WAM Research Ltd. · ASX:WAX
WAM Research — Wilson Investment Fund — Investor Presentation (November 2006)
26 slides from WAM Research's investor presentation, November 2006
Slide 1: Wilson Investment Fund Limited Presentation November 2006
WILSON INVESTMENT FUND LIMITED PRESENTATION November 2006
Slide 2: What Are You Investing In?
WHAT ARE YOU INVESTING IN? • Investor for tax purposes - Capital Gains Dividends (Marginal tax rate 23.25%) • Tax Status • Buy and Hold Investor • Looking to buy companies that rate - Research Driven - Investment Driven
Slide 3: Portfolio Structure
PORTFOLIO STRUCTURE As at 30 September 2006 Investment Type $m % Listed Equities 110.91 74.89 Listed Hybrids 17.41 11.75 Fixed Interest and Cash 19.79 13.36 Total Assets 148.11 100.00 No. Total number of ordinary shares on issue 120,144,524
Slide 4: Performance
PERFORMANCE NTA (Including Dividends, Tax & Fees) 150.00 140.25 140.00 130.35 Cents per share 130.00 120.00 112.97 105.26 110.00 98.63 100.00 90.00 Aug-03 Jun-04 Jun-05 Jun-06 Sep-06
Slide 5: Dividends
DIVIDENDS 5.0 Cents per share 4.0 INTERIM 3.0 FINAL 2.0 1.0 0.0 2003/2004 2004/2005 2005/2006 Year
Slide 6: Discount to NTA
DISCOUNT TO NTA As at 30 September 2006 Cents Discount Pre-tax NTA 121.81* 14.2% After-tax NTA 115.82* 9.8% Share Price 104.50** * Before payment of a 2.5 cent final fully franked dividend ** As at close of trading 9/11/06
Slide 7: Performance of Top Holdings Past 12 Months
PERFORMANCE OF TOP HOLDINGS Past 12 Months CODE Company Oct 05 - Oct 06 1 ASX Australian Stock Exchange Ltd 27.2% 2 CCP Credit Corp Grp Ltd 107.5% 3 BEN Bendigo Bank Ltd 31.7% 4 PGA Photon Group Ltd 59.7% 5 OMP Oamps Ltd 44.3% 6 TWR Tower Ltd 46.8% 7 SHV Select Harvests Ltd 3.2% 8 MTS Metcash Ltd 7.
Slide 8: Performance of Top Holdings Past 12 Months
PERFORMANCE OF TOP HOLDINGS Past 12 Months CODE Company Oct 05 - Oct 06 11 PRY Primary Health Care Ltd 26.3% 12 ABS A.B.C Learning Ltd 6.7% 13 MMA MMC Contrarian Ltd 8.7% 14 WBBPB Wide Bay Reset Pref 34.3% 15 TAH Tabcorp Holdings Ltd 6.2% 16 APE AP Eagers Ltd 25.2% 17 IFL IOOF Holdings Ltd 33.2% 18
Slide 9: Top 10 Best Performers This Financial Year
TOP 10 BEST PERFORMERS This Financial Year STOCK PERFORMANCE CODE COMPANY Jun 06 – Nov 06* 1 SBC Southern Cross Broadcasting (Aust.) Ltd 53.4% 2 ICH Infochoice Ltd 52.4% 3 BBB B Digital Ltd 45.0% 4 PGA Photon Group Ltd 34.4% 5 AVE Aveum Ltd 34.1% 6 APE AP Eagers Ltd 30.4% 7 TTS Tattersalls Ltd 29.0%
Slide 10: Top 10 Worst Performers This Financial Year
TOP 10 WORST PERFORMERS This Financial Year STOCK PERFORMANCE CODE COMPANY Jun 06 – Nov 06* 1 SAQ Sydney Attractions Group Ltd -11.4% 2 NSX Newcastle Stock Exchange Ltd -3.3% 3 PPT Perpetual Trustees Ltd -1.6% 4 PME Promedicus Ltd -0.7% 5 BNB Babcock & Brown Ltd 2.4% 6 SHV Select Harvests Ltd 2.5% 7
Slide 11: Market Earnings Yield Less Bond Yield
3 equities cheap vs bonds 2 1 % 0 -1 -2 equities expensive vs bonds -3 1995 1997 1999 2001 2003 2005 market earnings yield less bond yield Source: UBS
Slide 12: Market ex Resources Earnings Yield Less Bond Yield
3 equities cheap vs bonds 2 1 % 0 -1 -2 equities expensive vs bonds -3 1995 1997 1999 2001 2003 2005 market ex resources earnings yield less bond yield Source: UBS
Slide 13: General Market: Small Ords vs. ASX
