Cadence Capital Limited · ASX:CDM
Cadence Capital — Shareholder Meeting (November 2015)
26 slides from Cadence Capital's shareholder meeting presentation, Nov 23, 2015
Slide 1: AGM and Investor Briefing
Cadence Capital Limited For personal use only AGM and Investor Briefing Monday, 23rd November 2015 10.30am – 12.00pm Museum of Sydney
Slide 2: Resolution 1: Adopt the Remuneration Report
Resolution 1 For personal use only To Adopt the Remuneration Report Votes for 13,930,176 Votes against 1,905,387 Open Proxy Votes to the Chair - Open Proxy Votes - Others 1,082,654 Any Questions? Someone to support the resolution Someone to second the resolution
Slide 3: Resolution 2: Re-elect Mr Karl Siegling as a Director
Resolution 2 For personal use only To re-elect Mr Karl Siegling as a Director Votes for 28,672,990 Votes against 99,187 Open Proxy Votes to the Chair 2,000,341 Open Proxy Votes - Others 948,634 Any Questions? Someone to support the resolution Someone to second the resolution
Slide 4: Resolution: Appointment of Auditor – Pitcher Partners
Resolution 3 For personal use only Appointment of Auditor – Pitcher Partners Votes for 28,254,350 Votes against 124,722 Open Proxy Votes to the Chair 2,062,788 Open Proxy Votes - Others 948,634 Any Questions? Someone to support the resolution Someone to second the resolution
Slide 5: Investment Philosophy and Beliefs
Investment Philosophy and Beliefs For personal use only Cadence Capital Limited looks to outperform the market by going long or short equities and by moving into and out of cash It looks for long and short opportunities across all sectors, market caps and countries – the portfolio moves to where the
Slide 6: Cadence Fundamental Research
Cadence Fundamental Research For personal use only
Slide 7: The Cadence Fundamental Research Model
Cadence Fundamental Research For personal use only The Cadence Fundamental Research Model 300-400 company visits per annum Detailed industry research A company’s relative bargaining power Proprietary Models
Slide 8: Technical Research
Technical Research For personal use only the short-term (one year) share price and share volume indicators (short term trend) the long-term (five year) share price and share volume indicators (long term trend) the average weekly volume of shares traded
Slide 9: Entry and Exit of Long Positions
Entry and Exit of Long Positions For personal use only Wait until trend has turned and then Identify a change in trend - 1, 3 and 12 month accumulate positions chart analysis Do not average down Individual stock positions are monitored for a change in trend using bear market variance and liquidity m
Slide 10: Performance - 10 year track record
Performance - 10 year track record For personal use only Performance* to 31st October 2015 CDM** All Ords Outperformance 1 Month 5.60% 4.59% +1.01% 1 Year 14.42% 0.45% +13.97% 2 Years 23.12% 6.41% +16.71% 3 Years 44.78% 32.67% +12.11% 5 Years 179.30% 38.80% +140.50% 8 Years 178.88% 10.36% +168.52% 1
Slide 11: Our Super Hero's past years
Our Super Hero’s past 10 years For personal use only Peter BMW trades in his old car and gets a new car
Slide 12: Past years: Market 5.8% p.a.
Past 10 years: Market 5.8% p.a. For personal use only 55,000 Euro Grexit 50,000 China 45,000 40,000 European / US Resources Resources Debt default Boom Bust Oil Bust 35,000 30,000 GFC Oil Boom 25,000 20,000 15,000
Slide 13: Yield
Yield For personal use only Calendar Year Interim Final Special Total Gross (Inc. Franking) 2007 2.0c 2.0c 2.0c 6.0c 8.6c 2008 2.5c 2.2c* - 4.7c 5.8c 2009 - 2.0c - 2.0c 2.9c 2010 2.0c 2.0c - 4.0c 5.7c 2011 3.0c 3.0c 3.0c 9.0c 12.9c 2012 4.0c 4.0c 4.5c 12.5c 17.8c 2013 5.0c 5.0c 1.0c 11.0c 15.7c 2014
Slide 14: Years on
10 Years on For personal use only Funds Under Management (FUM) of $400 million One of the most actively traded LICs - ASX Ranking 7,500 shareholders - 65% of current investors are SMSFs Cadence Management team are still the largest Investor in the Company Broker research by Morgan Stanley, Evans & P
Slide 15: Overseas Investments Performance
Overseas Investments Performance For personal use only In 2015 overseas investments delivered four times the returns of domestic investments. Currency contributed 1.3% to overall fund performance. CDM is a trader for tax purposes. CDM pays Australian income tax on any profits made (including on over
Slide 16: Outlook
Outlook For personal use only One year ago we said the AUD$, Iron ore and Oil were in a downward trend. 51, 41, 31.These trends are still firmly in place. Investing with the trend rather than against the trend is prudent In 2015/16 investing with the trend continues to mean avoiding or ‘shorting’ re
Slide 17: Portfolio Top Positions
Portfolio Top 20 Positions For personal use only Code Position Direction Currency Holding MQG Macquarie Group Ltd Long AUD 11.7% HGG Henderson Group Plc Long AUD 6.9% LUX IM Luxottica Group SPA Long EUR 5.8% MLB Melbourne IT Ltd Long AUD 5.6% MA US Mastercard Inc Long USD 5.5% GILD US Gilead Science
Slide 18: Great Wall Motor Co. – Long Position
Great Wall Motor Co. – Long Position For personal use only Fundamental Analysis Idea Internal The ‘must own’ stock in Singapore and Hong Kong Generation last year when we visited DB Asia Conference Previously trading on 31x PE multiple Stock Profile Earlier this year became the ‘must not own’
Slide 19: Great Wall Motor Co. – Long Position
Great Wall Motor Co. – Long Position For personal use only HKD 25.0 HKD 20.0 HKD 15.0 HKD 10.0 HKD 5.0 HKD 0.0 * Chart adjusted for capital returns, share splits, etc
Slide 20: Melbourne IT Ltd – Long Position
Melbourne IT Ltd – Long Position For personal use only Fundamental Analysis Idea Internal MLB is a turnaround story Generation Earnings growth in 2016 is strong and very strong for 2017 Stock Profile Catalyst has been the purchase of Net Registry Long Position business with the founder taking
Slide 21: Melbourne IT Ltd – Long Position
Melbourne IT Ltd – Long Position For personal use only $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 * Chart adjusted for 54 cents capital return, share splits, etc
Slide 22: Rio Tinto Ltd – Short Position
Rio Tinto Ltd – Short Position For personal use only Fundamental Analysis Idea Internal In the first half of 2015 Rio Tinto made 63% of it’s Generation profit from iron ore, 24% from aluminium, 11% from copper, and 2% from other commodities. Stock Profile The price trend for these main commoditi
Slide 23: Rio Tinto Ltd – Short Position
Rio Tinto Ltd – Short Position For personal use only $75.00 $70.00 $65.00 $60.00 $55.00 $50.00 $45.00 $40.00
Slide 24: Mastercard Inc. – Long Position
Mastercard Inc. – Long Position For personal use only Fundamental Analysis Idea Mastercard (MA US) is a payments technology Internal Generation company with operations in more than 200 countries and more than 2 billion cards issued. Stock Profile Mastercard is the technology network intermediary
Slide 25: Mastercard Inc. – Long Position
Mastercard Inc. – Long Position For personal use only USD 100 USD 90 USD 80 USD 70 USD 60 USD 50 USD 40 USD 30 USD 20 USD 10 USD 0
Slide 26: Questions
Questions For personal use only We would like to open up the floor to any questions that they may have on the stocks in the portfolio. Thank You
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