INVESTMENT UPDATE

July 2015

Cadence Capital Limited has had a good start to the new financial year returning a positive gross performance of 6.78% during the month of July compared to an increase in the All Ordinaries Accumulation Index of 4.23% and an increase in the Small Ordinaries Accumulation Index of 1.56%.

As at the 31st July 2015 the fund was holding 5% cash (95% invested).

Fund NTA

CDM Options – expiring 31st August 2015

Cadence Capital Limited Options (ASX Code: CDMO) with a strike price of $1.43 expire on 31st August 2015.

All options exercised will be entitled to the anticipated 5.0 cents per share fully franked full year dividend and the 1.0 cents per share fully franked special dividend announced on the 22nd July 2015. This year’s dividends will equate to a 7.6% fully franked yield (10.9% when grossed up for franking credits) based on the CDM share price as at month end close.

Cadence Capital Limited Option Holders can either: exercise their options; sell their options; or let their options expire worthless. New Option Exercise Forms were sent to all option holders last week. For further information on how to exercise your CDM Options visit www.cadencecapital.com.au/cdmo

The last date for payment to exercise your Options is 5.00pm AEST on 31st August 2015. CDMO will cease being quoted on the ASX at the close of trading on 24th August 2015.

The Chairman Karl Siegling has announced that he intends to exercise his options.

Fund Performance

* 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

** Anticipated 5.0 cents per share fully franked full year dividend and the 1.0 cents per share fully franked special dividend announced on the 22nd July 2015

Historic Portfolio Exposure

Portfolio Sector Analysis

Top Portfolio Positions

Recent News Articles

The Eureka Report featured Cadence Capitals winning approach in its new LIC research series.

Cuffelinks Newsletter published an article by Karl Siegling on Market psychology, emotions .. and more emotions.

ASX Investor Update published an article in its July Newsletter by Karl Siegling on Divestments – benefiting from a spin-off.

Cadence Capital was quoted in the AFR during July – Macquarie confident on Esanda dealer finance sale and Perpetual, Regal take a sniff of Pepper Group.

Karl Siegling was interviewed for the Commsec Executive Series. View the video interview here.

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

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.