WAM Active Ltd. · ASX:WAA
WAM Active — Investor Presentation (November 2013)
28 slides from WAM Active's investor presentation, Nov 20, 2013
Slide 1: WAM Active Limited Investor Presentation
WAM Active Limited For personal use only Investor Presentation Sydney, November 2013
Slide 2: Agenda
Agenda For personal use only • Recent Highlights • Dividend Growth • Positive performance • Capital Management • Investment Portfolio • Market Overview and Outlook • About Wilson Asset Management • Investor Communications • Wilson Asset Management in the Community 2
Slide 3: Recent Highlights
Recent Highlights For personal use only +5.6% 7.7% +25% Growth in full year Fully franked Investment Portfolio dividend to 9.5 cents per dividend yield* performance** share fully franked 41% 69% 62% Increase in Total Increase in Increase in shareholders Shareholder Return** Shareholders’ Equity** to
Slide 4: Dividend Growth
Dividend Growth For personal use only • FY2013 fully franked dividend of 9.5 cents per share, up 5.6% • Annualised FY2013 fully franked dividend yield 7.7% • Capacity to pay future dividends • Dividend Reinvestment Plan (DRP) operated at 2.5% discount • Board committed to delivering a regular income
Slide 5: Dividend Growth: dividends since inception
Dividend Growth For personal use only WAM Active dividends since inception Cents per share 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2008/09 2009/10 2010/11 2011/12 2012/13 Fully franked dividends 5
Slide 6: Positive Performance
Positive Performance For personal use only Since Performance at Fin 3 Yrs 5 Yrs Inception 31 October 2013 6 Mths YTD 1 Yr % pa % pa % pa WAA Investment 10.9% 15.9% 25.3% 14.1% 18.6% 14.1% Portfolio* S&P/ASX All Ordinaries 7.2% 15.1% 24.7% 9.3% 11.1% 1.5% Accumulation Index Outperformance +3.7% +0.8%
Slide 7: Positive Performance
Positive Performance For personal use only Index re-based 100 80 60 40 20 0 -20 -40 -60 WAA Investment Portfolio before all expenses, fees & taxes S&P/ASX All Ordinaries Accumulation Index UBS Bank Bill Index 7
Slide 8: Capital Management
Capital Management For personal use only • 88% of Options exercised to date - raising $16m • Last day to exercise options: 12 December 2013 • Last day to trade options: 5 December 2013 (ASX: WAAO) • Strategy to grow WAM Active gross assets to $100m (currently $38m) • Shareholder benefits of increase
Slide 9: Investment Portfolio
For personal use only Investment Portfolio
Slide 10: Top Holdings
Top 10 Holdings* For personal use only ASX Code Company FKP FKP Property Group CLO Clough Limited GNC Graincorp Limited CYA Century Australia Investments Limited HIL Hills Holdings Limited WIC Westoz Investment Company Limited IPE ING Private Equity Access Limited ELI Emerging Leaders Investments Li
Slide 11: Top Contributors and Detractors
Top Contributors and Detractors* For personal use only Contributors % Detractors % HIL Hills Holdings Ltd 13.1 MMS McMillan Shakespeare Ltd -6.3 Warrnambool Cheese & WCB 7.2 BSL BlueScope Steel Ltd -1.1 Butter Factory Co FKP FKP Property Group 6.7 TWR Tower Ltd -1.1 *FY2014 11
Slide 12: Investee Company: Graincorp Limited (GNC)
Investee Company For personal use only Graincorp Limited (GNC) Overview • Australian grains handling and logistics business Background • Currently subject to takeover offer by American Archer Daniels Midland Company (ADM) and subject to Government approval • Investment provides average annualised re
Slide 13: Investee Company: Hills Holdings Limited (HIL)
Investee Company For personal use only Hills Holdings Limited (HIL) Overview • Manufacturer of industrial products and provider of electronics, communications and lifestyle products and solutions Background • HIL was trading at a discount to NTA. In 1Q2012 new CEO appointed and turnaround strategy a
Slide 14: Market Overview and Outlook
For personal use only Market Overview and Outlook
Slide 15: Current Market Themes
Current Market Themes For personal use only Employment Strong housing participation rate market falling Tech company Continued US renaissance economic recovery Small caps New government underperforming providing due to weak companies certainty resource stocks 15
Slide 16: Market Outlook
Market Outlook For personal use only P/E multiples M&A activity to Strong IPO activity expanding - continue in 2014 earnings weak Interest rates to remain low by Australian dollar QE tapering in historical to weaken early 2014 standards
Slide 17: Strong Housing Market
Strong Housing Market For personal use only 17
Slide 18: P/E Multiples Expanding
P/E Multiples Expanding For personal use only The S&P/ASX Small Industrials Source: Macquarie Securities Group 18
Slide 19: About Wilson Asset Management
For personal use only About Wilson Asset Management
Slide 20: Experienced Team
Experienced Team For personal use only Geoff Wilson Martin Hickson B Sc GMQ FAICD FFinsia B Bus B Comp Chairman / Senior Equity Analyst / Portfolio Manager Dealer Kate Thorley Matthew Haupt B Com CPA Grad Dip ACG CFA B Com Grad Dip App Fin Chief Executive Officer / Equity Analyst Company Secretary C
Slide 21: Investment Approach
Investment Approach For personal use only Research Research Driven Market Driven Investment Strategy & Market Investment Strategy Driven Identifying Exploiting market undervalued growth mis-pricing companies opportunities 21
Slide 22: Our LICs
Our LICs For personal use only Gross assets* $622.2m $138.4m $37.7m Share price* $1.88 $1.175 $1.24 Pre tax NTA* $1.83 $1.11 $1.12 Growth in dividends 9.1% 7.7% 5.6% Fully Franked 6.4% 6.0% 7.7% Dividend Yield* *As at 31 October 2013 22
Slide 23: Investor Communications
For personal use only Investor Communications
Slide 24: Investor communication
Investor communication For personal use only Weekly emails Half yearly Half yearly Half & full year including market national investor investor financial results update presentations newsletters Monthly NTA Website Media Industry announcement wamfunds.com.au conferences & investment update 24
Slide 25: Wilson Asset Management in the Community
For personal use only Wilson Asset Management in the Community
Slide 26: Community Investment
Community Investment For personal use only All donations are made by Wilson Asset Management (the investment manager) and/or its staff, not the listed entities.26
Slide 27: 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
Slide 28: WAM Active Limited
WAM Active Limited For personal use only Investor Presentation Sydney, November 2013