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CADENCE CAPITAL LIMITED Net Asset Value 2015

Jul 7, 2015

64631_rns_2015-07-07_65ec6f6c-81f8-410b-84ee-45f522631d8a.pdf

Net Asset Value

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Cadence Capital Limited (ASX: CDM) Investment Update and NTA Report June 2015

Please click on the link below to view the June 2015 Investment Update and NTA Report, or view the PDF attached.

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Cadence Capital Ltd Pty Ltd ACN 112 870 096 Level 11, 131 Macquarie Street, Sydney NSW 2000 Australia Telephone +612 8298 2444, Facsimile +612 8298 2499 Web: www.cadencecapital.com.au Email: [email protected]

INVESTMENT UPDATE

JUNE 2015

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Cadence Capital Limited has had a good past financial year returning a positive gross performance of 11.42% outperforming the All Ordinaries Accumulation Index by 5.75% and the Small Ordinaries Accumulation Index by 10.98%. Cadence Capital Limited returned a negative gross performance of 2.15% during the month of June compared to a decrease in the All Ordinaries Accumulation Index of 5.40% and a decrease in the Small Ordinaries Accumulation Index of 7.77%.

Cadence Capital Limited continues to add to its offshore investments with 34% of the portfolio invested in global listed equities. We estimate a further 19% of the fund’s domestic investments earn income directly from offshore, creating a portfolio with approximately 53% offshore exposure. These offshore investments have performed very well over the past financial year returning approximately 4 times the returns of the funds local investments.

As at the 30[th] June 2015 the fund was holding 10% cash (90% invested).

Fund NTA

Net Tangible Assets as at 30th June 2015 Amount ($)
Pre Tax NTA* $1.401
Post Tax NTA* $1.406
Share price (ASX Code: CDM)* $1.380
Option price (ASX Code: CDMO)* $0.003

Fund Performance

Performance* to 30thJune 2015 CDM** AllOrds Outperformance
1 Month -2.15% -5.40% +3.25%
1 Year 11.42% 5.67% +5.75%
2 Years 30.27% 24.31% +5.96%
3 Years 59.14% 50.01% +9.13%
4 Years 67.87% 39.44% +28.43%
5 Years 205.54% 56.42% +149.12%
8 Years 159.83% 21.77% +138.06%
Since Inception (9.8 years) 415.22% 79.17% +336.05%
Since Inception Annualised(9.8 years) 18.31% 6.16% +12.15%
  • Before Management and Performance Fees

**These numbers include the franking value of the substantial dividend from its RHG holding received in May 2011.

For more information contact Cadence Capital Limited on 02 8298 2444 or email [email protected] Register to receive our FREE newsletter at www.cadencecapital.com.au/register-free-newsletter

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CDM Share Price and Option Returns plus Dividends & Franking

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49.0%
15.4%
114.6%
5.9% 17.0%
54.2% 50.0%
44.9%
1.4%
2.8%
5.7%
-2.3%
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* CDM 1 year figures reflect the share price move from a premium to a discount to NTA

Fully Franked Dividends Declared Since Listing

Calendar Year
Interim
Final Special Total Gross (Inc.
Franking)
2007 2.0c 2.0c 2.0c 6.0c 8.6c
2008 2.5c 2.2*c - 4.7c 5.8c
2009 - 2.0c - 2.0c 2.9c
2010 2.0c 2.0c - 4.0c 5.7c
2011 3.0c 3.0c 3.0c 9.0c 12.9c
2012 4.0c 4.0c 4.5c 12.5c 17.8c
2013 5.0c 5.0c 1.0c 11.0c 15.7c
2014 5.0c 5.0c - 10.0c 14.3c
2015 5.0c - - 5.0c 7.1c
TOTAL 28.5c 25.2c 10.5c 64.2c 90.8c
  • Off market equal access buy back

For more information contact Cadence Capital Limited on 02 8298 2444 or email [email protected] Register to receive our FREE newsletter at www.cadencecapital.com.au/register-free-newsletter

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Historic Portfolio Exposure

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160%
140%
120%
100%
80%
60%
40%
Long Exposure
20%
Short Exposure
0%
Net Exposure
-20%
-40%
-60%
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Portfolio Sector Analysis

