WAM Research Ltd. · ASX:WAX
WAM Research — Investor Presentation (April 2013)
17 slides from WAM Research's investor presentation, Apr 30, 2013
Slide 1: WAM Research Limited (WAX) Investor Presentation
WAM Research Limited (WAX) Investor Presentation For personal use only April / May 2013
Slide 2: Highlights
Highlights For personal use only • Growth in interim dividend +7.7% to 3.5 cents per share fully franked • Annualised FY2013 fully franked interim dividend yield of 6.9%* • Investment portfolio +30.0% for year to 31 March 2013 outperforming the S&P/ASX All Ordinaries Accumulation Index by 12.2%. * B
Slide 3: 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 4: 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 5: Investment objectives
Investment objectives For personal use only • Deliver investors an income stream in the form of fully franked dividends • Achieve a high real rate of return, comprising both income and capital growth, within risk parameters acceptable to the directors 5
Slide 6: Dividend Growth
Dividend Growth For personal use only Cents per share 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Special fully franked dividend Ordinary fully franked dividend * Annualised interim dividend 6
Slide 7: Performance
Performance For personal use only Performance Fin YTD 1 Year 3 Years 5 Years as at 31 March 2013 % % %pa %pa WAX Investment Portfolio +31.9% +30.0% +14.4% +9.1% S&P/ASX All Ordinaries +24.8% +17.8% +5.0% +2.8% Accumulation Index Outperformance +7.1% +12.2% +9.4% +6.3% 7
Slide 8: Outperformance since change in investment strategy
Outperformance since change in investment strategy For personal use only Index re-based 400 350 300 250 200 150 100 50 - WAM Research Limited - Investment Portfolio before all expenses, fees and taxes S&P/ASX All Ordinaries Accumulation Index 8
Slide 9: 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 10: 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 NAB National Australia Bank Ltd CCV Cash Converters International APE AP Eagers Ltd AHE Automotive Holdings Group BRG Breville Group Ltd AMM Amcom Telecommunications Ltd MMS McM
Slide 11: Current issues
Current issues For personal use only • Proposed superannuation changes • National Broadband Network (NBN) • Australian dollar • House prices • Federal election 11
Slide 12: 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 12
Slide 13: 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 13
Slide 14: All Ordinaries Index - long term performance
All Ordinaries Index - long term performance For personal use only 10,000 1,000 100 10 14
Slide 15: 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 16: 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. 16
Slide 17: 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