Cadence Capital Limited
Overview
| LIC Name | Cadence Capital Limited |
| ASX Ticker | CDM |
| Listing Year | 2006 (17 years operating) |
| Size (Market Cap) | $225M |
| Investment Focus | Global Equities |
| Portfolio Bias | No Bias |
| Benchmark | S&P/ASX All Ordinaries Accumulation Index |
| Management Structure | Externally Managed |
| Investment Manager | Cadence Asset Management Pty Ltd |
| Management Fee Structure | 1.00% inclusive of GST |
| Performance Fee Structure | 20% inclusive of GST |
| Cost Indicator (FY23) | 1.26% (excluding Performance Fees) |
| Objective | CDM provides exposure to an actively managed long/short portfolio of Australian and international public companies (predominantly Australian). The investment objectives of the company are to 1) manage the portfolio on an absolute basis, and 2) achieve above market risk-adjusted returns. |
| Objective | |
| CDM provides exposure to an actively managed long/short portfolio of Australian and international public companies (predominantly Australian). The investment objectives of the company are to 1) manage the portfolio on an absolute basis, and 2) achieve above market risk-adjusted returns. |
|
| Recent Annual Reports | 2023, 2022, 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014 |
Key Personnel
Board Members
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Karl Siegling
Chairman and Portfolio Manager. Chairman and Manager Director of Cadence Asset Management (Investment Manager).
Joined CDM: 2006
Shares Owned: 29M
Share Value: $22M
*Share data from 2023 Annual Report
Karl Siegling has 30 years investment experience in the financial services sector both in Australia and overseas. He holds a Bachelor of Commerce and a Law degree from the University of Melbourne and a MBA from INSEAD in France. Karl holds a Post ...
-
James Chirnside
Non-Executive Director
Joined CDM: 2006
Shares Owned: 51K
Share Value: $39K
*Share data from 2023 Annual Report
Chairman of the Nomination and Remuneration Committee and a member of the Audit and Risk Committee.<br><br>James Chirnside has worked in financial markets for 38 years mostly as an equities fund manager across a broad range of markets and ...
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Wayne Davies
Non-Executive Director and Company Secretary
Joined CDM: 2013
Shares Owned: 1.2M
Share Value: $954K
*Share data from 2023 Annual Report
Member of the Audit and Risk Committee and Nomination and Remuneration Committee.<br><br>Wayne Davies has over 20 years funds management experience in Equity Long/Short Funds both in Australia and overseas. He is both a member of the South ...
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Janelle Webster
Non-Executive Director
Joined CDM: 2018
Shares Owned: 189K
Share Value: $145K
*Share data from 2023 Annual Report
Chairman of the Audit and Risk Committee and a member of the Nomination and Remuneration Committee.<br><br>Jenelle is currently the Director of Advancement at The Scots College, a member of Chartered Accountants, Chartered Secretaries, Institute ...
Investment Management
-
Karl Siegling
Chairman and Portfolio Manager. Chairman and Manager Director of Cadence Asset Management (Investment Manager).
Joined CDM: 2006
Shares Owned: 29M
Share Value: $22M
*Share data from 2023 Annual Report
Karl Siegling has 30 years investment experience in the financial services sector both in Australia and overseas. He holds a Bachelor of Commerce and a Law degree from the University of Melbourne and a MBA from INSEAD in France. Karl holds a Post ...
