CADENCE CAPITAL LIMITED — Net Asset Value 2016

Aug 14, 2016

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

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

View the Cadence Capital Limited July 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

JULY 2016

For the month of July 2016 Cadence Capital Limited returned a positive gross performance of 4.30% compared to an increase in the All Ordinaries Accumulation Index of 6.29%.

July has seen a recovery in equity markets and in particular a change in sentiment away from ‘panic’ in relation to the ‘Brexit’ vote. Many world equity markets are actually recording all-time highs. 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. Examples of stocks with significant change in sentiment have been Macquarie Group (ASX code MQG) and Henderson Group (ASX code HGG).

As at the 31[st] July 2016 the fund was holding 16% cash (84% invested).

Fund NTA

Net Tangible Assets as at 31st July 2016	Amount ($)
Pre Tax NTA	$1.140
Post Tax NTA	$1.221
Shareprice(ASX Code: CDM)	$1.275

Fund Performance

Performance* to 31st July 2016	CDM**	All Ords	Outperformance
1 Month	4.30%	6.29%	-1.99%
1 Year	-14.23%	4.02%	-18.25%
3 Years	16.68%	27.80%	-11.12%
5 Years	52.00%	56.51%	-4.51%
8 Years	199.79%	58.52%	+141.27%
10 Years	261.11%	74.66%	+186.45%
Since Inception (10.8 years)	371.88%	94.25%	+277.63%
Since Inception Annualised(10.8years)	15.40%	6.37%	+9.03%

• 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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58.7%
20.9%
115.4%
5.1% 57.1%
10.8%
3.4% 1.4% 27.8%
11.3%
4.0%
-4.3%
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Fully Franked Dividends Declared Since Listing

					Gross
Calendar Year	Interim	Final	Special	Total	(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			5.0c	7.1c
TOTAL	33.5c	30.2c	11.5c	75.2c	106.5c

• 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	24.66%		24.66%
Communications	11.95%		11.95%
Consumer, Non-cyclical	11.54%		11.54%
Industrial	8.34%		8.34%
Software & Services	7.57%		7.57%
Financial	7.54%		7.54%
Banks	4.93%		4.93%
Consumer Services	4.10%		4.10%
Consumer, Cyclical	2.68%		2.68%
Technology	3.72%	1.58%	2.14%
Basic Materials	1.48%	0.39%	1.09%
Materials	0.11%	1.23%	-1.12%
Energy	0.30%	2.17%	-1.87%
Exposure	88.92%	5.38%	83.54%
Cash on Hand			16.46%

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	14.0%
MLB	Melbourne IT Ltd	Long	AUD	7.6%
HGG	Henderson Group Plc	Long	AUD	7.0%
AIO	Asciano Ltd	Long	AUD	6.6%
RFG	Retail Food Group	Long	AUD	4.1%
SHV	Select Harvest Ltd	Long	AUD	3.3%
FB US	Facebook Inc	Long	AUD	3.3%
9984 JP	Softbank Group Corp	Long	AUD	3.2%
GOOG US	Alphabet Inc	Long	AUD	2.9%
5930 KS	Samsung Electronics Co Ltd	Long	USD	2.7%
LUX IM	Luxottica Group SPA	Long	EUR	2.7%
IPH	IPH Ltd	Short	AUD	2.2%
AIG US	American International Group	Long	AUD	2.2%
MA US	Mastercard Inc	Long	AUD	2.2%
WPL	Woodside Petroleum Ltd	Short	AUD	2.2%
ANZ	Australia and New Zealand banking Group	Long	AUD	2.0%
MND	Monadelphous Group Ltd	Long	AUD	1.8%
GILD US	Gilead Sciences Inc	Long	AUD	1.6%
MYO	MYOB Group Ltd	Short	AUD	1.6%
TPM	TPG Telecom Ltd	Long	AUD	1.6%
Top Portfolio Holdings Gross Exposure				74.69%

Recent News Articles

Our latest Quarterly Webcast was released last month, and you can watch the full webcast on our website. We also released the stock-specific section of the webcast as a separate video titled Karl Siegling Discusses Top Portfolio Positions: MQG, MLB, AIO & HGG.

Following up on Karl Siegling’s article titled “Commodities: Has the trend changed?” which was published in May, Cadence portfolio manager Chris Garrard wrote an article focusing on two of our current commodity positions: Rio Tinto (RIO) and Woodside Petroleum (WPL). You can read the article here: Rio Tinto & Woodside Petroleum: Has the trend changed?.

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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Karl Siegling was quoted by the AFR in an article titled Macquarie Group's Nicholas Moore coy on Brexit impact, where he shares his views on Macquarie Group’s outlook for the year.

We’ve updated our 52 Books You Should Read Before Buying Your Next Stocklist with our latest book reviews including The Rise And Rise of Kerry Packer by Paul Barry, The Next Great Bubble Boom by Harry S. Dent Jr. and When Genius Failed by Roger Lowenstein. The Cadence team also shares links to interesting articles which you can find in the Interesting Links section.

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

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Download Our New Book For Free

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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