Cadence Capital Limited (ASX: CDM) today announced its full-year results for the period ending 30 June 2026, reporting robust performance for its investment fund. Cadence Capital is a listed investment company that manages a diversified portfolio of Australian and international equities. The fund was up 20.1% for the financial year, outperforming the All Ordinaries Accumulation Index by 14.4%. The company recorded a profit after tax of $33.4 million, with its share price, including dividends and franking, climbing 30.6% over the year. Chairman Karl Siegling highlighted the strong finish and the fund’s strategic shifts.
Mr. Siegling noted that gold and precious metals related stocks were significant contributors to performance in the first half, with positions like Predictive Discovery/Robex Resources, Kingsgate, and Endeavour Mining benefiting from a gold price tailwind. The gold price peaked at nearly US$5,600/oz in January. During the second half, a falling gold price and changing trends in resource stocks led the company to sell down over 80% of its gold and resource holdings, resulting in an elevated cash position as at 30 June 2026. This shift created opportunities for new investments.
Cadence Capital has since initiated positions in “market darling” businesses such as CSL, Cochlear, Pro Medicus, and A2 Milk, which had experienced significant market sell-offs but now meet its fundamental criteria. For shareholders, the board announced a 3.0 cents per share fully franked final dividend and a 1.0 cent fully franked special dividend, bringing the full-year fully franked yield to 9.3%, or 13.2% gross, based on the share price of $0.755 on the announcement day. The company maintains 25cps in profit reserves and 5.4cps in franking credits.
