Cadence Capital Limited · ASX:CDM
Cadence Capital — Shareholder Meeting (November 2011)
27 slides from Cadence Capital's shareholder meeting presentation, Nov 28, 2011
Slide 1: AGM 28th November 2011
For personal use only AGM 28th N November b 2011 2.00pm – 4.00 pm Museum of Sydney
Slide 2: Celebrating 5 Years of being Listed
Celebrating g 5 Years of being g Listed For personal use only • CDM is celebrating 5 years of being listed • CDM has outperformed the All Ordinaries Accumulation Index in all years since listing • The Morningstar/ ASX September 2011 report ranked CDM as the top performing Australian Equity LIC over
Slide 3: Outperformance in all past years
Outperformance in all past years For personal use only Gross Fund Performance Performance* to 31st October 2011 CDM** All Ords Outperformance 1 Month 4.72% 7.17% -2.45% 1 Year 65 93% 65.93% -3 3.95% 95% +69 88% +69.88% 2 Years 71.70% 1.76% +69.94% 3 Years 140.32% 24.57% +115.75% 4 Years 65.68% -23.6
Slide 4: Morningstar/ASX LMI September Update
Morningstar/ ASX LMI September Update For personal use only Page 3
Slide 5: Patersons LIC Report – August 2011
Patersons LIC Report – August 2011 For personal use only
Slide 6: RHG Dividend – May 2011
RHG Dividend – May 2011 For personal use only Now three ways of presenting performance for the Month % Move Gross Performance for May 2011 (before fees) - 5.60% or Increase in Post-tax NTA ((From $1.35 to $1.46)) + 8.00% or Implied Gross performance for May 2011 +14.29% RHG Dividends received and Fr
Slide 7: Dividends and Franking
Dividends and Franking For personal use only Dividends Interim Final Special Total Gross 2007 2.0c 2.0c 2.0c 6.0c 8.6c 2008 2.5c - - 2.5c 3.6c 2009 - 2.0c - 2.0c 2.9c 2010 2.0c 2.0c - 4.0c 5.7c 2011 30 3.0c 30 3.0c 30 3.0c 90 9.0c 12 9 12.9c TOTAL 9.5c 9.0c 5.0c 23.5 33.7c • 7% Dividend yield in 201
Slide 8: Bonus Option Issue
Bonus Option p Issue For personal use only • Bonus Option Issue – during the September quarter each CDM shareholder received one new option for every existing share. The Bonus Option has a strike price of $1.25 and is exercisable on or before 15th September 2012. The ASX code for the option is CDMO.
Slide 9: All Ords vs Portfolio Exposure
All Ords vs Portfolio Exposure For personal use only All Ords Portfolio Exposure 5500 160% 140% 5000 120% 100% 4500 80% 60% 4000 40% Long Exposure 20% Short Exposure 3500 0% Net Exposure -20% 3000 -40% -60% • During the market turmoil of 2007/08, the Fund significantly reduced net exposure to the ma
Slide 10: Alpha and Beta
Alpha p and Beta For personal use only 160.00% 140.00% 120.00% 100.00% 80.00% Alpha 60.00% Beta 40 00% 40.00% 20.00% 0.00% Positive alpha p generated g in 42 months (59% ( of the time ) Page 9
Slide 11: Sector Returns 2011
Sector Returns 2011 For personal use only Pharmaceuticals, Biotechnology & Life Sciences Transportation Technology Hardware & Equipment T l Telecommunication i i Services S i Real Estate Capital Goods Utilities Retailing Health Care Equipment & Services Customer Services Energy Diversified Financial
Slide 12: 2011 Performance analysis
2011 Performance analysis y For personal use only • Performed well in Banks, Materials, Commercial Services and Supplies, S f Software and Services S and Insurance Sectors. S • Underperformed in the Technology Hardware and Equipment, and T l Telecommunications i i S Services i S Sectors • Performed
Slide 13: RHG Limited
RHG Limited For personal use only • Last Friday RHG went ex-dividend on a 6 cents per share dividend (with 2.57 cents t off franking f ki attached). tt h d) • During September RHG paid a 10 cents per share dividend (with 4.28 cents of franking attached) • In April 2011 RHG paid a 79 cents per share
Slide 14: Reckon Limited
Reckon Limited For personal use only • Over the last financial year Reckon shares rose from $2.05 to $2.28, outperforming t f i the th overallll market k t over the th same period. i d • RKN released their half year results in August. Earnings per share were up 7% to 6.8 cents per share for the half
Slide 15: McMillan Shakespeare Limited
McMillan Shakespeare Limited For personal use only • Over the last financial year McMillan Shakespeare shares rose from $4.69 to $9 58 significantly $9.58, i ifi tl outperforming t f i the th overallll market k t over the th same period. i d • After the end of the financial year there was talk that
Slide 16: Fund Fashion - Trendy
Fund Fashion - Trendy For personal use only •Leveraged L d Long L Only O l Funds F d •130/30 Funds •Property Trusts •Infrastructure Trusts 7000 6500 6000 •S&P Replication Strategies •Exchange E change Traded Funds F nds 5500 •Low Cost funds •Dynamic Asset Allocation 5000 4500 4000 3500 •Cash •Market
Slide 17: Investment Choices?!