GENERAL MARKET Small Ords vs. ASX 200 Current PER SMALL ORDI NARI ES/ ASX 2 0 0 - Re la t iv e PER Small Ordinaries (07e) 15.99 Prospective GSJBW Small Ordinaries PER (Pre G/will) v's ASX 200 source: GSJBW Research Estimates ASX 200 (07e) 13.74 PER Relative(%): 16.3 P re m / D is c ( %) 35.0 25.0 15
Slide 14: General Market: All Industrials Prospective PER
GENERAL MARKET All Industrials Prospective PER ALL INDUSTRIALS PROSPECTIVE PER VALUATION GSJBW Qua nt it a t iv e Re se a rch 21.0 19.0 H igh ( + 1 Std D e v ) 17.0 15.0 AVERAGE 13.0 11.0 Low ( - 1 Std D e v ) 9.0 7.0 Feb-88 Feb-89 Feb-90 Feb-91 Feb-92 Feb-93 Feb-94 Feb-95 Feb-96 Feb-97 Feb-98 Feb-9
Slide 15: General Market: All Resources Prospective PER
GENERAL MARKET All Resources Prospective PER ALL RESOURCES PROSPECTIVE PER VALUATION GSJBW Qua nt it a t iv e Re se a rch 29.0 27.0 25.0 23.0 H igh ( + 1 Std D e v ) 21.0 19.0 17.0 AVERAGE 15.0 13.0 Low e r ( - 1 Std D e v ) 11.0 9.0 Aug-90 Aug-91 Aug-92 Aug-93 Aug-94 Aug-95 Aug-96 Aug-97 Aug-98 Aug
Slide 16: General Market: BHP vs. ASX
GENERAL MARKET BHP vs. ASX 200 Current PER BH P/ ASX 2 0 0 - Re la t iv e PER BHP (07e) 9.79 Prospective GSJBW BHP PER (Pre G/will) v's ASX 200 ASX 200 (07e) 13.74 source: GSJBW Research Estimates PER Relative(%): -28.8 P re m / D is c ( %) 100.0 80.0 60.0 40.0 +1 StDev : 33.3% $52.85 20.0 Ave REL P
Slide 17: General Market: ANZ vs. ASX
GENERAL MARKET ANZ vs. ASX 200 Current PER ANZ/ ASX 2 0 0 - Re la t iv e PER ANZ (07e) 14.44 Prospective GSJBW ANZ PER (Pre G/will) v's ASX 200 ASX 200 (07e) 13.74 source: GSJBW Research Estimates PER Relative(%): 5.1 P re m / D is c ( %) $29.8 0.0 -10.0 +1 StDev : -14% $24.36 -20.0 Ave REL PER :-25
Slide 18: General Market: CBA vs. ASX
GENERAL MARKET CBA vs. ASX 200 Current PER CBA/ ASX 2 0 0 - Re la t iv e PER CBA (07e) 14.87 Prospective GSJBW C BA PER (Pre G/will) v's ASX 200 ASX 200 (07e) 13.74 source: GSJBW Research Estimates PER Relative(%): 8.2 P re m / D is c ( %) 10.0 $48.5 0.0 +1 StDev : -4.6% $42.74 -10.0 Ave REL PER :-1
Slide 19: General Market: WBC vs. ASX
GENERAL MARKET WBC vs. ASX 200 Current PER W BC/ ASX 2 0 0 - Re la t iv e PER WBC (07e) 13.34 Prospective GSJBW WBC PER (Pre G/will) v's ASX 200 source: GSJBW Research Estimates ASX 200 (07e) 13.74 PER Relative(%): -2.9 P rem/ D is c ( %) 0.0 $24.36 -10.0 +1 StDev : -11.3% $22.26 -20.0 Ave REL PER :
Slide 20: General Market: NAB vs. ASX
GENERAL MARKET NAB vs. ASX 200 Current PER NAB (07e) 15.23 NAB/ ASX 2 0 0 - Re la t iv e PER ASX 200 (07e) 13.74 Prospective GSJBW NAB PER (Pre G/will) v's ASX 200 PER Relative(%): 10.9 source: GSJBW Research Estimates P re m / D is c ( %) 15.0 $40.2 5.0 -5.0 +1 StDev : -8.2% $33.28 -15.0 Ave REL PE
Slide 21: Outlook
OUTLOOK 1. GROWTH PHASE - Buy Backs - Approaching fully invested 2. HARVEST CAPITAL GAINS 3. 5 Years on - 2011 Market Cap. $300 million Dividends 10.0 cents f.f. NTA $1.99
Slide 22: Picking Stocks! Part 1
PICKING STOCKS! PART 1 Source: Australian Financial Review
Slide 23: Picking Stocks! Part 2
PICKING STOCKS! PART 2 Source: Australian Financial Review
Slide 24: Picking Stocks! Part 3
PICKING STOCKS! PART 3 Source: Australian Financial Review
Slide 25: Questions?
QUESTIONS?
Slide 26: Wilson Investment Fund Limited Presentation November 2006
WILSON INVESTMENT FUND LIMITED PRESENTATION November 2006
Wilson Investment Fund — Investor Presentation (November 2006) on 6ix