WAM Capital Ltd. · ASX:WAM
WAM Capital — Investor Presentation (August 2012)
21 slides from WAM Capital's investor presentation, Aug 16, 2012
Slide 1: WAM Capital Limited (WAM)
WAM Capital Limited (WAM) For personal use only
Slide 2: Placement
Placement For personal use only • Placement to raise up to $25.9 million • Issue price 161.59 cents - the pre-tax Net Tangible Asset (NTA) per share as at 31 July 2012 • Investors in the placement receive one share plus one listed option • Investors are entitled to the fully franked final dividend o
Slide 3: Aims of placement
Aims of placement For personal use only • A reduction in fixed administrative expenses as they are spread across a larger pool of assets • An increase in the liquidity of the company’s shares • An increase in the size of the company, making it more significant in the market and p potentiallyy improv
Slide 4: Placement - timetable
Placement - timetable For personal use only Announce NTA per share as at 31 July 2012 2 August 2012 Lodge Prospectus with ASIC 2 August 2012 Placement offer opens 10.00am 3 August 2012 Placement offer closes 5.00pm 24 August 2012 Date of allotment 31 August 2012 Expected date of despatch of holdings
Slide 5: WAM Capital: superior returns from growth companies
WAM Capital: superior returns from growth companies For personal use only WAM provides… • Exposure to a diversified portfolio of growth companies, primarily small to medium di cap iindustrial d t i l companies i listed li t d on th the ASX • Exposure to market mispricings and relative value arbitrag
Slide 6: Outperformance since inception
Outperformance since inception For personal use only WAM Capital has outperformed the market by 10.6% p.a. over 13 years Index re-based 800 700 600 500 400 300 200 100 - WAM Capital Ltd - Investment Portfolio (before all expenses, fees, taxes and dividends) S&P/ASX All Ordinaries Accumulation Index
Slide 7: Outperformance: financial year
Outperformance: fi financial i l year For personal use only Financial Year Investment Portfolio S&P/ASX All Ords Outperformance Accumulation Index 1999/2000 +33.3% +11.3% +22.0% 2000/2001 +30.2% +8.9% +21.3% 2001/2002 +32.7% -4.5% +37.2% 2002/2003 +12 3% +12.3% -1.1% 1 1% +13 4% +13.4% 2003/2004 +27
Slide 8: Consistent outperformance
Consistent outperformance For personal use only Since Performance 1 Yr 3 Yrs 5 Yrs 10 Yrs Inception as at 30 June 2012 % %pa %pa %pa %pa (Aug-99) WAM Investment +4 2% +4.2% +16 8% +16.8% +3 5% +3.5% +13 5% +13.5% +17 5% +17.5% Portfolio S&P/ASX All Ordinaries -7.0% % +5.9% % -4.1% % +7.1% % +6.9% %
Slide 9: Dividend growth
Dividend growth For personal use only Final fully franked dividend Cents per share 5.5 cents per share 18.0 Ex date: 17 Sept 2012 Record date: 21 Sept 2012 16.0 Payment date 28 Sept 2012 14.0 12 0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Ordinary Fully Franked Dividend Special Fully Franked Dividend Equal Acce
Slide 10: Who is Wilson Asset Management?
Who is Wilson Asset Management? For personal use only • Manager of three listed investment companies and one unlisted fund • 3 Listed Funds: − WAM Capital Ltd (ASX: WAM) − WAM Research R h Ltd (ASX: (ASX WAX) − WAM Active Ltd (ASX: WAA) • Funds under management: approx $320 million • Focuses on smal
Slide 11: Our funds
Our funds For personal use only Research Market Driven Driven 11
Slide 12: What distinguishes Wilson Asset Management
What distinguishes Wilson Asset Management For personal use only • Over 50 years of experience in the Australian sharemarket with a high degree of street smarts • A unique research rating process • An intensive investee company visitation schedule (800+ meetings per year) • A total focus on managing
Slide 13: Our Style
Our Style For personal use only • Fundamental bottom up approach • Absolute return focus, benchmark unaware • Quick decision making resulting from a flat structure • Increased flexibility due to the relatively small funds under management • A focus on risk adjusted returns with above average cash po
Slide 14: Our business model
Our business model For personal use only Investment process p LIC structure benefits + Investment Superior focus – long term growth Flexible performance + companies mandate record + Experienced team Tight cost control 14
Slide 15: Research Driven rating process
Research Driven rating i process For personal use only Filtering • On cashflow, return on equity, quality of business and management. Rating Process • Rate management • Rate the industry/position Qualitative • Forecast two year EPS growth Quantitative • Valuation measure EPS/PE Buy / Sell criteria •
Slide 16: Market Driven investment process
Market Driven investment process For personal use only We scour the market for opportunities: • Initial public offerings • Capital raisings • Block trades • Oversold position • Takeovers • Listed Investment Companies (LIC) discount to net tangible assets (NTA) • Stocks trading at a discount to their
Slide 17: LICs are superior investment vehicles
LICs are superior investment vehicles For personal use only Listed Investment Companies are very attractive investment vehicles • LICs have outperformed the market ^ • Studies show LICs outperform managed funds*^ • Closed end structure – no applications or redemptions • The abilityy to make longer g
Slide 18: External research coverage
External research coverage For personal use only Research Houses covering listed investment companies & WAM Capital: - Bell Potter Securities - Morgan Stanley Smith Barney - Zenith Partners - Independent Investment Research - APAM LIC Research - Evans & Partners - JBWere - Morningstar - E.L.&C. Bail
Slide 19: Investor communications
Investor communications For personal use only ¾ Website – wamfunds.com.au ¾ Weekly emails – includes market update ¾ Monthly NTA and investment updates ¾ Half yearly shareholder briefings ¾ Half yyearlyy investor newsletters ¾ Half yearly results and media release ¾ Media – Sky Business, Switzer, CN
Slide 20: Questions
For personal use only Questions 20
Slide 21: 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