CADENCE CAPITAL LIMITED — Earnings Release 2016

Aug 30, 2016

==> picture [541 x 103] intentionally omitted <==

Cadence Capital Limited (ASX: CDM) Full-Year 2016 Results

Sydney, 31[st] August 2016: Cadence Capital Limited (ASX: CDM) today announced its results for the full-year ended 30 June 2016 and declared a 4.0 cent fully-franked final dividend. This brings dividends declared for the year to 9.0 cents.

Final dividend declared:

• 4.0c fully-franked final dividend payable on the 27th October 2016,

• Yield of 7.1% fully-franked (10.1% when grossed up for franking credits)

As announced in the June 2016 newsletter, the fund performance was negative over the past financial year, and this has led to a net loss after tax for the period of $30.9 million.

Karl Siegling, Chairman, said “Over the past few years our portfolio has benefitted from falling resource prices, a falling Australian dollar and the strength of diversified financial services companies on the back of falling interest rates. During the last half of the 2016 financial year each of these trends has reversed and our portfolio has underperformed. We have communicated extensively on these trends and stocks.”

Karl Siegling continued, “July has seen a recovery in equity markets and in particular a change in sentiment away from ‘panic’ in relation to the ‘Brexit’ vote. This recovery has been assisted in Australia by a cut in interest rates to all time record low cash rates of 1.5%. Approximately 40% of the developed world currently has negative interest rates. Our portfolio has benefitted from these developments in July and continues to do so in August. In particular diversified financial services companies have started to recover and the upward trend for many resource based companies has continued. The Australian dollar continues to rise, despite interest rate cuts, with interest rates in Australia being one of the highest in the developed world.”

Fully-franked Final Dividend

The Board is pleased to announce a 4.0 cent fully-franked final dividend. The Ex-Date for the dividend is the 18[th] October 2016. This brings dividends declared for the year to 9.0 cents and equates to a 7.1% annual fully franked yield, or a 10.1% gross yield (grossed up for franking credits) based on the CDM share price at the time of this announcement of $1.275. The payment date for the final dividend is the 27[th] October 2016.

Cadence Capital Ltd | ABN 17 112 870 096 | Level 11/131 Macquarie St Sydney NSW 2000 www.cadencecapital.com.au | info@cadencecapital.com.au | T (02) 8298 2444 | F (02) 8298 2499

==> picture [541 x 103] intentionally omitted <==

Karl Siegling, Chairman, said “Given the record low interest rate environment in Australia, we are pleased that the Company has once again delivered a healthy fully franked yield. Cadence will be providing current investors the ability to participate in its Dividend Re-Investment Plan (“DRP”) at a 3% discount.”

Fund Outlook

Karl Siegling, Chairman, continued, “The volatility in share prices in this calendar year has been high, but over time trends re-emerge, and as always, present new investment opportunities. In July and August we have seen the first tentative signs of recovery in markets and uncertainty has eased. Cadence continues to enter new positions in new emerging trends, and stocks, following the Cadence Investment Process, which over time has proven to outperform the market. As the largest shareholder in the Fund the negative performance, and the underperformance against the All Ordinaries Accumulation Index, has not been pleasant. We remain committed to outperforming the All Ordinaries Accumulation Index and to producing longer term risk adjusted returns in excess of what the broader equity market provides.”

Karl Siegling Chairman, Cadence Capital Limited

Further information: Michelle Morgan Cadence Capital Limited Telephone: +61 2 8298 2402 Email: michellem@cadencecapital.com.au Web: www.cadencecapital.com.au

Cadence Capital Ltd | ABN 17 112 870 096 | Level 11/131 Macquarie St Sydney NSW 2000 www.cadencecapital.com.au | info@cadencecapital.com.au | T (02) 8298 2444 | F (02) 8298 2499