Cadence Opportunities Fund returned a gross performance of 1.9% in July, compared to the All Ordinaries Accumulation Index which was up 6.3% for the month. Over the past year the fund is up 4.4%, outperforming the All Ordinaries Accumulation Index by 7.2%. The top contributors to performance during the month were Whitehaven Coal, Terracom, New Hope Corp, Melbana Energy and AMP. The largest detractors from performance were Alibaba Group and BHP Group.
Markets recovered in July after the sell-off in June, with some of the worst performing sectors in the first half of calendar 2022 leading the rally. The fund increased its net exposure during the month as it scaled back into existing positions which resumed trend as well as scaling out of several short positions. The fund has also invested in several new long positions. As of 31 July 2022, the Company was 62% invested (38% cash).
Fully Franked Year-End Dividend
On the 15 July the Company announced a 7.5 cents per share fully franked year-end dividend, bringing the full year dividend to 15.0 cents per share fully franked. This is a 25% increase on the previous year’s ordinary dividends of 12.0 cents per share reflecting the strong performance of the company over the past three years and the build-up of profit reserves.
This full year dividend of 15.0 cents per share fully franked equates to an 6.3% fully franked yield or an 8.9% gross yield (grossed up for franking credits) based on the share price of $2.40 per share on the date of the announcement. After paying this dividend the Company still has 44 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”) is in operation for the year-end dividend. The issue price will be at a 5% discount to the weighted average of the prevailing share price over the relevant DRP pricing period. If you are not registered for the DRP and you would like to participate, please contact Boardroom on 1300 737 760.
Earlier this month the Company released its June 2022 Year end Audiocast. In this year-end audiocast, Karl Siegling firstly provides an update on the Company’s performance, the 7.5c fully franked year-end dividend, the current portfolio composition and the increasing interest rate trend. Karl Siegling, Charlie Gray and Jackson Aldridge then discuss some of the funds core investments (WHC, NHC, PYPL US, AMP) and some of the funds trading positions (SMR, BCB, TIE, DHG, PNI, NAN and CCX). Karl Siegling then finishes with an update on the outlook for 2023.
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