Cadence Capital Limited · ASX:CDM
Cadence Capital — Shareholder Meeting (November 2019)
25 slides from Cadence Capital's shareholder meeting presentation, Nov 18, 2019
Slide 1: AGM and Investor Briefing
Cadence Capital Limited For personal use only AGM and Investor Briefing 18 November 2019
Slide 2: Agenda
Agenda For personal use only 1. Welcome 2. Company Update 3. Portfolio Update – Investment Manager 4. Questions 5. AGM Resolutions 6. Tea 2
Slide 3: Full Year Performance
Full Year Performance For personal use only Gross Net Performance Net Performance All Ords Accum Fund Performance - 30 June 2019 Performance Incl. Franking * (after fees) Incl. Franking (before fees) (after fees) 1 Month -4.3% -4.4% -4.3% 3.5% 1 Year -20.6% -21.3% -20.5% 12.5% 3 Years (per annum) 3.
Slide 4: Full Year Performance
Full Year Performance For personal use only ▪ In 2019 the fund delivered one of its worst performances since the company’s inception 13 years ago. ▪ There was significant volatility through the year with a 18% correction in global equities in the December quarter followed by a 21% rally back to prev
Slide 5: YTD Performance
YTD Performance For personal use only Gross Net Performance Net Performance All Ords Accum Fund Performance - 31 October 2019 Performance Incl. Franking * (after fees) Incl. Franking (before fees) (after fees) 1 Month -1.0% -1.1% -1.0% -0.3% YTD -0.7% -1.0% -0.7% 2.9% 1 Year -10.5% -11.3% -10.6% 20.
Slide 6: CDM Dividend Information
CDM Dividend Information 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.
Slide 7: CDM Discount and Premium to NTA
CDM Discount and Premium to NTA For personal use only $0.40 $0.30 $0.20 $0.10 $0.00 -$0.10 -$0.20 -$0.30 -$0.40 -$0.50 -$0.60 Pre Tax NTA Post Tax NTA 7
Slide 8: Update on CDM Discount to NTA
Update on CDM Discount to NTA For personal use only ▪ CDM shares have been trading at around a 13% discount to pre-tax NTA. ▪ What has been done: ▪ Implemented an on-market share buy-back of up to 10% of CDM shares per annum – to date the company has bought back 5.7 million shares at an average pric
Slide 9: Trading in CDM shares
Trading in CDM shares For personal use only ▪ Recently around 7.5 Million shares a month are traded. ▪ There have been more buyers in our stock than sellers – Financial YTD there were 956 buyers of CDM stock and 898 sellers of CDM stock. ▪ In October there were 254 buyers and 218 sellers. ▪ Around 5
Slide 10: Corporate Governance Best Practice Review 4th Edition
Corporate Governance Best Practice Review 4th Edition For personal use only 1) Lay solid foundations for management and oversight: A listed entity should clearly delineate the respective roles and responsibilities of its board and management and regularly review their performance. 2) Structure the b
Slide 11: Corporate Governance Best Practice Review 4th Edition
Corporate Governance Best Practice Review 4th Edition For personal use only 3) Instil a culture of acting lawfully, ethically and responsibly: A listed entity should instil and continually reinforce a culture across the organisation of acting lawfully, ethically and responsibly. 4) Safeguard the int
Slide 12: Corporate Governance Best Practice Review 4th Edition
Corporate Governance Best Practice Review 4th Edition For personal use only 6) Respect the rights of security holders: A listed entity should provide its security holders with appropriate information and facilities to allow them to exercise their rights as security holders effectively Updated the We
Slide 13: Investment Manager Update: Cadence Capital Limited (CDM)
Investment Manager Update For personal use only Cadence Capital Limited (CDM) ▪ Top 20 Holdings ▪ Eclipx Group (ECX) ▪ Resimac Group (RMC) ▪ ARQ Update (ARQ) ▪ Imdex (IMD) ▪ Bingo Industries (BIN) 13
