates on: – Corporate transactions – Capital raisings (168 in last 10 months) – Block trades – Discount to assets arbitrage – Takeover a eo e arbitra
Slide 3: Objectives
Objectives For personal use only • Preserve shareholders capital • To payout a consistent and growing stream of fully franked dividends • To achieve capital growth with minimum risk • To grow the funds under management 3
Slide 4: What WAA delivers
What WAA delivers For personal use only • Quick decision making • Bottom up approach • Staying y g very y close to the market and investee companies p • Strong risk adjusted returns • Significant market experience • Closed end fund avoiding being forced seller and buyer at inappropriate times 4
Slide 5: Risk Profile
Risk Profile For personal use only • Reverts to cash if no trade identified. The fund has averaged 57.3% of cash since listing Percentagein Percentage in Cash 100.00% • Cash was 21.0% in Aug 2009, 90.00% cash 67.8% in August 2010 80 00% 80.00% • Usual purchased positions 6%, 70.00% 4% and 2% 60.00%
Slide 6: Financial Highlights
For personal use only Financial i i l Highlights 6
Slide 7: Financial Year to August 2010
Financial Year to 30 August 2010 For personal use only 2010 Total Income $334k Operating profit after tax $178K Operating profit per share 0.9c 7
Slide 8: Performance
Performance For personal use only % 50.0 40.0 30.0 20.0 10.0 0.0 -10.0 -20.0 -30.0 -40.0 -50.0 50.0 -60.0 WAM Active Limited - Gross Portfolio before all expenses, fees, taxes and dividends S&P/ASX All Ordinaries Accumulation Index 8
Slide 9: Performance - Attribution
Performance - Attribution For personal use only Contribution to Total Return on Capital Trade Type Performance Deployed 1. Block trades at discount 4.4% 17.6% 2. IPO/Capital raising 29.2% 8.4% 3. Takeover 2.6% 6.3% 4 Oversold position/trading/asset allocation 4. 23 1% 23.1% 2 7% 2.7% 5. Short Sellin
Slide 10: Dividends
For personal use only Dividends 10
Slide 11: Dividends
Dividends For personal use only • Government reform in June 2010 - has changed the way di id d are paid dividends id • Dividends no longer affected by movement in value of the portfolio • Dividends can be p paid if the company p y is solvent • WAA has franking credits of 8.16c per share as of 30 Sep
Slide 12: Dividends Chart
Dividends Chart For personal use only Cents Per Share 3.5 3 2.5 2 1.5 1 0.5 0 Ordinary 12
Slide 13: NTA and Share Price
For personal use only NTA and d Share Price 13
Slide 14: NTA & Share Price History
NTA & Share Price History For personal use only 1.25 1 15 1.15 1.05 0.95 0.85 0.75 0.65 NTA After-tax Share price 14
Slide 15: Option Issue
For personal use only Option Issue 15
Slide 16: Option Issue
Option Issue For personal use only • 1 for 1 option issue strike price at $1 $1.15, 15 expires 30 April 2011 (ASX:WAAO) • NTA after ft ttax as att the th end d off August A t $1.13 $1 13 • Looking to increase the size of the fund • Expect future capital management 16
Slide 17: Stock Selection
For personal use only Stock Selection 17
Slide 18: Best Performing Stocks months to August 2010
Best Performing Stocks 2 months to 31 August g 2010 For personal use only Unrealised/Realised Code Company Gains $ HSP Healthscope Limited 85,766 VTP Van Eyk Three Pillars Limited 56,061 RHG RHG Limited 46 197 46,197 MND Monadelphous Group Limited 38,785 NAB National Australia Bank Limited 32 775 32
Slide 19: Worst Performing Stocks months to August 2010
Worst Performing Stocks 2 months to 31 August g 2010 For personal use only Unrealised/Realised Code Company Losses ($) DJS David Jones Limited (34,642) DYE Dyesol Limited (34,531) MYR ye Holdings Myer o d gs Limited ted ((25,694) 5,69 ) PXUPA Paperlinx SPS (20,959) MQG Macquarie Group Limited (19 46
Slide 20: Prosperity Resources - PSP
Prosperity Resources - PSP For personal use only • Gold and Iron Ore Exploration company • Company raised $2.2 million by issuing shares at 15 cents • Share Price was 20.5 cents at the time • Placement done at 26.8% discount • Sold Stock at 23.5 cents 20
Slide 21: RHG Limited - RHG
RHG Limited - RHG For personal use only • Provider of residential home loans (Formerly Rams Home Loans Group) • Mortgage book is in run off, not originating any new mortgages • Market Capitalisation: $217 million, Cash: $465 million • Net Tangible g Assets ((NTA): ) $$1.02 • Share price: $0.68 21
Slide 22: Outlook
Outlook For personal use only • Increase in M&A Activity • Increase in short selling opportunities • Participation P ti i ti iin di discounted t d capital it l raisings i i • Position for extreme valuation opportunities • Defensive 22
Slide 23: Questions?
For personal use only QUESTIONS? 23
Slide 24: Disclaimer
Disclaimer For personal use only 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 and WAM Capita