Cadence Capital Limited · ASX:CDM
Cadence Capital — Shareholder Meeting (November 2010)
13 slides from Cadence Capital's shareholder meeting presentation, Nov 16, 2010
Slide 1: AGM 16th November 2010
For personal use only AGM 16th N November b 2010 10.30am – 12.00 pm History House
Slide 2: All Ordinaries Index
All Ordinaries Index For personal use only 8000 7000 6000 5000 4000 3000 2000 1000 0 Oct‐02 Oct‐03 Oct‐04 Oct‐05 Oct‐06 Oct‐07 Oct‐08 Oct‐09 Oct‐10 Î The market has now risen more than 50% since it reached a low point in March 2009, and has since been tracking sideways for a year Î We are half way b
Slide 3: All Ords vs Portfolio Exposure
All Ords vs Portfolio Exposure For personal use only All Ords Portfolio Exposure 5500 140% 120% 5000 100% 4500 80% 60% Long Exposure 4000 Short 40% Exposure Net 20% Exposure 3500 0% 3000 -20% Î During the market turmoil of 2007/08, the Fund significantly reduced net exposure tot the th market k t Î
Slide 4: Fund Performance
Fund Performance For personal use only Performance to 12th November 2010 CDM All Ords Outperformance 1 Month (Estimate) 9.84% 1.44% 1 Year 14.01% 5.42% +8.59% 2 Years 69.06% 41.79% +27.27% 3 Years 13.40% -17.40% +30.80% 4 Years 28.75% 3.40% +25.35% Inception to date accumulated return (61 months) 11
Slide 5: Discount to NTA
Discount to NTA For personal use only $1.40 $1 20 $1.20 $1.00 $0 80 $0.80 CDM Share Price $0.60 Pre Tax NTA (diluted) Post Tax NTA $0.40 (diluted) $0.20 $0.00 Page 5
Slide 6: Dividends – paid to date
Dividends – paid to date For personal use only Amount paid Grossed up Date Paid Details Ordinary Special Total Ordinary Special Total 06‐Oct‐06 Final 2006 3.0 5.0 8.0 4.3 7.1 11.4 27‐Apr‐07 Interim 2007 2.0 1.0 3.0 2.9 1.4 4.3 18‐Oct‐07 Final 2007 2.0 1.0 3.0 2.9 1.4 4.3 09 A 08 09‐Apr‐08 I t i 2008
Slide 7: Discount to NTA – Opportunity
Discount to NTA – Opportunity For personal use only 50.00% 45.00% 40.00% 35.00% Return on 30.00% NTA Return Return on 25.00% Share Price 20.00% 15.00% Opportunity 10.00% 5.00% Time The current return on Share Price is significantly higher than the return on Net Tangible Assets Page 7
Slide 8: Steps taken to reduce Discount
Steps taken to reduce Discount For personal use only ÎFund rated by Zenith – Recommended rating received ÎQuarterly Webcasts broadcast by fund manager ÎIncreased transparency of portfolio holdings ÎFund manager participation in Business Television interviews ÎDividend payout policy ÎFund manager par
Slide 9: Current Sector Exposure
Current Sector Exposure For personal use only Other 8% Î The five sectors where Cadence generated strong positive returns during the past financial year were Materials, Banks, Software & Services, Telecommunication Services and Diversified Financials Î Cadence underperformed in Transportation and Ut
Slide 10: Performance by Stock
Performance by Stock For personal use only Î Top ten stocks that Cadence generated strong positive returns during the financial year 2010: RKN RHG RKN, RHG, RIO, RIO DIO DIO, CUS CUS, TPM TPM, AVO AVO, NKP NKP, MCC MCC, MMS Î Stocks that underperformed during the financial year were: BVA, TCL Page 1
Slide 11: Current top ten positions
Current top ten positions For personal use only ASX Stock Direction % Holding RHG RHG Ltd Long 26 9% 26.9% RKN Reckon Ltd Long 7.5% BVA Bravura Solutions Ltd Long 7.2% MMS McMillan Shakespeare Limited Long 6.3% AWC Alumina Limited Long 5.7% CFE Cape Lambert Iron Ore Ltd Long 4.6% RIO Rio Tinto Ltd L
Slide 12: RHG Limited (RHG)
RHG Limited (RHG) For personal use only Î RHG is the largest holding in our portfolio Î RHG rose from 51.5 cents at the start of the financial year to 62 cents at the end of the financial year. This equates to a return of over 20% for the year for our RHG holding Î RHG announced at their AGM last Th
Slide 13: Outlook and Questions
Outlook and Questions For personal use only Î Bottom up stock by stock analysis combined with pyramiding into recovering share prices has worked well for the fund this year Î Last year we indicated ‘ volatility and extreme valuation levels will create opportunities….. but we will need to be patient
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