Investment Choices?! For personal use only Price: $900,000 - $1,100,000 Bedrooms: 2 Bathrooms: 1 Property type: Single-Family Home Size: Land 80 Sq M Year built: ? Nearby School: Yes Neighborhood: Surry Hills, Sydney
Slide 18: Investment Choices?!
Investment Choices?! For personal use only Price: $4,975,000 Bedrooms: 5 Bathrooms: 7 Property type: Single-Family Home Size: 8,300 sqft Price/sqft: $599/sqft Year built: 1991 Nearby School: Roscomare Road East Neighborhood: Bel Air, California
Slide 19: Investment Choices?!
Investment Choices?! For personal use only Property Residential Sydney, Surry Hills California, Bel Air Price $1,000,000 $4,950,000 Interest Rate 7 0% Variable 7.0% 3 0% Fixed 3.0% Gross Interest $70,000 $148,500 Tax Deductible No Yes After Tax Cost ‘Affordability’ $70,000 $74,250 Page 18
Slide 20: Resources – Where's the Boom
Resources – Where’s the Boom For personal use only BHP RIO $55 00 $55.00 $100 00 $100.00 $50.00 $90.00 $45.00 $80.00 $40.00 $70.00 $35.00 $60.00 $30.00 $25.00 $50.00 $20.00 $40.00 Page 19
Slide 21: Banks – Where's Our Profit
Banks – Where’s Our Profit For personal use only ANZ NAB $27.00 $29.00 $25.00 $27.00 $25.00 $23 00 $23.00 $23.00 $21.00 $21.00 $19.00 $19.00 $17.00 $17.00 $15.00 $15.00 CBA WBC $60.00 $27.00 $55.00 $25.00 $50 00 $50.00 $23 00 $23.00 $45.00 $21.00 $40.00 $19.00 $35.00 $17.00 $30.00 $15.00
Slide 22: Equities – Where's our profit
Equities – Where’s our profit For personal use only 140 130 120 110 100 90 80 Dow Jones FTSE ASX Page 21
Slide 23: Depreciation and Carbon Footprint
Depreciation and Carbon Footprint For personal use only • Bottom line: if we stop trading in our Motor Vehicles every 3 years we save the largest cost of motor vehicle ownership – Depreciation • g The largest environmental impact p of a motor vehicle is its Manufacture not Fuel • See Ted TV – Hans R
Slide 24: Is this as Good as it Gets?
Is this as Good as it Gets? For personal use only • Bricklayers in Sydney charge between $45 and $60 per hour ($360 to $480 per day) • Bricklayers in London charge 90 (AUD$144) pounds per day in a Union or 70 (AUD$112) pounds per day non Union • Casual Wait Staff in Sydney earn $18 per hour on weeke
Slide 25: Occupy Wall Street
Occupy Wall Street For personal use only •The Top 1% are consuming more than ever before •Although people may not be analyzing this trend they are feeling it Page 24
Slide 26: Solving the Debt Problem
Solving the Debt Problem…… For personal use only • In 2007 US Government debt was estimated to be around $8 Trillion • In 2011 US Government debt is estimated to be around $14 Trillion • Next year US Government debt is predicted to be $15 Trillion • Come on Europe…….. Double up to catch up ! www.for
Slide 27: Outlook and Questions
Outlook and Questions For personal use only • Bottom up stock by stock analysis combined with pyramiding into recovering share prices has worked well for the fund • More recently holding high levels of cash and ‘quasi cash’ has worked well in falling markets • g recurring Stocks with strong g cash f
Cadence Capital — Shareholder Meeting (November 2011) on 6ix