Westoz Investment Company Limited

The investment objective of the Company is to produce a consistent positive returns on its funds over the medium to long term, regardless of the general direction of the share market.

Investment Philosophy

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.

Due to the relative levels of research coverage by the market, Westoz also believes that companies outside of the Top 100 will experience greater deviation from fair value.

A medium to long-term investment horizon is required and large non-investment driven cash flows can adversley impact long term performance. Hence, a listed investment company structure is the most appropriate form of the investment vehicle.

Investment Strategy

Westoz has appointed the Manager to undertake the management of its investment portfolio in a manner consistent with its Investment Philisophy.

Westoz will mainly invest in listed securities. From time to time, a portion of the Portfolio may be held in short term cash deposits. Due to the geographic location of the Manager, it is anticpated that the majority of investments will have a connection to Western Australia. Derivatives may be used where considered appropriate.

The Manager will use a variety of sources to generate investment ideas. A range of parameters are used to assess value, but a key input to the analysis is the expected growth potential of the company. After completing the necesaary 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.

Risk Control

Performance of the Portfolio will be generated from investment in suitable stocks. However, diversification of holdings will be used to limit the risk where the actual performance of individual stocks does not meet expectations. Risk control features of the Portfolio will include:

No one stock will represent more than 20% of the total Portfolio Value at the time of acquisition.
No investment will represent more than a 20% stake in the issued securities of a company.
It is anticipated that the Portfolio will consist of between 10 and 25 stocks, although more or less may be held depending on the number of securities identified that are expected to meet the performance expectations.
Where suitable stocks can not be identified, the portfolio may invest in cash. Whilst unlikely over the medium term, the Portfolio may consist from time to time of significant cash deposits.
Any short positions will not represent more than 20% of the total Portfolio Value.
Leverage may be employed in the Portfolio, but total exposure will not exceed 120% of the Portfolio Value.
Any breach of these risk control measures will be reported to the Company by the Manager and the Company will determine the appropriate action to remedy the breach.

Permitted Investments

Subject to the conditions of the Australian Financial Services licence held by the Manager, the Manager may invest in the following types of investments:

Listed Securities and unlisted securities;
Rights to subscribe for or convert to securities (whether or not such rights are tradeable on a securities exchange);
Securities for the purpose of short selling;
Warrants or options to purchase any investment and warrants or options to sell any investment permitted under the Management Agreement;
Discount or purchase of bills of exchange, promissory notes or other negotiable instruments accepted, drawn or endorsed by any bank or by the Commonwealth of Australia, any State or Territory of Australia, or by any corporation of at least an investment grade credit rating granted by a recognised credit rating agency in Australia;
Deposits with any bank;
Debentures, unsecured notes, loan stock, bonds, promissory notes, certificates of deposit, interest bearing accounts, certificates of indebtedness issued by any bank or by the Commonwealth of Australia, any State or Territory of Australia, or any Australian government authority, or, if authorised by its Directors, a corporation of at least an investment grade credit rating granted by a recognised credit rating agency in Australia;
Units or other interest in cash management trusts; and;
Any other investment, or investment of a particular kind, approved by the Board in writing.

Mr Jay Hughes - Chairman

Mr Hughes commenced as a Director of the Company in 2005 and assumed the role of Non-Executive Chairman in October 2013.

Between 1986 and 2000, Mr Jay Hughes was employed by a Perth stockbroker that was part of a national and international group at the time. From 1994 he acted in the capacity of an Executive Director and before this as an Associate Director.

From 2000 until the present date, Mr Hughes has worked for Euroz Securities Limited and Euroz Limited and also acts in the capacity of Executive Director and Responsible Officer of both companies. During this time, Mr Hughes has been involved in the institutional sales department of the stockbroking business dealing predominantly with offshore funds. He is also heavily involved in many facets of the management and supervision of both companies.

Mr Hughes is also Non – Executive Chairman of Ozgrowth Limited.

Mr Hughes holds a Graduate Diploma in Applied Finance and Investment from the Securities Institute of Australia. He was recognised as an affiliate of ASX in December 2000 and was admitted in May 2004 as a Practitioner Member (Master Stockbroking) of the Stockbrokers and Financial Advisors Association.

Mr Hughes is also a member of the Manager’s Investment Committee.

Mr Terry Budge - Independent Director

Mr Budge is an Indepndent Director of the Company and serves on the Company’s Audit Committee. He has held this role since April 2005.

He is also a member of the Board of Advice for AON Risk Management Services Australia. Mr Budge holds a Bachelor of Economics from Monash University and is a Graduate of the Advanced Management Program from Harvard Business School.

He is also a Graduate and Fellow of the Australian Institute of Company Directors, a Senior Fellow of the Financial Services Institute of Australia and a Fellow of the Australian Institute of Management.

Mr Simon Joyner - Independent Director

Mr Simon Joyner is an Independent Non- Executive Director of the Company.

