Cadence Opportunities Fund Posts 35.9% Gain Year-to-Date with 7.5c Dividend

Fund Performance Dips in March but Strong FY Momentum Continues

Cadence Opportunities Fund (ASX:CDO) faced a challenging March, posting a negative gross return of 16.2%, more than double the 7.3% decline in the All Ordinaries Accumulation Index. Yet this monthly setback belies the fund’s impressive trajectory over the 2026 financial year to date, with a 35.9% gain over nine months, outperforming the benchmark by 34.3%. Post-tax net tangible assets (NTA) even edged up 0.3% during the quarter, reflecting resilience amid market volatility.

Preliminary figures for April suggest a rebound, with the fund up around 8%, pushing estimated pre-tax and post-tax NTAs to $2.60 and $2.50 respectively. This momentum follows a period of strong gains highlighted in the fund’s half-year results, where it delivered a 36% lift and boosted dividends Cadence Opportunities Fund Surges with 36% Half-Year Gain and Boosted Dividend.

Portfolio Adjustments Reflect Cautious Gold Exposure and Critical Minerals Focus

March’s top contributors included Lindian Resources, Pop Mart International (a short position), and EQ Resources. Notably, Pop Mart’s shares plunged 35% after disappointing sales, vindicating the fund’s bearish stance on what it describes as a fad-driven product line. On the downside, Robex Resources, Samsung Electronics, Kingsgate Consolidated, Turaco Gold, Endeavour Mining, and Capstone Copper weighed on returns.

CDO has recently pared back exposure to gold and silver but maintains gold equities as a core theme, citing attractive valuations on cashflow and earnings multiples. The fund is closely watching the merger between Robex Resources and Predictive Discovery, which cleared key conditions in early April. The deal aims to build a West African gold producer targeting over 400,000 ounces annually by 2029. Robex shares have doubled this year and gained 22% in April alone, underscoring investor enthusiasm.

Critical minerals investments also performed well amid geopolitical tensions emphasizing the need for domestic reserves. Lindian Resources is advancing a rare earth mine in Malawi and recently acquired a downstream processing facility in Kazakhstan, leveraging strategic US-Kazakhstan cooperation. Lindian’s binding offtake agreement with Australia’s Iluka Resources further anchors its supply chain position.

Dividend Yield Remains Attractive with Strong Profit Reserves

In February, Cadence declared a fully franked interim dividend of 7.5 cents per share, a 0.5 cent increase from the previous final dividend, representing a 7.1% yield fully franked or a 10.2% gross yield based on the $2.10 announcement share price. The dividend will be paid on 30 April with an ex-date of 15 April.

The fund’s dividend reinvestment plan (DRP) remains active, priced at the weighted average share price during the DRP period, with a buy-back mechanism when shares trade below NTA. Since inception, Cadence has paid $0.77 in dividends ($1.10 including franking), and crucially, retains a profit reserve of 74 cents per share, enough to cover more than four years of dividends at the current rate.

This yield profile is roughly three times that of the All Ordinaries Index, reinforcing Cadence’s appeal to income-focused investors in a low-yield environment.

Investor Resources and Outlook

CEO Karl Siegling recently hosted a webcast updating investors on portfolio composition and the fund’s outlook, discussing holdings such as Samsung, EQ Resources, Guzman Y Gomez, Robex, Endeavour Mining, Many Peaks Minerals, and Cyprium Metals. The webcast and a curated list of investment books are available to deepen investor understanding of Cadence’s approach.

While the March dip highlights the risks inherent in commodity-linked equities and short positions, the fund’s strong FY-to-date performance and robust dividend policy suggest confidence in its strategy. The progress of the Robex-Predictive merger and developments in critical minerals projects will be key catalysts to watch.