Shareholders & Portfolio Size
Number of Shareholders
Portfolio Size
Portfolio Holdings
Top 10 Holdings at end of FY 2023
Performance
Historical Performance
| Updated: February 2024 | 1yr | 3yrs | 5yrs | 10yrs |
|---|---|---|---|---|
| With Dividends Reinvested - Net | -8.3% | 0.8% | 3.9% | 0.3% |
| With Dividends Reinvested - Gross | -5.0% | 3.9% | 6.9% | 3.2% |
Chart of Historical Performance
Dividends
Dividend History
| Payment Date | Dividend Type | Dividend Amount | Franking Level |
|---|---|---|---|
| 31 Oct, 2023 | Final | $0.03 | 100% |
| 28 Apr, 2023 | Interim | $0.04 | 100% |
| 28 Oct, 2022 | Final | $0.04 | 100% |
| 14 Apr, 2022 | Interim | $0.04 | 100% |
| 29 Oct, 2021 | Final | $0.03 | 100% |
| 13 May, 2021 | Interim | $0.02 | 100% |
| 30 Oct, 2020 | Final | $0.02 | 100% |
| 13 May, 2020 | Interim | $0.02 | 100% |
| 30 Oct, 2019 | Final | $0.02 | 100% |
| 13 May, 2019 | Interim | $0.03 | 100% |
Chart of Dividend History
Corresponding Dividend Yields
Dividend Comparison
Costs
Cost Indicator (%)
Actual Costs
Share Price vs NTA
Some Common Questions about CDM
Cadence Capital Limited (ticker: CDM) is a listed investment company (LIC) that has been trading on the Australian Stock Exchange (ASX) since December 5, 2006. As of the most recent data, CDM has a market capitalisation of approximately $200 million. The company's primary investment focus is global equities, and its portfolio does not exhibit a particular bias towards any specific sector or asset class.
Cadence Capital Limited (CDM) aims to deliver an actively managed long/short portfolio comprising both Australian and international public companies. While the portfolio predominantly consists of Australian equities, it also includes international holdings. CDM manages its portfolio based on two primary investment objectives:
- Managing the portfolio on an absolute basis, aiming for positive returns irrespective of broader market conditions.
- Achieving above-market risk-adjusted returns, indicating a focus on delivering returns that outperform market benchmarks.
Cadence Capital Limited (CDM) is an investment that should be considered as a growth/risk asset within your investment portfolio, given its focus on global equities. As with any investment decision, it's crucial to assess various key metrics to make an informed choice, taking into account the following factors:
- Long-term Performance: Evaluate CDM's historical performance, ideally over a period of 5 years or more. Determine whether CDM has consistently delivered returns that meet or exceed its benchmarks, such as the S&P/ASX All Ordinaries Accumulation Index, as this indicates its ability to generate competitive returns.
- Dividend Reliability: Examine CDM's track record when it comes to dividends. Investigate whether the company has maintained or increased its dividend payouts over the long term, providing a source of income to investors.
- Underlying Holdings: Gain insights into CDM's underlying investments. As LICs like CDM invest in a diverse array of assets, including large or micro-cap equities, infrastructure, property, and more, it's important to delve into the specifics. This information can typically be found in monthly updates or the most recent annual report. Ensure that the portfolio aligns with your investment objectives and risk tolerance.
- Fees: Assess the cost of investing in CDM by examining its fee structure. This includes the management fee and any performance fees. Consider the Management Expense Ratio (MER), which indicates the fund's overall cost relative to its net tangible assets. For LICs on the ASX, MER can vary significantly, ranging from low to high percentages. Lower MER translates to more cost-effective investing, and CDM has a calculated MER of 2.51% as of the most recent financial year, which is an important factor affecting your investment returns.
A Listed Investment Company (LIC) is one type of investment fund structure (i.e. shareholder funds pooled together and invested together, either actively by a manager, or passively). Other types of investment funds include Exchange Traded Funds (ETFs) (which can be both actively managed or passive), Listed Investment Trusts, or Managed Funds.
The different structures have their own positives and negatives, which are dependent on the goals of the investor and their own individual investment structure.
Some of the benefits of the LIC structure (the structure of CDM) include:
- It's a closed-end investment vehicle: Meaning the manager has a fixed pool of capital to invest with a long-term mindset, and doesn't have the risk of fast redemptions by investors in a time of market panic.
- They can smoothen out income to the investors: Which can be beneficial for both tax efficiency and emotional mindset, due to being able to retain profits over time (as compared to the trust structure, which must distribute income and crystallized capital gains to the investor in that financial year).
- The income will most likely be in the form of fully franked dividends: Which is an attractive form for Australian retirees due to the franking system in Australia. Since LICs are companies themselves and pay tax in Australia on profits, they receive franking credits paid on the tax they pay, in addition to the franking credits they receive from their investment portfolio. Well-managed LICs ensure their franking credit reserves are sufficient to pay future fully franked dividends (see 'franking reserves' chart above).