WAM Research Ltd. · ASX:WAX
WAM Research — Investor Presentation (May 2011)
27 slides from WAM Research's investor presentation, May 19, 2011
Slide 1: WAM Research Limited (WAX) Investor Presentation May 2011
WAM Research Limited (WAX) Investor Presentation May 2011 For personal use only 1
Slide 2: Small Cap Value
Small Cap Value For personal use only *Source – The New York Times 2
Slide 3: Mid to Small Cap Sector Benefits
Mid to Small Cap Sector Benefits For personal use only • Small cap value has outperformed all other sectors* • Under researched – the market valuation is inefficient • Access to management - ability to build strong relationships • Life cycle of the business – ability to grow at a faster rate than la
Slide 4: LIC Structure Benefits
LIC Structure Benefits For personal use only Listed Investment Company’s are very attractive investment vehicles • Studies show LICs outperform managed funds* • Closed pool of capital – never forced seller or buyer • Provide consistent flow of fully franked dividends • Lower MER compared to managed
Slide 5: Our Experienced Team
Our Experienced Team Geoff Wilson - Chairman and Portfolio Manager For personal use only • • Chris Stott - CIO and Portfolio Manager, previously Head of Research • Kate Thorley - CEO of Wilson Asset Management. Kate was previously our CFO and remains Company Secretary for WAM, WAX and WAA. • Matthew
Slide 6: Investment Process
Investment Process “Research Driven” For personal use only Identify Company Undertake Detailed Research Visit with Management – 700+ companies p.a. Rank the Company (Rating Template) Catalyst identified or occurs Buy shares 6
Slide 7: Business Model
Business Model For personal use only Small to medium Listed Company Investment focus LIC + Experienced Structure team benefits Investment + Flexible + Tight cost Process Mandate control Superior long term = performance record 7
Slide 8: Our Funds
Our Funds For personal use only WAM Capital (WAM) WAM Active WAM (WAA) Research (WAX) Market Research Driven Driven 8
Slide 9: Performance
Performance Financial Year to Date to 30 April 2011 For personal use only Gross Portfolio 22.4% Pre-tax NTA per share growth plus dividends 18.5% Share price growth plus dividends 32.7% 9
Slide 10: Performance to April 2011
Performance to 30 April 2011 For personal use only Annualised WAM S&P/ASX 300 S&P/ASX Small Performance Research Industrials Industrials (WAX)* Accum. Accum. Index Index 1 year +12.9% +0.3% +4.9% 3 years +5.2% -1.0% -4.2% 5 years +2.6% +0.3% -2.3% Since inception +5.1% +7.4% +6.3% * The change in th
Slide 11: Dividends
Dividends For personal use only cents per share 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 11
Slide 12: Dividends
Dividends For personal use only • The Board is committed to paying an increasing stream of fully franked dividends • Government reform in June 2010 has changed the way dividends are paid • Dividends paid if the company is solvent • WAM Research has franking credits which allows it to pay 0.67 cents
Slide 13: Top Stocks
Top 15 Stocks For personal use only As at 30 June 2010 Vs As at 30 April 2011 % of Gross % of Gross Code Company Code Company Assets Assets NAB National Australia Bank Ltd 5% MMS McMillan Shakespeare Ltd 6% WBC Westpac Banking Corporation 5% NAB National Australian Bank Ltd* 5% Bendigo and Adelaide
Slide 14: Prime Media Group Ltd (PRT)
Prime Media Group Ltd (PRT) For personal use only • Operator of commercial television & radio stations • Distribution arrangement with Channel 7 until 2016 • New senior executive team • Launch of new digital channels • Discounting of inventory a concern 14
Slide 15: Corporate Travel Management Ltd (CTD)
Corporate Travel Management Ltd (CTD) For personal use only • Provider of travel management services to the corporate market • Forecasted FY12 PE 11.1x • Forecasted FY12 EPS Growth 34.8% • Recently upgraded IPO guidance • Strong momentum in SME corporate travel market 15
Slide 16: RHG Ltd Update
RHG Ltd Update For personal use only • We took action because we believed our capital was at risk • RHG action was the exception and not the rule • Our focus is to manage shareholders money • We actively pursued a change of the Board to protect the value of our investment, to keep the company listed
Slide 17: Market Outlook
For personal use only Market Outlook 17
Slide 18: S&P/ASX Small Industrials vs Small Resources
S&P/ASX Small Industrials vs Small Resources 12 months to 11 May 2011 For personal use only Source: IRESS 18
Slide 19: Australian Retail Sales
Australian Retail Sales For personal use only Source: Macquarie Research, May 2011 19
Slide 20: Private Sector Credit Growth
Private Sector Credit Growth For personal use only Source: Macquarie Research, May 2011 20
Slide 21: S&P/ASX Performance
S&P/ASX 200 Performance For personal use only Source: Goldman Sachs May 2011 21
Slide 22: Analyst EPS Forecasts
Analyst EPS Forecasts For personal use only Source: Macquarie Research, May 2011 22
Slide 23: Current Issues
Current Issues For personal use only ¾ Australian Dollar ¾ Carbon Tax ¾ Interest Rates ¾ Australian Housing Market ¾ China 23
Slide 24: Shareholder Communications
Shareholder Communications For personal use only ¾ New Website – WAMFunds.com.au ¾ Media – Sky Business, Switzer, CNBC, Newspapers ¾ Research Reports – Bell Potter, Patersons & Independent Research Reports ¾ Audio casts – Monthly ¾ Subscribe for weekly emails ¾ Bi-annual presentations 24
Slide 25: WAM in the Community
WAM in the Community Our people are passionate about the well‐being of our customers and the wider For personal use only community because helping others is part of our culture. As part of the WAM in the Community Program, we recently donated to the QLD Premier Disaster Relief Appeal. We have also p
Slide 26: WAM Research Limited (WAX)
WAM Research Limited (WAX) Investor Presentation May 2011 For personal use only 26
Slide 27: 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, Macquarie Res