Cadence Capital Limited returned a gross positive performance of 1.1% in October, compared to the All Ordinaries Accumulation Index which was up 5.7% for the month. Year to date the fund is up 7.8%, outperforming the All Ordinaries Accumulation Index by 1.3%. The top contributors to performance during the month were Syrah Resources, Tietto Minerals, Stanmore Coal, AMP and Fortescue Metals Group. The largest detractors from performance were Terracom, AJ Lucas Group and Australian Pacific Coal.
The Australian market has performed poorly over the past six months as interest rates continued to rise. However, markets staged a strong recovery in October driven by large price increases in Financials (up 12%), Oil and Gas (up around 10%) and Real Estate (up around 9%). However, the thermal coal price fell significantly in October after a prolonged two-year rally. This affected Australian producers such as Whitehaven Coal, New Hope, Terracom and Stanmore to a lesser extent. These stocks have been major positive contributors to the fund’s performance over the past two years. We have reduced the size of coal positions in the portfolio and will continue to do so if the coal price and coal producers trend lower. Resource stocks performed well for the fund and were added to, whilst short positions also aided performance.
Fully Franked Year-End Dividend
During the month the Company paid its 4.0 cents per share fully franked year-end dividend bringing the full year dividend to 8.0 cents per share fully franked. This full year dividend of 8.0 cents per share fully franked equates to an 8.3% fully franked yield or a 11.9% gross yield (grossed up for franking credits) based on the September month end share price of $0.96 per share. After paying this dividend the Company still has around 25 cents per share of profits reserves to pay future dividends.
Upcoming AGM and Investor Briefing
We would like to remind you that we are holding our AGM and Investor Briefing at the Museum of Sydney, Warrane Theatre, at 2:00pm (AEDT) on Wednesday 16th November 2022. A dial-in facility is available for those investors that are not able to attend the AGM and Investor Briefing in person. The numbers to dial are as follows:
- Toll Free Australia – 1800 809 971
- Toll Free Australia Back Up – 1800 558 698
A webcast of the Investor Briefing will also be made available online sometime after the meeting. If you have any questions that you would like answered at the AGM please can you email them to email@example.com.
* 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
Karl Siegling has recently been interviewed on the following shows, all of which all can be watched or listened to:
- Alan Kohler Interviews Karl Siegling for Eureka Report (Click here to listen);
- James Whelan interviews Karl Siegling on the BIP show (Click here to listen); and
- Lelde Smits interviews Karl Siegling at TCN’s Emerging ASX Gems Investment Conference (Click here to watch).
In July the Company released its June 2022 Year end Audiocast. In this year-end audiocast, Karl Siegling firstly provides an update on the Company’s year-end performance, the 4.0c per share fully franked year-end dividend, the portfolio’s current composition and the increasing interest rate trend. Karl Siegling, Charlie Gray and Jackson Aldridge then discuss their long positions in Whitehaven Coal, New Hope and Resmed and their short positions in Graincorp and Textainer Group. Karl Siegling then finishes with an update on the outlook for 2023.
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.