Cadence Capital Limited · ASX:CDM

Cadence Capital — Shareholder Meeting (November 2016)

14 slides from Cadence Capital's shareholder meeting presentation, Nov 25, 2016

  1. Slide 1: AGM and Investor Briefing

    Cadence Capital Limited For personal use only AGM and Investor Briefing 25 November 2016

  2. Slide 2: Fund Performance

    Fund Performance For personal use only Performance* to 31st October 2016 CDM** All Ords Outperformance 1 Month -0.4% -2.2% +1.8% YTD 6.4% 3.0% +3.4% 1 Year -9.9% 6.6% -16.5% 3 Years 11.0% 13.5% -2.5% 5 Years 51.7% 54.1% -2.4% 8 Years 264.6% 91.9% +172.7% 10 Years 218.8% 54.6% +164.2% Since Inception

  3. Slide 3: 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.

  4. Slide 4: Returns and Yield

    Returns and Yield For personal use only  CDM has earned 15% pa gross performance for 11 years and currently yields around 7% fully franked.  To pay a 7% fully franked yield the portfolio needs to earn a gross return of 11%. CDM All Ords Cash Gross Return 11% 5.9% 2.0% Less Management fees ( 1%) (0

  5. Slide 5: CDM franking since listing

    CDM franking since listing (31st Oct 2016) For personal use only 59.6% 20.8% 108.0% 52.2% 1.4% 4.5% 2.6% 9.7% 13.5% 6.6% 5.2% -13.0% 5

  6. Slide 6: Discount and Premium to NTA past years

    Discount and Premium to NTA past 5 years For personal use only 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% 31 October 2016: Post Tax NTA $1.199* CDM Share Price $1.200* (* After the 4.0 Cent fully franked final dividend) 6

  7. Slide 7: Premium/Discount to NTA

    Premium/Discount to NTA For personal use only  CDM has earned 15% pa gross performance for 11 years and currently yields around 7% fully franked.  For an SMSF on 0% tax this dividend is worth 10% (3% franking).  For an SMSF on 15% tax this dividend is worth 8.5% (1.5% franking).  Paying a 15% pr

  8. Slide 8: Fund Top Positions – October 2016

    Fund Top Positions – 31 October 2016 For personal use only Code Position Direction Currency Holding MLB Melbourne IT Ltd Long AUD 9.4% MQG Macquarie Group Ltd Long AUD 9.1% RFG Retail Food Group Long AUD 6.1% HGG Henderson Group Plc Long AUD 5.4% 9984 JP Softbank Group Corp Long AUD 3.6% FB US Faceb

  9. Slide 9: Melbourne IT Limited (ASX code MLB)

    Melbourne IT Limited (ASX code MLB) For personal use only  The Business:  Domain name and web hosting provider, including a growing web solutions business  Enterprise Services (Cloud and Managed services, Mobile solutions and Data and Analytics).  MLB integration of NetRegistry and other acquisi

  10. Slide 10: Domino's Pizza (ASX code DMP)

    Domino’s Pizza (ASX code DMP) For personal use only  DMP holds exclusive master franchise rights for the Domino's brand in Australia, New Zealand, France, Belgium, the Netherlands and Japan.  There are 2,000 pizza stores in the network. 75% are franchised, and 25% are corporate.  FY16 underlying

  11. Slide 11: The Comparison

    The Comparison For personal use only MLB - Long Position DMP - Short Position PE 11 PE 52 EPS Growth 50% EPS Growth 30% PEG 0.2 PEG 1.7 OCF Yield 11% OCF Yield 2% Net Cash -$10M Net Cash -$261M Melbourne IT, trading at 10 to 11 times PE multiple, is one of the IT companies building the IT infrastruc

  12. Slide 12: Resources Thesis

    Resources Thesis For personal use only  S&P/ASX 200 Resources reached a low of 2000 in January 2016 and is up 50% since.  Iron Ore and Coal have been particularly strong and more recently some base metals. 8,000 6,000 4,000 2,000 0  Cadence has been scaling out of its short resources and scaling

  13. Slide 13: Outlook

    Outlook For personal use only  Australia has had falling interest rates for 30 years, markets are questioning whether this trend has ended, this could be an important inflection point.  Speculation of increasing interest rates in the USA, this could be an important inflection point.  Rising US in

  14. Slide 14: 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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