For the month of March 2016 Cadence Capital Limited returned a negative gross performance of 0.61% compared to an increase in the All Ordinaries Accumulation Index of 4.74%. Over the past 12 months Cadence Capital Limited has returned a negative gross performance of 11.11% compared to a decrease in the All Ordinaries Accumulation Index of 8.05%.
The market remains volatile, however the market has managed to recover some of its losses for the year. Breaking the market up into some of the underlying trends, we are seeing a continued recovery in energy prices. Similarly we are seeing a reversal in the trend for a number of commodities, in particular iron ore. Other commodities have also shown early signs of recovery. Banks and diversified financials whilst volatile have shown tentative signs of stabilising. The Australian dollar continues to track higher as well, firmly reversing the longer term trend which has seen the Australian dollar fall from $1.08 to $0.68 against the US dollar before recovering to current levels around $0.77. As always, the Fund continues to scale into and out of trends which since the start of the year have seen us reduce short positions in commodities and energy, reduce overall exposure to banks and financials and reduce our overseas currency exposure. The reversal in a number of key trends, combined with volatility, tends to affect the short term performance of a fund that invests in underlying trends. We know in the medium and longer term however that trends re-emerge and should, over time, lead to outperformance against the broader market.
On 16th February 2016, the Company declared a 5.0 cent fully franked interim dividend to be paid on 12 May 2016. The Ex-Date for this dividend is 27 April 2016 and the Record Date is 28 April 2016. CDM shareholders are able to participate in the Dividend Re-Investment Plan (“DRP”) at a 3% discount. The DRP Record Date is 2 May 2016.
As at the 31st March 2016 the fund was holding 36% cash (64% invested).
* Before Management and Performance Fees
**These numbers include the franking value of the substantial dividend from its RHG holding received in May 2011.
CDM Share Price and Option Returns plus Dividends & Franking
* CDM 1 year figures reflect the share price move from a premium to a discount to NTA
Fully Franked Dividends Declared Since Listing
* Off market equal access buy back
Historic Portfolio Exposure
Portfolio Sector Analysis
Top Portfolio Positions
Recent News Articles
Karl Siegling will deliver a presentation about investing internationally at the Australian Shareholders Association Grow Your Portfolio Conference. The conference will be held in Sydney from the 16th to the 18th of May 2016. You can find more information on the ASA website.
Karl Siegling’s article Market psychology and emotions in action, which uses Macquarie Group Limited (ASX: MQG) as a ‘live’ example of market psychology in action, was featured in the Livewire newsletter.
Simon Bonouvrie shared his views on which companies are benefitting from emerging trends in Livewire’s Buy Hold Sell video series.
We’ve added reviews to our 52 Books You Should Read Before Buying Your Next Stock section, including Masters of The Market by Geoff Wilson, Anthony Hughes and Matthew Kidman as well as Valuation: Measuring and Managing the Value of Companies by McKinsey & Company Inc.
To view all previous Cadence webcasts and press articles, please visit the Media Section of our Website.
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.