Cadence Capital Limited · ASX:CDM
Cadence Capital — Shareholder Meeting (November 2012)
23 slides from Cadence Capital's shareholder meeting presentation, Nov 2, 2012
Slide 1: AGM 2nd November 2012
Cadence Capital Limited For personal use only AGM 2nd November 2012 2.00pm – 4.00 pm Museum of Sydney
Slide 2: Gross Fund Performance
Gross Fund Performance For personal use only Performance* to 30th September 2012 CDM** All Ords Outperformance 1 Month -0.37% 2.13% -2.50% 1 Year 17.76% 13.36% +4.40% 2 Years 89.51% 3.81% +85.70% 3 Years 92.89% 5.61% +87.28% 4 Years 133.88% 13.42% +120.46% 5 Years 93.28% -16.74% +110.02% Since Incep
Slide 3: Share Price Return Including Dividends
Share Price Return Including Dividends For personal use only 180.0% 156.7% 160.0% 140.0% 120.0% 100.0% CDM share price change plus dividends 76.7% 80.0% All Ordinaries Accumulation Index 60.0% 40.0% 34.4% 20.0% 13.4% 5.6% 4.5% 0.0% 1 year 3 year Since listing These returns exclude the franking ben
Slide 4: ASX LMI September 2012 Update
ASX LMI September 2012 Update For personal use only Returns Per Annum (%) 3 Year Returns 5 Year Returns Cadence Capital Limited 34.9% 10.8% 2nd Ranked LIC 15.5% 9.1% 3rd Ranked LIC 13.2% 3.7% 4th Ranked LIC 12.2% 2.4% 5th Ranked LIC 10.4% 1.9% Source: ASX website – Market Update on Management Funds
Slide 5: Shareholder Return - years
Shareholder Return - 3 years For personal use only CDM All Ords Source: E.L. & C. Baillieu Stockbroking Ltd - Listed Investment Companies - Sector Report - 18 July 2012 Page 4
Slide 6: Shareholder Return - years
Shareholder Return - 5 years For personal use only CDM All Ords Source: E.L. & C. Baillieu Stockbroking Ltd - Listed Investment Companies - Sector Report - 18 July 2012 Page 5
Slide 7: Historic Dividends Since Listing
Historic Dividends Since Listing For personal use only 14 12 10 8 Special Dividends 6 Annual Dividends 4 2 0 2007 2008 2009 2010 2011 2012 The 12.5 cents of dividends paid for the FY 2012 represent a 9.1% fully franked yield on the current CDM share price of $1.38 DRP operated at 3% discount to
Slide 8: Dividend Yield
Dividend Yield For personal use only CDM Source: E.L. & C. Baillieu Stockbroking Ltd - Listed Investment Companies - Sector Report - 18 July 2012 Page 7
Slide 9: Dividends and Franking
Dividends and Franking For personal use only Accumulated Franking and Profits Reserve provide relative certainty for future Interim and Final dividends as well as the potential for Special Dividends CDM currently has accumulated significant Franking Credits allowing the payment of approximately
Slide 10: Option Exercise and Placement
Option Exercise and Placement For personal use only On 15th September 2012 the CDM Options expired with 98% being exercised. On the 24th September Cadence Capital Limited placed $11.4M at $1.37 per share. This placement closed oversubscribed. Since last year end CDM has 508 new shareholders an
Slide 11: 2012 Performance analysis
2012 Performance analysis For personal use only Performed well in Banks, Diversified Financials, Software & Services and Energy Sectors RHG, MMS, FXL, BVA, CTP Underperformed in Capital Goods and Materials Sectors COF, FFF Page 10
Slide 12: All Ords vs Portfolio Exposure
All Ords vs Portfolio Exposure For personal use only 8000 160% 140% 7000 120% 6000 100% 5000 80% 60% 4000 40% 3000 20% 2000 0% -20% 1000 -40% 0 -60% Long Exposure (RHS) Short Exposure (RHS) Net Exposure (RHS) All Ordinaries (LHS) Page 11
Slide 13: Fund Fashion – Trendy
Fund Fashion – Trendy For personal use only •Leveraged Long Only Funds •130/30 Funds 7000 •Property Trusts 6500 •Infrastructure Trusts •S&P Replication Strategies 6000 •Exchange Traded Funds •Low Cost funds 5500 •Dynamic Asset Allocation 5000 4500 4000 •Cash 3500 •Market Neutral Funds 3000 •Buy Writ
Slide 14: S&P/ASX Resources Index
S&P/ASX 200 Resources Index For personal use only 7500 7000 6500 6000 5500 5000 4500 4000 3500 3000 2500 Page 13
Slide 15: S&P/ASX Banks Index
S&P/ASX 200 Banks Index For personal use only 8000 7000 6000 5000 4000 3000 Page 14
Slide 16: Equities US, Europe, Australia
Equities US, Europe, Australia For personal use only 110 100 90 80 70 60 50 40 US S&P 500 EURO STOXX 50 ASX Page 15
Slide 17: US Debt Problem
US Debt Problem…… For personal use only • In 2007 US Government debt was estimated to be around $8 Trillion • In 2011 US Government debt was estimated to be around $14 Trillion • In 2012 US Government debt was estimated to be $16 Trillion (Not $15) • Next Year US Government debt is estimated to be $
Slide 18: European Debt
European Debt For personal use only • Greece and Eurozone problems are ongoing • Greek GDP declined 6.9% in 2011 – the worst decline ever • Greek unemployment rate was 19.9% in November 2011 (up from 7.5% in September 2008) • Greek youth unemployment rate was 48.1% in November 2011 (up from 22.0% in
Slide 19: Fixed Interest / Interest Rates
Fixed Interest / Interest Rates For personal use only Page 19
Slide 20: Negative Real Interest Rates
Negative Real Interest Rates For personal use only 12% 10% 8% 6% 4% 2% 0% -2% -4% Real AUS 10 YR Govt Bond Yield Real US 10 YR Govt Bond Yield Page 20
Slide 21: Outlook and Questions
Outlook and Questions For personal use only The CDM investment approach remains unchanged since inception and since listing 7 years ago. We will continue to seek out stock specific and industry specific returns. The macroeconomic environment, uncertainty and ambiguity we spoke about last year
Slide 22: Stocks
Stocks For personal use only RHG Limited McMillan Shakespeare Limited Reckon Limited Flexigroup Ltd Bravura Solutions Ltd Macquarie Group Limited Other Stocks Page 21
Slide 23: Disclaimer
Disclaimer For personal use only Information provided, including any expression of opinion, has been obtained from or is based upon sources believed to be reliable but has not in any way been independently verified and no guarantee, representation or warranty, express or implied, is made as to its a
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