WAM Active Ltd. · ASX:WAA
WAM Active — Investor Presentation (April 2016)
33 slides from WAM Active's investor presentation, Apr 11, 2016
Slide 1: Investor Presentation April 2016
For personal use only Investor Presentation April 2016
Slide 2: 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 Wilson Asset Management (International
Slide 3: Agenda
Agenda For personal use only 1 2 3 4 About Wilson Asset WAM Investment Investment Management Leaders themes and portfolio trends 5 6 7 8 Performance: Making a Investor Questions and WAM Capital Limited difference communication answers WAM Research Limited WAM Active Limited 3
Slide 4: About Wilson Asset Management
About Wilson Asset Management For personal use only • Our team is passionate about making a difference • We are innovative, agile and entrepreneurial. Our investment approach and results are proven • We invest our time and expertise in causes that resonate with us • We value shareholder engagement,
Slide 5: Experienced team
Experienced team For personal use only Geoff Wilson Kate Thorley B Sc GMQ FAICD FFinsia B Com CPA Grad Dip ACG Chairman / Portfolio Manager Chief Executive Officer / Company Secretary Chris Stott Matthew Haupt B Bus Grad Dip App Fin CFA B Com Grad Dip App Fin Chief Investment Officer Portfolio Manag
Slide 6: Our listed investment companies
Our listed investment companies For personal use only WAM Capital WAM Research WAM Active (ASX: WAM) (ASX: WAX) (ASX: WAA) Gross assets $892.9m $207.7m $35.8m Share price* $2.23 $1.34 $1.08 Pre tax NTA $1.87 $1.17 $1.01 Premium to NTA* 19.2% 14.5% 6.9% Fully franked dividend 6.5% 6.3% 4.6% yield*^ R
Slide 7: WAM Leaders
WAM Leaders (ASX: WLE) For personal use only Investment objectives: 1 Deliver a stream of fully franked dividends 2 Provide capital growth 3 Preserve capital • Research Driven • Active The Offer: • Index and sector • $1.10 issue price + one for one bonus option issue • Raising up to $165m + oversubs
Slide 8: WAM Leaders: how we will invest
WAM Leaders: how we will invest For personal use only INVESTMENT FOCUS: S&P/ASX 200 Index Research Driven investment idea generation Market Driven investment idea generation Conduct detailed research and meetings with Identify mispricing company management, industry and analysts Undertake qualitativ
Slide 9: WAM Leaders: the opportunity
WAM Leaders: the opportunity For personal use only Active investment Experienced Designated in large-cap listed investment team large-cap team companies Wilson Asset Management’s WAM Leaders will benefit A rare opportunity to gain investment team has from a designated team with exposure to the S&P/A
Slide 10: WAM Leaders: IPO dates
WAM Leaders: IPO dates For personal use only Broker firm offer expected to close 5.00pm, 10 May 2016 WAM priority allocation expected to close 5.00pm, 17 May 2016 Offer expected to close 5.00pm, 17 May 2016 Expected date of allotment / date of dispatch of holding statements 24 May 2016 Shares and op
Slide 11: Macroeconomic outlook
Macroeconomic outlook For personal use only Housing bubble? Oil price Bear market recovery? Further interest rate cut? 11
Slide 12: New South Wales outlook
New South Wales outlook For personal use only National Gross Domestic Product growth FY2015/16: 2.6% NSW Gross Domestic Product growth: 2.5% NSW unemployment rate: 5.5% NSW is currently the main driver of the nation’s economy Residential construction activity is surging, as is the infrastructure sec
Slide 13: Victoria outlook
Victoria outlook For personal use only National Gross Domestic Product growth FY2015/16: 2.6% VIC Gross Domestic Product Growth: 2.1% VIC unemployment rate: 6.5% Victoria is benefitting from population growth, tourism flows, residential construction activity, and international student enrolments Res
Slide 14: Queensland outlook
Queensland outlook For personal use only National Gross Domestic Product growth FY2015/16: 2.6% QLD Gross Domestic Product growth: 4.1% QLD unemployment rate: 6.0% Queensland’s economy is expected to grow strongly due to LNG exports Population growth moderating Residential construction activity is s
Slide 15: Australian Capital Territory outlook
Australian Capital Territory outlook For personal use only National Gross Domestic Product growth FY2015/16: 2.6% ACT Gross Domestic Product growth: 1.2% ACT unemployment rate: 5.3% Economy is expected to remain challenged while the Federal budget is strained Population growth has improved Heading i
Slide 16: South Australia outlook
South Australia outlook For personal use only National Gross Domestic Product growth FY2015/16: 2.6% SA Gross Domestic Product growth: 1.2% SA unemployment rate: 7.3% Outlook remains challenging, reflecting industry structure and sluggish population growth Manufacturing sector remains under pressure
Slide 17: Western Australia outlook
Western Australia outlook For personal use only National Gross Domestic Product growth FY2015/16: 2.6% WA Gross Domestic Product growth: 2.6% WA unemployment rate: 6.9% Decline in commodity prices, peaking of mining investment activity, slowing population growth, and strain in the housing sector wil
Slide 18: Australia's tourism boom
