Cadence Opportunities Fund returned a positive performance of 1.4% in October, compared to the All Ordinaries Accumulation Index which was up 5.7% for the month. Year to date the fund and the All Ordinaries Accumulation Index are both up 6.5%. 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 and AJ Lucas Group.
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, Bowen Coking Coal, Australian Pacific Coal 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 7.5 cents per share fully franked year-end dividend, bringing the full year dividend to 15.0 cents per share fully franked. This 2022 full year dividend of 15.0 cents per share fully franked equates to an 6.5% fully franked yield or an 9.3% gross yield (grossed up for franking credits) based on the September month end share price of $2.30 per share. After paying this dividend the Company still has 44 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 1:30pm (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 firstname.lastname@example.org.
Historic Portfolio Exposure
Portfolio Sector 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 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.
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. To view all previous Cadence webcasts and press articles, please visit the Media Section of the website.