Sector Long Short Net
Diversified Financials 21.29% 21.29%
Consumer, Non-cyclical 19.59% 19.59%
Banks 15.02% 15.02%
Financial 11.88% 11.88%
Consumer, Cyclical 6.73% 6.73%
Software & Services 5.29% 5.29%
Consumer Services 3.97% 3.97%
Telecommunication Services 3.35% 3.35%
Basic Materials 3.32% 1.05% 2.27%
Technology 2.56% 1.04% 1.52%
Energy 0.68% 0.68%
Communications 0.09% 0.09%
Materials 0.10% 2.14% -2.04%
Exposure 93.87% 4.22% 89.64%
Cash on Hand 10.36%

For more information contact Cadence Capital Limited on 02 8298 2444 or email [email protected] Register to receive our FREE newsletter at www.cadencecapital.com.au/register-free-newsletter

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Top Portfolio Positions

Code Position Direction Currency Holding
MQG Macquarie Group Limited Long AUD 12.4%
LUX IM Luxottica Group SPA Long EUR 6.7%
HGG Henderson Group Plc Long AUD 6.4%
GILD US Gilead Sciences Inc Long USD 6.2%
MA US Mastercard Inc Long USD 5.7%
MLB Melbourne IT Ltd Long AUD 5.3%
BOQ Bank of Queensland Ltd Long AUD 5.0%
NAB National Australia Bank Ltd Long AUD 4.3%
RFG Retail Food Group Long AUD 4.0%
ANZ Australia & New Zealand Banking Group Long AUD 3.5%
IIN IInet Limited Long AUD 3.4%
MNK US Mallinckrodt Plc. Long USD 3.2%
V US Visa Inc. Long USD 3.1%
CBA Commonwealth Bank of Australia Long AUD 2.3%
WBC Westpac Banking Corp. Long AUD 2.1%
RIO Rio Tinto Ltd Short AUD 2.1%
AIG US American International Group Long USD 2.1%
AGN US Allergan Plc. Long USD 2.0%
C US Citigroup Inc. Long USD 2.0%
HFR Highfield Resources Ltd Long AUD 1.7%
Top Portfolio Holdings Gross Exposure 83.35%

Recent News Articles

ASX ranks Cadence Capital Limited #1 Australian Equity LIC over 5 years in its latest ASX Funds Monthly Update.

Patersons Securities published its June 2015 Quarterly LIC Report which rates CDM as one of its ‘most attractive’ LIC opportunities.

Simon Bonouvrie and Chris Garrard feature in the latest Intelligent Investor report: Top Stock Picks from Australia’s best Fund Managers

Livewire Markets published an article by Simon Bonouvrie on Going Global with Gilead Sciences Inc. Simon also featured in two Livewire Markets video interviews on the Australian retail grocery sector and a Buy Hold Sell interview on ‘Big Cap’ stocks.

ShareCafe featured an article by Karl Siegling on 6 prosperous trends for 2015.

To view all previous Cadence webcasts and press articles, please visit the Media Section of our Website.

For more information contact Cadence Capital Limited on 02 8298 2444 or email [email protected] Register to receive our FREE newsletter at www.cadencecapital.com.au/register-free-newsletter

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CDM Options – expiring 31[st] August 2015

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Visit our website for further information on how to exercise your CDM Options: www.cadencecapital.com.au/cdmo

Download our FREE ‘Investing in 2015’ eBook

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Disclaimer

The information contained in this report has been prepared with all reasonable care by Cadence Asset Management Pty Ltd and is of a general nature only. It is provided for information purposes only and should not be construed as an offer or solicitation. Nothing contained in this document constitutes investment, legal, financial, business, tax or other advice. It should not be relied upon as the sole basis for making an investment decision, nor should a decision be made until the risks of the investment are fully understood. Cadence Asset Management Pty Ltd assumes no responsibilities for errors, inaccuracies or omissions in this summary. The information is provided without warranty of any kind. Past performance is not indicative of future performance. Investors may not get back the full amount originally invested.

For more information contact Cadence Capital Limited on 02 8298 2444 or email [email protected] Register to receive our FREE newsletter at www.cadencecapital.com.au/register-free-newsletter