Westoz Investment Company (WIC)

Shares / Stock Code

WIC

Stock Exchange / Sharemarket

ax

Westoz Investment Company (WIC) was established in May 2005 with the aim of providing investors with an exposure to a portfolio of assets that are intended to show consistent positive returns. The Company has a stated policy to pay out a minimum of 50% of realized after tax profits to shareholders by way of dividends. The portfolio of assets will be managed by Westoz Funds Management Pty Ltd, a 100% owned subsidiary of Euroz Limited. Investors can trade Westoz Investment Company shares on the Australian Stock Exchange (ASX). WIC was listed on the Australian stock market in 16 September, 2009.

The investment mandate is to identify undervalued companies listed on the Australian Stock Exchange and to invest to produce a positive return. Because of the geographic location of the manager, it is anticipated that the majority of situations identified will have a connection to Western Australia and will have a market capitalisation of less than $1 billion

Westoz’s investment philosophy is based on the premise that financial markets and individual securities can and do deviate away from fair value. By detailed analysis of a range of valuation parameters, active management of a portfolio of equities can be used to generate an acceptable level of absolute return over a range of time frames. The investment strategy is based on the medium to long-term investment of funds and is consequently not suitable where large non-investment cash flows occur on a regular basis.

Due to the relative levels of research coverage by the market, Westoz believes that companies outside of the Top 100 will experience greater deviation from fair value. It also considers that, given its geographic location and range of contacts, a greater number of suitable investments will have exposure to the Western Australian economy as it has a comparative advantage in coverage of these stocks due to its location.

Westoz will mainly invest in Listed Securities. From time to time, a portion of the Portfolio may be held in short term cash deposits. Derivatives may be used where considered appropriate. The Manager will use the research recommendations provided by Euroz Securities as a primary screen to identify suitable investment opportunities. Due to the geographic location of its research team, the majority of stocks covered have a presence in Western Australia.

A range of parameters are used to assess value, but a key input to the analysis is the expected growth potential of the company.The recommendations of Euroz Securities are then subject to review by the Westoz team. This involves an internal proprietary analysis of the company. Westoz will also select stocks for its own analysis outside of the Euroz Securities portfolio.

After completing the above analysis, a set of stock recommendations will be presented to the Manager’s Investment Committee. The Investment Committee will review the recommendations and put them in the context of the overall equity environment. It will then review the Company’s current Portfolio in light of the information presented to it and adjust holdings in the Portfolio to ensure the targeted performance is achieved.

The Investment Committee can also use a variety of instruments to achieve its performance objectives. Where they are allowed, short positions may be held where a compelling reason exists. Derivatives may also be used to generate additional income in the Portfolio or to protect the Portfolio from market downturns.