Cadence Opportunities Fund Limited (ASX: CDO), an Australian investment company managing a diversified portfolio of listed equities, has reported a record profit after tax of $5.66 million for the financial year ending June 30, 2026. The fund’s value increased by 30.3% over the year, significantly outperforming the All Ordinaries Accumulation Index by 24.6%. Including dividends and franking, CDO’s share price rose an impressive 41.0%. Chairman Karl Siegling highlighted the company’s consistent track record, noting an annual return of 22.1% per annum since its inception 7.6 years ago.
Key contributors to this robust performance included the Predictive Discovery/Robex Resources merger, EQ Resources, Samsung Electronics, and several gold and precious metals stocks like Kingsgate and Endeavour Mining. These positions benefited from a strong gold price tailwind in the first half of FY26. Following a gold price retreat in the second half, Cadence Opportunities Fund strategically reduced its exposure to gold and resource holdings by over 80%, resulting in an elevated cash position by year-end. Detractors included Boss Energy and Amplitude Energy.
The Board declared a 7.5 cents per share fully franked final dividend and a 2.0 cents per share fully franked special dividend, bringing the total full-year dividend to 15.0 cents fully franked. This represents a 7.4% fully franked yield or a 10.5% gross yield, including the special dividend. The company maintains a profit reserve of 73 cents per share, equivalent to over four years of dividends, and 16.2 cents per share in franking credits. Chairman Siegling also noted new investment opportunities in quality businesses experiencing market corrections, leading to positions in CSL, Cochlear, Pro Medicus, and A2 Milk.
