Cadence and Pengana lead a week of fund gains as Infratil slips

Cadence Opportunities Fund Limited (ASX:CDO) was the strongest reported mover, rising 6.36% for the week. Pengana International Equities (ASX:PIA) followed with a 5.74% gain. Infratil (ASX:IFT) went the other way, falling -3.91% despite lifting its earnings forecast.

Funds reward income and stock selection

Cadence reported a record $5.66 million after-tax profit and a 30.3% fund return. It sold more than 80% of its gold and resource holdings during the second half. The move leaves the fund with more cash and less exposure to a sudden fall in gold prices. Cadence also offered new shares at $2.21, below the market price, which may have attracted buyers.

Pengana’s rise came after it settled a court case over its proposed buy-back. Antipodes will manage the portfolio after the transaction, while four directors are due to leave. Investors can still withdraw their buy-back elections until 24 September. The agreement removes one major legal obstacle, but shareholders must still assess the new portfolio manager and the final buy-back result.

AI spending lifts forecasts, but prices still matter

Infratil lifted FY27 operational earnings guidance to between NZ$1.32 billion and NZ$1.42 billion. Its data-centre business, CDC, raised its own forecast as contracted capacity reached 1.1 gigawatts. Longroad also increased its 2029 target for renewable power. Even so, Infratil shares fell. Investors may have wanted a larger increase, or may have sold after the strong growth story had already been reflected in the price.

Netwealth is taking a smaller but related step into artificial intelligence. It will pay up to $29 million for advice software business Paradino and invest another $10 million. Paradino already serves more than 500 advisers, but it remains loss-making and expects an FY27 earnings loss of about $3 million. The deal could help advisers prepare work faster. It also adds costs before the business proves it can make money.

Banks and funds change shape

MyState lifted underlying profit by 41.2% to $58.3 million after its Auswide merger produced $11.8 million in annual savings. The full-year dividend rose to 24.5 cents per share. Integration costs have also increased to $32 million. The next test is whether the savings continue after the merger work ends, while technology costs and bad loans remain under control.

Several investment products also changed their structure. Franklin Templeton plans to broaden the FRGG Active ETF from about 30 to 40 holdings to as many as 200, while cutting its fee from 0.90% to 0.60%. The proposed ticker change to FTPG may make the fund easier to understand, but the portfolio switch could create tax bills or a special payment for investors.

JPMorgan’s listed funds continued to grow, although results differed. The Global Research Enhanced Index Equity Trust (ASX:JRH) increased net assets to almost A$2 billion after large gains in its investments. By contrast, the JPMorgan Equity Premium Income ETF saw operating profit fall 91% as investment values declined. Both funds are moving their underlying investments to London-listed vehicles, with fees staying at 0.40% a year.

Capital moves and legal risks remain

L1 Gold Fund (ASX:LGF) completed a retail offer that took its total capital raising to about A$375.4 million. L1 Group added A$42 million at $2.25 per share. The fund still has a second offer open for up to three months. New shares are expected to trade normally from 17 September, so investors will watch whether the larger share count changes the price.

DGR Global (ASX:DGR) was flat for the week, but the quoted weekly figure hides a fall after the stock reopened at $0.034. It then moved 8.82% lower. The Federal Court gave the Takeovers Panel until 30 September to decide whether unacceptable circumstances exist. In simple terms, the legal question remains open, and the final decision could affect shareholders.

Elsewhere, Argo Investments (ASX:ARG) plans four quarterly dividends of 10 cents each during 2027, subject to board approval. WAM Global (ASX:WGB) kept its annual dividend at a high level despite a 4.2% portfolio fall. These results show why income-focused funds can attract investors even when share prices move unevenly.