Fund Performance
Cadence Opportunities Fund returned a gross performance of -1.1% in May, compared to the All Ordinaries Accumulation Index which was up 1.2% for the month. CDO has delivered strong performance in the 2026 financial year, up 37.5% for the past 11 months, outperforming the All Ordinaries Accumulation Index by 32.2%. CDO is one of Australia’s top‑performing investment companies returning 24.0% per annum since its inception 7 years ago. These returns exceed the All Ordinaries Accumulation Index by approximately 2.3 times, with yields tracking at double the Index.
May’s top contributors included Samsung Electronics, Echo IQ, Metals X and Endeavour Mining. The detractors were Predictive Discovery, Megaport, Turaco Gold and Lindian.
Metals X is a pure play tin producer with its primary Renison tin operation in Tasmania. Metals X has streamlined its portfolio in recent years selling its non-core Nifty copper mine to Cyprium Metals and the Wingellina nickel deposit to Nico Resources. These asset sales together with substantial free cash flow generation from its Renison operation, have allowed Metals X to reinvest in capital infrastructure to support more reliable operations. In its latest March quarter, Metals X delivered record free cash flow of $65m to increase its net cash position to over $350m. Metals X has begun deploying this cash into investment stakes in several listed junior mining companies which will provide it with growth optionality moving forward.
Echo IQ is a trading position and increased 35% during the month. The pipeline to commercialise its EchoSolv AS product exceeds 50 potential customers, and the company recently announced four contract wins that provide early validation to support its US hospital expansion story. The company is also preparing to roll out its EchoSolv HF solution with the Mayo Clinic post FDA clearance.
Investor Presentations – Next Week 15th,16th and 18th June 2026
A reminder that CDO is inviting you to attend a briefing with the Cadence Investment Team who will be discussing the changing investment landscape. Over the past five years, higher interest rates, elevated inflation and slowing economic growth have increased the risk of stagflation. At the same time, a record US$40 trillion of U.S. government debt is refinancing from yields of around 1.25% to 4.25%, while many developed‑world governments continue to run large budget deficits. The trend of ever‑expanding valuation multiples has stalled — and for good reason. Join us for a discussion on where investment opportunities exist in this new environment. Tea, coffee and light refreshments will be available after the presentations.
If you haven’t already done so, please click here to register
Presentation venues:
Sydney – Monday 15 June 2026, 9.30am – 11.30am
Location: Karstens, Level 1, 111 Harrington Street, Sydney
Melbourne – Tuesday 16 June 2026, 9.30am – 11.30am
Location: Karstens, Level 9, 123 Queen Street, Melbourne
Brisbane – Thursday 18 June 2026, 9.30am – 11.30am
Location: Karstens, Level 24, 215 Adelaide Street, Brisbane
Historic CDO Dividend Yield
CDO’s franked and gross yields were approximately 3 times higher than those of the All Ordinaries Index for the FY 2025.
CDO has paid $0.845 in dividends ($1.207 including franking) since its inception.
CDO still has 73 cents per share of profits reserve to pay future dividends. This is more than 4 years’ worth of dividends based on the current dividend.
Fund Exposure (Gross and Net)
News
To watch the recently released March 2026 Quarterly Webcast please click here. In this quarterly webcast, Karl Siegling first gives an update on the Company’s performance, its 7.5c fully franked interim dividend paid, CDO’s discount to NTA, the current composition of the portfolio and its top 20 holdings. Karl then discusses in detail two of the fund’s investments, Predictive Discovery (PDI AU) and Samsung (005930 KS) before closing with an update on the outlook for the rest of the year. Karl then closes by reminding investors of the upcoming Investor Presentations where we will highlight important emerging themes for the future.
To view all previous Cadence webcasts and interviews please visit the Media Section of the website.
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 investment process.