Mr Joyner has been involved in the West Australian financial services industry since 1985 and brings a broad range of experience to Westoz. Mr Joyner established Keysbrook Financial Services in 1997, one of Western Australia’s first independently owned financial services firms. In 2008 Keysbrook became a founding firm of what was to become the Shadforth Financial Group (“SFG”). SFG subsequently listed on the ASX and was purchased by IOOF in 2014.

More recently Mr Joyner established management consulting firm Aberfoyle Partners, assisting businesses across a range of industries but predominantly those associated with the financial services industry. Mr Joyner is the Chairman of Kidsafe WA and sits on the board of the Perth Symphony Orchestra.

Mr Joyner has a Bachelor of Commerce Degree from the University of Western Australia.

Mr Anthony Hewett - Company Secretary

Mr Hewett commenced as the Company Secretary of the Company in June 2017 and is the Group Company Secretary to Euroz Limited and its subsidiaries. he is also Company Secretary of Ozgrowth Limited.

Mr Hewett commenced his career in financial services in 2000 and has served as a Company Secretary since 2005 until present for a number of Western Australian based listed, unlisted, not-for-profit, and private organisations.

In addition to his company secretarial roles, over his 18 year career in the diversified financial services, and property sectors Mr Hewett has developed considerable experience in a variety of managerial, operational, and risk and compliance oriented roles.

Mr Hewett is a Chartered Secretary and holds a Master of Business Law (MBusLaw) from Curtin University, and a Graduate Diploma in Applied Corporate Governance (GradDipACG) from the Governance Institute of Australia. In addition, Mr Hewett also holds qualifications in Financial Services, Leadership, and Training.

Mr Hewett is a Fellow of the Institute of Chartered Secretaries and Administrators (FCSA), a Fellow of the Governance Institute of Australia (FGIA) and a Master Stockbroking, Stockbrokers and Financial Advisers Association of Australia (MSAFAA).

Westoz Investment Company Limited recognises the importance of dividend payments to its investors. It has a dividend policy in place whereby it intends to pay a consistent stream of dividends to shareholders. It will also provide periodic guidance as to the level of expected dividend payments.

The following table shows dividend payments made to date:

Ex Date	Date Paid	Dividend (cents)	Franking Level	DRP
3-Aug-2018	27-Aug-2018	3.0	100%	Yes, at $1.158
31-Jan-2018	20-Feb-2018	3.0	100%	Yes, at $1.142
7-Aug-2017	24-Aug-2017	3.0	100%	Yes, at $0.953
31-Jan-2017	20-Feb-2017	3.0	100%	Yes, at $1.005
8-Aug-2016	25-Aug-2016	3.0	100%	Yes, at $0.882
2-Feb-2016	19-Feb-2016	3.0	100%	Yes, at $0.7454
7-Aug-2015	27-Aug-2015	4.5	100%	Yes, at $0.881
6-Feb-2015	24-Feb-2015	4.5	100%	Yes, at $1.0146
7-Aug-2014	25-Aug-2014	4.5	100%	Yes, at $1.30
28-Jan-2014	17-Feb-2014	4.5	100%	No
2-Aug-2013	15-Aug-2013	6.0	100%	No
14-Jan 2013	01-Feb-2013	3.0	100%	No
2-Aug-2012	16-Aug-2012	3.0	100%	No
25-Jan-2012	15-Feb-2012	1.0	100%	No
3-Aug-2011	16-Aug-2011	8.0	100%	No
25-Jan-2011	15-Feb-2011	3.0	100%	No
3-Aug-2010	16-Aug-2010	7.5	100%	No
25-Jan-2010	15-Feb-2010	2.5	100%	No
3-Aug-2008	16-Aug-2008	10.0	100%	Yes, at $1.47
3-Aug-2007	16-Aug-2007	5.0	100%	Yes, at $1.26
3-Aug-2006	16-Aug-2006	5.0	100%	Yes, at $1.06

Our portfolio is managed by Westoz Funds Management Pty Ltd (AFSL 285607).

More detail on the manager is available here.

Annual reports for Westoz Investment Company Limited are available since inception in 2005.

You can view each years report using the following tabs:

2018 Annual Report
2017 Annual Report
2016 Annual Report
2015 Annual Report
2014 Annual Report
2013 Annual Report
2012 Annual Report
2011 Annual Report
2010 Annual Report
2009 Annual Report

The Board of the Company has in place a Corporate Governance Plan.

The Company uses the ASX Corporate Governance Principles of Good Corporate Governance and Best Practice Recommendations (Best Practice Recommendations) as a non-binding guide when determining its policy.

The Company will report any deviations from these best Practice Recommendations in its Corporate Governance Statement and the Appendix 4G released to the ASX.

Corporate Governance Statement
Corporate Governance Plan

A range of useful shareholder documents is available below.

If you require further assistance or cannot locate the document you are after, our share registry, Computershare Investor Services Pty Ltd (phone: 1300 749 533) may be of assistance.

Aug 2019 $1.06 Option Exercise form
Dividend Reinvestment Plan Details
Dividend Reinvestment Plan Form
Westoz Initial Prospectus