Cadence Capital Limited · ASX:CDM
Cadence Capital — Shareholder Meeting (November 2018)
26 slides from Cadence Capital's shareholder meeting presentation, Nov 22, 2018
Slide 1: AGM and Investor Briefing
Cadence Capital Limited For personal use only AGM and Investor Briefing 22 November 2018
Slide 2: 2018 Results at a Glance
2018 Results at a Glance For personal use only ▪ Record Profit before tax of $54.0 million, up 15%. ▪ Record Profit after tax of $41.2 million, up 11.4%. ▪ EPS of 13.5 cents. ▪ Fund gross performance of 18.2% outperforming the All Ordinaries Accumulation Index by 4.5%. ▪ This performance was achieve
Slide 3: Portfolio Performance
Portfolio Performance For personal use only ▪ Stocks that performed well last financial year : ▪ ARQ Group (previously MLB) ▪ McPherson’s ▪ Emeco Holdings ▪ Money3 ▪ Facebook ▪ Navigator Global Investments ▪ Independence Group ▪ Noni B ▪ Macquarie Group ▪ Shine Corporate ▪ Stocks that under performe
Slide 4: YTD Performance
YTD Performance For personal use only Gross Performance* to 19th November 2018 CDM All Ords Accum Outperformance Month to Date -0.3% -1.6% +1.3% YTD -12.1% -6.3% -5.8% 1 Year -4.9% 1.3% -6.2% 3 Years (per annum) 1.0% 7.4% -6.4% 5 Years (per annum) 4.8% 5.7% -0.9% 8 Years (per annum) 14.0% 7.0% +7.0%
Slide 5: 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 6: CDM Total Shareholder Return
CDM Total Shareholder Return ( Including Franking and Dividend Reinvestment) For personal use only $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Share Price Dividends + DRP Franking All Ords Accum + Franki
Slide 7: Top Holdings
Top 20 Holdings For personal use only Top 20 Holdings Code Position Direction Currency Holding ARQ ARQ Group Ltd Long AUD 12.8% MQG Macquarie Group Ltd Long AUD 6.4% EHL Emeco Holdings Ltd Long AUD 6.2% NBL Noni B Ltd Long AUD 5.9% MNY Money3 Corporation Ltd Long AUD 4.3% STO Santos Ltd Long AUD 3.8
Slide 8: ARQ Group
ARQ Group (ASX: ARQ) For personal use only Stock Profile Fundamental Analysis ▪ ARQ (previously Melbourne IT) Long Position ▪ Whilst the half year result was close to our numbers, EPS Growth 19% earnings guidance was below market expectations, PE 14x leading to a negative share price reaction PEG 0.
Slide 9: ARQ Group – Long Position
ARQ Group– Long Position For personal use only * Chart adjusted for 54 cents capital return and 25 cents special dividend 9
Slide 10: Macquarie Group Ltd
Macquarie Group Ltd (ASX:MQG) For personal use only Fundamental Analysis Stock Profile ▪ MQG continued to perform well for the fund Long Position through 2018, with management again delivering earnings ahead of market expectations EPS Growth 15% ▪ The recent appointment of the head of Macquarie PE 1
Slide 11: Macquarie Group Ltd – Long Position
Macquarie Group Ltd – Long Position For personal use only 11
Slide 12: Teva Pharmaceutical Industries
Teva Pharmaceutical Industries (NYSE:TEVA) For personal use only Stock Profile Fundamental Analysis ▪ A ‘turnaround story’ with the disastrous Allergen Long Position Generics acquisition causing stock to collapse as well as the changing generics landscape EPS Growth 8% PE 8x ▪ We initiated with a sm
Slide 13: Teva Pharmaceutical Industries
Teva Pharmaceutical Industries (NYSE:TEVA) For personal use only $80 $70 $60 $50 $40 $30 $20 $10 $0 Nov-13 May-14 Dec-14 Jul-15 Jan-16 Aug-16 Feb-17 Sep-17 Mar-18 Oct-18 13
Slide 14: Emeco Holdings Ltd
Emeco Holdings Ltd (ASX:EHL) For personal use only Stock Profile Fundamental Analysis ▪ Emeco is an equipment rental provider to Long Position the resource and infrastructure industries. EPS Growth 15% ▪ Management has transformed this financially imperilled company into a thriving, robust PE 12x ea
Slide 15: Emeco Holdings Ltd – Long Position
Emeco Holdings Ltd – Long Position For personal use only 15
Slide 16: Noni B Ltd
Noni B Ltd (ASX:NBL) For personal use only Stock Profile Fundamental Analysis ▪ Noni B is now the premier retailer for womens Long Position fashion in the over 40 category. EPS Growth 48% ▪ NBL recently acquired the assets of Specialty PE 9x Fashion, including Millers, Rivers etc. for $31m funded vi
Slide 17: Noni B Ltd – Long Position
Noni B Ltd– Long Position For personal use only 17
Slide 18: Money3 Corporation Ltd
Money3 Corporation Ltd (ASX:MNY) For personal use only Fundamental Analysis Stock Profile ▪ Money3 is currently transforming itself from a general purpose lender to those who can’t access Long Position typical banking facilities, into a singular and EPS Growth 13% dedicated lender to the auto indust
Slide 19: Money3 Corporation Ltd – Long Position
Money3 Corporation Ltd– Long Position For personal use only 19
Slide 20: Mayne Pharma Group Ltd
Mayne Pharma Group Ltd (ASX:MYX) For personal use only Stock Profile Fundamental Analysis ▪ MYX is a pharmaceutical company which generates Long Position over 90% of its sales in the US EPS Growth 20% ▪ The business was impacted by significant price deflation in the US generics industry across 2016
Slide 21: Mayne Pharma Group Ltd – Long Position
Mayne Pharma Group Ltd– Long Position For personal use only $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 May-13 Dec-13 Jun-14 Jan-15 Aug-15 Feb-16 Sep-16 Mar-17 Oct-17 Apr-18 Nov-18 21
Slide 22: G8 Education Ltd
G8 Education Ltd (ASX:GEM) For personal use only Fundamental Analysis Stock Profile ▪ G8 Education is the largest childcare centre operator in Australia, with approximately 8% market share Long Position ▪ Oversupply of childcare centres and affordability issues EPS Growth 16% have seen significant o
Slide 23: G8 Education Ltd - Long Position
G8 Education Ltd - Long Position For personal use only $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 Jan-18 Feb-18 Mar-18 May-18 Jun-18 Jul-18 Aug-18 Oct-18 Nov-18 23
Slide 24: CDM shareholders Priority Offer in CDO
CDM shareholders Priority Offer in CDO For personal use only ▪ Cadence Opportunities Fund (CDO), is an active trading version of the Cadence Capital process. ▪ Long biased, long-short Listed Investment Company (LIC) investing domestically and internationally using of our proprietary Fundamental and
Slide 25: Outlook
Outlook For personal use only ▪ Volatility has returned to global share markets in recent months, with October recording the worst monthly return in the US since 2012. ▪ Market participants are grappling with the prospect of increasing US interest rates, and US/China trade tensions, against the rela
Slide 26: 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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