Slide 14: CDM Top Holdings as at Oct 2019
CDM Top 20 Holdings as at 30 Oct 2019 For personal use only Code Position Direction Currency Holding ECX Eclipx Group Ltd Long AUD 5.2% MQG Macquarie Group Ltd Long AUD 4.5% RMC Resimac Group Ltd Long AUD 4.4% MNY Money3 Corp Ltd Long AUD 4.4% STX Strike Energy Ltd Long AUD 3.3% A more SHJ Shine Cor
Slide 15: ARQ Group (ARQ) - Update
ARQ Group (ARQ)- Update For personal use only ▪ Cadence first invested in 2013 pre a capital return and special fully franked dividend and added to our position as the stock was trending up through 2 capital placements for acquisitions. ▪ Cadence lets its winners run which leads to concentrated, pro
Slide 16: Eclipx (ECX) - PM Karl Siegling
Eclipx (ECX)- PM Karl Siegling For personal use only Stock Profile ECX Fundamental Analysis ▪ ECX is one of Australia’s largest car leasing and fleet services businesses. Long Position ▪ After several earnings downgrades, the stock fell to levels representing 4-5x PE, significantly cheaper than its
Slide 17: Resimac (RMC) - PM Karl Siegling
Resimac (RMC) – PM Karl Siegling For personal use only Fundamental Analysis Stock Profile RMC ▪ In all the banking turmoil nonbanks have started to gain market share off a low base and grow earnings Long Position ▪ Similar to two other nonbank positions in our portfolio ECX and MNY, all growing in n
Slide 18: Imdex (IMD) - PM Charlie Gray
Imdex (IMD) - PM Charlie Gray For personal use only Stock Profile IMD Fundamental Analysis ▪ Imdex is a leading provider of drilling solutions to mining companies globally. Long Position ▪ The company is transforming from a mining services business into a mining technology business after making subs
Slide 19: Bingo Industries (BIN) - PM Charlie Gray
Bingo Industries (BIN) - PM Charlie Gray For personal use only Stock Profile BIN Fundamental Analysis ▪ BIN is a waste management business with operations in metro NSW and VIC. Long Position (FY21f) ▪ We initiated a position in February when the shares were sold off after an earnings downgrade. EPS
Slide 20: Investment Manager Update: Cadence Opportunity Fund
Investment Manager Update For personal use only Cadence Opportunity Fund ▪ Top Holdings ▪ EML Payments (EML) ▪ Opticomm (OPC) ▪ Strike Energy (STX) ▪ Zip Co (Z1P) 20
Slide 21: Cadence Opportunities Fund Top Holdings as at Oct 2019
Cadence Opportunities Fund Top Holdings as at 30 Oct 2019 For personal use only Stock Code Position Direction Exposure Stock Position Direction Exposure AMS AU Atomos Ltd Long AUD LNG AU Liquefied Natural Gas Long AUD BABA US Alibaba Group Holdings Long AUD MEC AU Morphic Ethical Equities Fund Long
Slide 22: Cadence Opportunities Fund Positions
Cadence Opportunities Fund Positions For personal use only EML Payments (EML) ▪ Financial Services company specializing in payment solutions and processing services ▪ What interested us was EML provided payment solutions for some of the largest gaming operators in UK/Australia i.e. bet365/Sportsbet
Slide 23: Trading Process – Z1P
Trading Process – Z1P For personal use only 23
Slide 24: 2020 Outlook
2020 Outlook For personal use only ▪ The US market continues to make all time highs despite all the uncertainty and worry contained in the daily financial press. ▪ Macro economic uncertainty and geopolitical concerns continue. ▪ Interest rates in Australia have halved in the last five months to a cu
Slide 25: Disclaimer
Disclaimer For personal use only The information contained in this report has been prepared with all reasonable care by Cadence Asset Management Pty Ltd and is of a general nature only. It is provided for information purposes only and should not be construed as an offer or solicitation. Nothing cont
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