INVESTMENT UPDATE
July 2021
INVESTMENT UPDATE
July 2021

Cadence Capital Limited returned a gross negative performance of 0.6% in July, compared to the All Ordinaries Accumulation Index which was up 1.3% for the month. The largest detractors from performance during the month were Cettire, Maas Group Holdings, Pinterest and Resimac Group. The top contributors to performance were Life360, Alphabet, Appen, and Whitehaven Coal.

On the 10 August the Company announced its full year results to the ASX, announcing a record full year profit before tax of $106.1m and a record full year profit after tax of $75.0m. It also declared a 3.0 cents fully franked final dividend, which is a 50% increase on the 2020 final dividend. This brings the 2021 fully franked full year dividend up to 5.0 cents per share equating to a 4.5% annual fully franked yield, or an 6.4% gross yield (grossed up for franking credits) based on CDM’s closing share price of $1.12 on the date of the announcement. The Ex-Date for the dividend is the 18th October 2021. The payment date for the dividend is the 29th October 2021. The Dividend Re-Investment Plan (“DRP”) is in operation for the final dividend. There will be no DRP discount applied.

In the coming weeks we will be releasing the June 2021 year end audiocast which will discuss the Company’s year end results, portfolio composition, some current fund holdings, DeepGreen Metals and the outlook for the rest of the year.

Fund NTA

* NTA’s do not include the accretion of the DeepGreen Metals transaction announced on 5th March 2021

Fund Performance

* 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 20 Portfolio Positions

Portfolio Market Capitalisation Analysis

Recent News

In late June DeepGreen Metals shareholders approved the merger of DeepGreen and Sustainable Opportunities Acquisition Corporation (SOAC). The British Columbia Supreme Court has also approved the plan of arrangement between DeepGreen and SOAC. The merger needs to be approved by SOAC’s shareholders and needs to satisfy other customary closing conditions. The combined entity will be renamed The Metals Company and is expected to begin trading on the NASDAQ under the ticker symbol TMC. This is expected to occur in this current quarter.

In May the Company released its March 2021 Quarterly Webcast. In this webcast, Karl Siegling firstly provided an update on the Company’s performance, upcoming dividend payment and CDM’s discount to NTA. Jackson Aldridge and Charlie Gray then discussed the Company’s current investment themes and positioning. Karl Siegling finished with an update on DeepGreen Metals and the outlook for 2021.

We encourage you to visit our 52 books you should read before buying your next stock page on our website. We have compiled a list of books/ documentaries that have influenced our investment style or helped provide insight into the Cadence investment process. To view all previous Cadence webcasts and press articles, please visit the Media Section of the website.

10 Books To Read Before Buying Your Next Stock

10 Books To Read Before Buying Your Next Stock

Funds management involves a lot of synthesis of information and reading. Over the years we all end up reading many investment books and refer to them from time to time.

The team at Cadence has compiled a list of books that have influenced our investment style, or helped provide insight into the investment process.

Whilst not an exhaustive list, the 10 titles contained in this eBook provide a good starting point for any interested investor.

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