Cadence Capital Limited returned a gross positive performance of 1.6% in September outperforming the All Ordinaries Accumulation Index by 8.0%. Year to date the fund is up 6.7%, outperforming the All Ordinaries Accumulation Index by 5.9%. The top contributors to performance during the month were Whitehaven Coal, New Hope, Terracom and Taiwan Semiconductor Manufacturing. The largest detractors from performance were Celsius Holdings and Gitlab Inc. As of 30 September 2022, the Company was 38% invested (62% cash and cash equivalents).
After the rally in equity markets during July and August, September saw indices roll back over and decline towards the June lows. The sell-off was broad-based and followed commentary from the US Federal Reserve indicating it was prepared to accept some pain for the economy to return inflation to its target range. The energy sector was again an outperformer and was the major driver behind the Fund’s positive performance during the month. High cash levels and the portfolio’s short positions also aided performance.
Fully Franked Year-End Dividend
In July the Company announced a 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 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.
The Ex-Date for the dividend is the 17 October 2022. The payment date for the dividend is the 28 October 2022. The dividend re-investment plan (DRP) will not be in operation for this final dividend as the Company’s shares are trading at a discount to the underlying NTA.
Register for upcoming Cadence Investor Presentations
If you have not done so already, we would like to remind you to register to join the Cadence Investment team to get an update on the Cadence funds, to discuss some of the current investment themes and fund positions and talk about the investment outlook for the year ahead.
- Brisbane: Monday 10 October 2022, 10.30am – 11.30am
- Melbourne: Tuesday 18 October 2022, 10.30am – 11.30am
- Perth: Wednesday 26th October 2022, 10.30am – 11.30am
- Adelaide: Friday 28th October 2022, 10.30am – 11.30am
- Sydney – CDM AGM: Wednesday 16th November 2022, 2.00pm – 4.00pm
Please click here to register to attend.
* 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
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, Newhope Coal and Resmed and their short positions in Graincorp and Textainer Group. Karl Siegling then finishes with an update on the outlook for 2023.
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