Australia’s tourism boom For personal use only • Australia is experiencing a tourism boom • Weak Australian dollar driving domestic demand, as well as increasing the appeal of Australia as a travel destination for overseas visitors • In the 12 months to December 2015, domestic and international tour
Slide 19: The battle between millennials and baby boomers
The battle between millennials and baby boomers For personal use only • Rising tension between millennials and baby boomers is an emerging economic theme • In the US, millennials have eclipsed baby boomers in terms of population but not on spending • Millennials are underpaid and swimming in student
Slide 20: Continued Chinese demand
Continued Chinese demand For personal use only • While the Australian sharemarket has fallen, the share prices of ASX-listed companies with exposure to the Chinese consumer have skyrocketed • The most popular product category for export to China is skincare • Dramatic falls on China's sharemarket an
Slide 21: What we like – Research Driven: Southern Cross Media
What we like – Research Driven For personal use only Southern Cross Media ASX: SXL Profile Australian media company with regional and metro radio assets, as well as a regional TV asset through an affiliate deal with Channel Ten Background • Market cap $850m • Forward PE of 10x • EPS growth of 14% $
Slide 22: What we like – Market Driven: Pacific Brands
What we like – Market Driven For personal use only Pacific Brands ASX: PBG Profile Australian consumer products company which owns a portfolio of brands, including Bonds and Sheridan Background • Market cap: $940mil • FY16 PE of 19x • EPS growth of 33% • Bonds’ profitability turn around $ coupled wi
Slide 23: What has worked – Research Driven: The A2 Milk Company
What has worked – Research Driven For personal use only The A2 Milk Company ASX: A2M Profile Retailer of A2 branded milk products including liquid milk, yoghurt and infant formula Why we • On the ground research identified bought it huge demand for infant formula • Large growth in grey market, where
Slide 24: What didn't work – Market Driven: Spotless Holdings
What didn’t work – Market Driven For personal use only Spotless Holdings Ltd ASX: SPO Profile Outsourced facilities, laundry and linen provider to private and government departments Why we • We believed accretive acquisitions bought it and contract wins would lead to earnings upgrades • Company conf
Slide 25: WAM Capital: outperformance
WAM Capital: outperformance For personal use only Performance at Since 1 3 5 10 Inception 29 February 2016 (% pa) YEAR YEARS YEARS YEARS (Aug 1999) WAM Investment Portfolio* 12.5% 13.9% 13.5% 12.9% 17.7% S&P/ASX All Ordinaries -12.2% 3.2% 4.6% 4.5% 7.5% Accumulation Index Outperformance +24.7% +10.7
Slide 26: WAM Capital: dividend growth
WAM Capital: dividend growth For personal use only WAM Capital dividends since inception Cents per share 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Ordinary fully franked dividend Special fully franked dividend Equal access share buy-back *Annualised interim dividend WAM Capital is committed to pa
Slide 27: WAM Research: outperformance
WAM Research: outperformance For personal use only Since change Performance at 1 3 5 in investment strategy 29 February 2016 (% pa) YEAR YEARS YEARS (July 2010) WAX Investment Portfolio* 15.4% 18.7% 17.1% 18.9% S&P/ASX All Ordinaries -12.2% 3.2% 4.6% 7.0% Accumulation Index Outperformance +27.6% +15
Slide 28: WAM Research: dividend growth
WAM Research: dividend growth For personal use only WAM Research dividends since inception Cents per share 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Ordinary fully franked dividend Special fully franked dividend *Annualised interim dividend The Board is committed to paying an increasing stream of full
Slide 29: WAM Active: outperformance
WAM Active: outperformance For personal use only Performance at Since 1 3 5 Inception 29 February 2016 (% pa) YEAR YEARS YEARS (Jan 08) WAA Investment Portfolio* 9.5% 9.2% 10.6% 12.2% S&P/ASX All Ordinaries -12.2% 3.2% 4.6% 1.2% Accumulation Index Outperformance +21.7% +6.0% +6.0% +11.0% UBS Bank Bi
Slide 30: WAM Active: dividends
WAM Active: dividends For personal use only WAM Active dividends since inception Cents per share 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16* Return of Capital Fully franked dividends *Annualised interim dividend The Board is committed to paying an i
Slide 31: Making a difference – Pledge 1%
Making a difference – Pledge 1% For personal use only In March, Wilson Asset Management joined Pledge 1% Pledge 1% is a global Pledge 1% empowers We are committed We will be increasing corporate philanthropy companies to donate to improving the this commitment by movement, recognised 1% of product,
Slide 32: Investor communication
Investor communication For personal use only Weekly emails Half yearly Monthly NTA Half & full year including market national investor announcement financial results update presentations & investment update Website Media Industry Independent wamfunds.com.au conferences research 32
Slide 33: For personal use only
For personal use only Investor Presentation April 2016