Cadence Capital Limited · ASX:CDM
Cadence Capital — Shareholder Meeting (September 2006)
14 slides from Cadence Capital's shareholder meeting presentation, Sep 26, 2006
Slide 1: Annual General Meeting
Annual General Meeting 26th September 2006 1
Slide 2: Agenda
Agenda • Annual Results • Dividend • Exercise of Options • Cadence Capital Limited Float • Investment Process • Investment Objectives • Questions 2
Slide 3: Results
Results • Gross portfolio increased 33.05% for the 9 months ended 30th June 2006. Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 YTD Cadence Capital Limited 0.34% 1.75% 4.04% 7.64% 4.29% 5.08% 5.59% 2.36% -1.75% -1.78% 30.68% All Ordinaries Acc Index -3.83% 4.40% 3.04% 3.65% 0
Slide 4: Dividend
Dividend • On the 29th August 2006 – Board declared a 8 cent per share fully franked dividend. Ex dividend date was the 30th August 2006. • Dividend payable on the 6th October 2006. • Dividend consists of – 1.5c interim dividend, 1.5c final dividend and 5c special dividend. • 8 cent final dividend f
Slide 5: Options
Options • Exercisable on or before 31st October 2006. • 1 ordinary share for every option held. • Strike price $1.00. • Options are “deep in the money”. 5
Slide 6: Float
Float • The board of Cadence Capital Limited has approved the float of the fund. • Shares will list on the Stock Exchange at the Pre-tax NTA, post exercising of the $1 strike price options. 6
Slide 7: Investment Philosophy
Investment Philosophy Over-riding belief of management is that the use of both fundamental and technical analysis has a greater probability of producing higher returns than either fundamental or technical analysis alone • Fundamental Analysis – Bottom up research – Target 20 – 40 core investments –
Slide 8: Fundamental Analysis
Fundamental Analysis • In-house proprietary bottom up analysis of companies – Earnings per share growth historically and two year estimates – Free Cash Flow per share historically and two year estimates – Free Cash Flow to price yield per share historically and two year estimates – Price/Earnings ra
Slide 9: Fundamental Analysis
Fundamental Analysis • A quantitative evaluation of Management – strong focus on company meetings. Target 600-900 company visits/ management meetings per year • Detailed industry research and assessment • Analysis of a companies relative bargaining power within the industry 9
Slide 10: Technical Analysis
Technical Analysis • The manager will focus on the following criteria to appraise potential trading opportunities – 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 avera
Slide 11: Investment Process
Investment Process Investment Universe ASX Listed securities & Initial Public offering Technical Bad Bad Fundamental NO Trend Analysis Analysis TRADE Good Good Fundamental SHORT Technical Analysis SALE Trend Analysis Bad Good Good Bad Potential Core Wait for TRADE Investment Trend ONLY Change More D
Slide 12: Exposures & Risk Management
Exposures & Risk Management • Generally: – Gross Exposure – 80% to 150% of NAV – Net Exposure – 40% to 130% of NAV – Single stock position < 20% of NAV – Single sector position < 50% of Gross Exposure • Maximum leverage is $1 leverage for every $1 Equity • Individual transactions monitored against a
Slide 13: Investment Objectives
Investment Objectives • To ensure that money is managed on an absolute return basis. • To achieve a high real rate of return, comprising both income (fully franked dividends) and capital growth ,and • To provide investors with a co-investment opportunity alongside the manager and board of directors.
Slide 14: Questions/Discussion
CADENCE CAPITAL LIMITED Questions/Discussion 14
Cadence Capital — Shareholder Meeting (September 2006) on 6ix