CADENCE CAPITAL LIMITED — Net Asset Value 2016

Sep 8, 2016

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Cadence Capital Limited (ASX: CDM) Investment Update and NTA Report August 2016

Please click on the link below to view the August 2016 Investment Update and NTA Report, or view the PDF attached.

View the Cadence Capital Limited August 2016 Newsletter

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: info@cadencecapital.com.au

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INVESTMENT UPDATE

AUGUST 2016

For the month of August 2016 Cadence Capital Limited returned a positive gross performance of 2.34% outperforming the All Ordinaries Accumulation Index by 3.67%.

During the month the Company announced a 4.0 cent fully-franked final dividend. The Ex-Date for the dividend is the 18th 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 the announcement of $1.275. The payment date for the final dividend is the 27th October 2016. Shareholders are able to participate in the Dividend Re-Investment Plan (“DRP”) at a 3% discount. The DRP Record Date is 21[st] October 2016.

As at the 31[st] August 2016 the fund was holding 24% cash (76% invested).

Fund NTA

Net Tangible Assets as at 31st August 2016	Amount ($)
Pre Tax NTA	$1.163
Post Tax NTA	$1.244
Shareprice(ASX Code: CDM)	$1.270

Fund Performance

Performance* to 31st August 2016	CDM**	All Ords	Outperformance
1 Month	2.34%	-1.33%	+3.67%
1 Year	-5.39%	10.72%	-16.11%
3 Years	19.40%	22.92%	-3.52%
5 Years	53.42%	57.59%	-4.17%
8 Years	197.11%	50.37%	+146.74%
10 Years	259.83%	67.03%	+192.80%
Since Inception (10.9 years)	382.93%	91.68%	+291.25%
Since Inception Annualised(10.9years)	15.52%	6.19%	+9.33%

• 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 info@cadencecapital.com.au Register to receive our FREE newsletter at www.cadencecapital.com.au/register-for-free-newsletter

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CDM Share Price and Option Returns plus Dividends & Franking

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58.5%
20.8%
114.6%
4.9% 55.0%
1.4%
10.6%
3.5% 22.9%
10.7% 9.4%
-3.3%
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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	2.2c*	-	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	1.0c	11.0c	15.7c
2016	5.0c	4.0c		9.0c	12.9c
TOTAL	33.5c	34.2c	11.5c	79.2c	112.3c

• Off market equal access buy back

For more information contact Cadence Capital Limited on 02 8298 2444 or email info@cadencecapital.com.au Register to receive our FREE newsletter at www.cadencecapital.com.au/register-for-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	24.43%		24.43%
Communications	11.21%		11.21%
Software & Services	8.15%		8.15%
Financial	6.97%		6.97%
Consumer, Non-cyclical	6.46%		6.46%
Consumer Services	5.00%		5.00%
Banks	4.86%		4.86%
Technology	4.28%	0.32%	3.96%
Consumer, Cyclical	2.78%		2.78%
Basic Materials	3.04%	0.35%	2.69%
Industrial	1.58%		1.58%
Real Estate	0.53%		0.53%
Materials	0.11%	1.15%	-1.05%
Energy	0.22%	1.99%	-1.76%
Exposure	79.62%	3.81%	75.81%
Cash on Hand			24.19%

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

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Top Portfolio Positions

Code	Position	Direction	Currency	Holding
MQG	Macquarie Group Ltd	Long	AUD	14.9%
MLB	Melbourne IT Ltd	Long	AUD	8.2%
HGG	Henderson Group Plc	Long	AUD	7.1%
RFG	Retail Food Group	Long	AUD	5.0%
9984 JP	Softbank Group Corp	Long	AUD	3.7%
5930 KS	Samsung Electronics Co Ltd	Long	USD	3.4%
FB US	Facebook Inc	Long	AUD	3.2%
GOOG US	Alphabet Inc	Long	AUD	2.8%
AIG US	American International Group	Long	AUD	2.4%
ANZ	Australia and New Zealand banking Group	Long	AUD	2.1%
WPL	Woodside Petroleum Ltd	Short	AUD	2.0%
SHV	Select Harvest Ltd	Long	AUD	1.9%
IGO	Independence Group NL	Long	AUD	1.9%
IPH	IPH Ltd	Long	AUD	1.8%
MND	Monadelphous Group Ltd	Long	AUD	1.6%
NAB	National Australia Bank Ltd	Long	AUD	1.5%
TPM	TPG Telecom Ltd	Long	AUD	1.5%
MA US	Mastercard Inc	Long	AUD	1.5%
ECX	Eclipx Group Ltd	Long	AUD	1.4%
FXL	Flexigroup Ltd	Long	AUD	1.3%
Top Portfolio Holdings Gross Exposure				68.99%

Recent News Articles

Karl Siegling’s article titled “Winners If The Australian Dollar Falls” was featured on the ASX August 2016 Newsletter and the Livewire Markets daily newsletter. We encourage you to read the article to learn more about Karl's views on the topic.

We have published new book reviews including Outliers by Malcolm Gladwell, Master CEOs: Insights From Australia’s Leading CEOs by Matthew Kidman and Reframing by Richard Bandler which are available on the 52 Books You Should Read Before Buying Your Next Stocksection of our website. The Cadence team shares links to interesting articles which you can find in the Interesting Linkssection.

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

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

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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 info@cadencecapital.com.au Register to receive our FREE newsletter at www.cadencecapital.com.au/register-for-free-newsletter