Cadence Capital Limited returned a negative performance of 6.0% during the month of February 2020 outperforming the All Ordinaries Accumulation Index which was down 8.1% during the same period. For the month, the largest contributors to performance were Money3 Corporation, IDP Education and Imdex. The largest detractors from performance were ARQ Group, Santos Ltd, and Link Administration.
On the 19th February 2020 the Company announced its half year results and declared a 2.0 cents fully franked interim dividend. This 2.0c interim dividend equates to a 5.5% annual fully franked yield, or a 7.9% gross yield (grossed up for franking credits) based on the CDM share price on the day of the announcement. The Ex-Date for the interim dividend is the 29th April 2020 and the payment date is the 13th May 2020. The dividend re-investment plan (DRP) will not be in operation for the interim dividend as the Company’s shares are currently trading at a large discount to the underlying NTA per share of the Company.
The Company will be releasing its half year webcast in the coming weeks. This webcast will give shareholders an update on the fund’s performance, its positioning, its top positions and the outlook for the portfolio. The webcast will also discuss the initiatives being undertaken to close CDM’s discount to NTA, including the ongoing on-market buyback. The Company will be holding investor presentations in major cities around Australia. The details of these presentations will be announced as soon as they are finalised.
At 29th February 2020, the Company was 67.5% invested.
* Gross Performance: before Management and Performance Fees
Fully Franked Dividends Declared Since Listing
* Off market equal access buy back
Historic Portfolio Exposure
Portfolio Sector Analysis
Top Portfolio Position
At the AGM and Investor Briefing held in November, Chairman Karl Siegling firstly discusses the company’s performance over the past year and the opportunity which presents in the company’s shares trading at a discount to NTA. Independent director Jenelle Webster then discusses the corporate governance review that was undertaken during the year and the improvements that were made following the review. Lastly, Karl and portfolio managers Charlie Gray and Jackson Aldridge discuss a number of current portfolio positions as well as the outlook for 2020.
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