Cadence Opportunities Fund Surges with 36% Half-Year Gain and Boosted Dividend
Cadence Opportunities Fund Limited has reported a remarkable turnaround for the half-year ending December 2025, posting a $6.4 million profit and raising its interim dividend to 7.5 cents per share.
- Revenue jumps 6197% to $11.3 million
- Profit after tax rises to $6.4 million from prior loss
- Interim dividend increased to 7.5 cents, fully franked
- Net tangible asset backing grows to $2.38 per share
- Fund outperforms All Ordinaries Accumulation Index by 31.7%
Strong Financial Turnaround
Cadence Opportunities Fund Limited has delivered a striking financial performance for the half-year ended 31 December 2025, reversing a prior loss to report a profit after tax of $6.42 million. This represents a dramatic improvement from the $271,542 loss recorded in the same period last year, underscoring a successful period of investment and portfolio management.
The fund’s revenue surged by an extraordinary 6197% to $11.33 million, driven primarily by net realised and unrealised gains on investments. This robust top-line growth reflects the fund’s strategic positioning and active management approach in both Australian and international securities markets.
Dividend Increase Signals Confidence
In line with its strong earnings, the Board declared a fully franked interim dividend of 7.5 cents per share, up from 6.5 cents in the prior interim period. The dividend is payable on 30 April 2026, with an ex-dividend date of 15 April 2026. The continuation of the Dividend Reinvestment Plan (DRP) offers shareholders an opportunity to increase their holdings, with the last date for DRP election set for 20 April 2026.
Outperformance and Asset Growth
The fund’s gross performance for the half-year was an impressive +36.1%, outperforming the All Ordinaries Accumulation Index by 31.7%. This outperformance highlights the fund’s effective investment strategy and ability to generate alpha in a competitive market environment.
Net investments increased to $36.6 million from $27.2 million at the previous half-year, while net assets rose to $37.3 million from $32.2 million as at 30 June 2025. The net tangible asset backing per share improved to $2.38, up from $1.99, reflecting enhanced shareholder value.
Capital Management and Governance
Cadence continued its on-market share buy-back program, which commenced in October 2025 and is scheduled to run through October 2026. This initiative aims to support the share price and return capital to shareholders. The company’s governance remains robust, with an independent auditor’s review confirming compliance and no material issues.
Directors Karl Siegling, Wayne Davies, Susan Oakes, and Jolanta Masojada remain at the helm, guiding the fund through a period of strong recovery and growth. The fund’s prime broker BNP Paribas and share registrar Boardroom Pty Limited continue to support its operational infrastructure.
Looking Ahead
While the half-year results are encouraging, the fund’s future performance will depend on market conditions and the continued execution of its investment strategy. The absence of contingent liabilities and the maintenance of a strong balance sheet position the fund well for upcoming challenges and opportunities.
Bottom Line?
Cadence’s strong half-year rebound and dividend hike set the stage for investor optimism, but market volatility remains a watchpoint.
Questions in the middle?
- What sectors or assets drove the fund’s exceptional 36.1% gross performance?
- How will the ongoing on-market share buy-back impact liquidity and share price?
- What risks does the fund face given its increased exposure and international investments?
