CADENCE OPPORTUNITIES FUND
LIMITED
A.B.N. 37 627 359 166
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2021
CONTENTS
Company Particulars
Manager’s Report
Top 20 Positions
Directors’ Report to Shareholders
2
3
5
6
Auditor’s Independence Declaration
11
Statement of Profit or Loss and Other Comprehensive Income
12
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
13
14
15
16
33
34
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
COMPANY PARTICULARS
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
DIRECTORS:
SECRETARY:
MANAGER OF THE COMPANY:
REGISTERED OFFICE:
CONTACT DETAILS:
PRIME BROKER:
SHARE REGISTRAR:
AUDITORS:
Karl Siegling
Wayne Davies
Susan Oakes
Wayne Davies
Cadence Asset Management Pty Limited
ABN: 68 106 551 062
Level 11, 131 Macquarie Street
Sydney, NSW 2000
Level 11, 131 Macquarie Street
Sydney, NSW 2000
Telephone: (02) 8298 2450
Fax: (02) 8298 2499
Email:
Website:
info@cadencecapital.com.au
www.cadencecapital.com.au
For enquiries regarding net asset backing refer to
cadencecapital.com.au or call (02) 8298 2450
Deutsche Bank AG
Winchester House,1 Great Winchester Street
London EC2N 2DB
Boardroom Pty Limited
Mail Address: GPO Box 3993, Sydney NSW 2001
Telephone:
Fax:
(02) 9290 9600
(02) 9279 0664
For all enquiries relating to shareholdings, dividends
(including participation in the Dividend Reinvestment
Plan) and related matters, please contact the share
registrar.
Pitcher Partners
Level 16 Tower 2, Darling Park
201 Sussex St
Sydney, NSW 2000
COUNTRY OF INCORPORATION:
Australia
2
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
MANAGER’S REPORT
SUMMARY OF RESULTS
•
•
•
•
•
•
•
•
Record profit before tax of $7,960,519
Record profit after tax of $5,594,046
Record earnings per share of 75.2 cents
Fund gross performance for the past year of +98.4%
Fund gross performance since inception 2.5 years ago of +57.9% per annum
12.0c fully franked Final Dividend and a 3.0c fully franked Special Dividend
Yield of 6.1% fully franked (8.8% gross including franking)
30 June 2021 Post-tax NTA per share of $2.4449
COMPANY PERFORMANCE
The Cadence Opportunities Fund completed the financial year up 98.4%, outperforming the All
Ordinaries Accumulation Index by 68.2% over the same period. Since its inception two and half years
ago, the fund has delivered 213.4% (57.9% per annum) for our shareholders which has been a
pleasing performance. We are focused on implementing our stock selection and scaling process
which seeks to add to winning positions and to cut losers. We believe this will continue to generate
good risk-adjusted returns for our investors through market cycles.
In terms of stock specific contributors, the best performers for the year were Cettire, Podium Minerals,
Uniti Group, Maas Group, Bed Bath & Beyond, Airtasker, Pointsbet and Pinterest. The largest
detractors from performance were Redfin and EML Payments.
DIVIDENDS
The Company announced a 12.0 cents per share fully franked final dividend and a 3.0 cents per share
fully franked special dividend. The total dividend equates to a 6.1% annual fully franked yield, or a
8.8% gross yield (grossed up for franking credits) based on the year end Post-Tax NTA of $2.4449.
The Ex-Date for the dividend is the 22 October 2021 and the payment date for the dividend is the 29
October 2021. The Dividend Re-Investment Plan (“DRP”) is in operation for the final dividend. The
DRP price will be based off the mid-point of the pre and post tax NTA as at the record date less a 3%
discount.
DEEPGREEN
In September 2021, DeepGreen Metals merged with Sustainable Opportunities Acquisition
Corporation (SOAC). The merged entity renamed, TMC The Metals Company Inc. (TMC) and listed
on the NASDAQ on the 10 September 2021. The Company’s investment in DeepGreen Metals was
valued at $0.2 million at 30 June 2021. On the close of the first day of listing of TMC on the NASDAQ
the value of the Company’s TMC position increased to $1.6 million.
MARKET OUTLOOK
The World is slowly coming to terms with Covid 19 with financial markets having largely recovered
from the Covid 19 ‘panic’. Corporate profits have rebounded and in many cases are at all-time highs.
Investor confidence has returned. Western Europe and North America are leading the world in
vaccinations which is allowing their economies to fully re-open. With interest rates expected to remain
at zero, or low, across much of the world, the overall environment remains supportive of equities.
We are finding investment opportunities for the fund across a broad range of sectors, both
domestically and internationally. Opportunity now exists through stock selection rather than ‘all boats
rising in a rising tide.
COMPANY FUTURE
The Board is considering an ASX listing before December 2021. The Board will communicate their
decision to Company shareholders if they decide to list.
3
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
MANAGER’S REPORT (Continued)
SHAREHOLDER COMMUNICATION
As managers of Cadence Opportunities Fund Limited, we aim to provide shareholders with clear and
transparent communication. We do this through monthly investment updates, quarterly webcasts,
investor presentations, market insights, as well as annual and half yearly profit announcements. We
would
at
www.cadencecapital.com.au/cdonewsletter/.
encourage
updates
register
receive
regular
you
to
to
Please feel free to contact us at info@cadencecapital.com.au with any feedback to improve our
communication and engagement with you.
I would like to take this opportunity to thank our investors for their continued support.
Karl Siegling
Managing Director
Cadence Asset Management Pty Limited
4
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
TOP 20 POSITIONS AS AT 30 JUNE 2021
LONG AND SHORT POSITIONS
Long Positions
Company Name Exposure % of
NTO
360
BET
MGH
UWL
ASAN US
CTT
SHOP US
CHN
NVDA US
UPST US
FVRR US
BBBY US
SE US
ECX
CROX US
PDN
CAT
MVF
** A Pre-IPO investment in the Materials sector
Nitro Software Ltd
Life360 Inc
Betmakers Technology Group Ltd
Maas Group Holdings Ltd
Uniti Group Limited
Asana Inc
Cettire Ltd
Shopify Inc
Chalice Gold Mines Ltd
Nvidia Corp
Upstart Holdings Corp
Fiverr International Ltd
Bed Bath & Beyond Inc
Sea Ltd
Eclipx Group Ltd
Crocs Inc
Paladin Energy Ltd
Catapult Group International
Monash IVF Group Ltd
$ Equity
$1,124,700
5.12%
$1,075,480
4.90%
$849,217
3.87%
$840,000
3.82%
$839,843
3.82%
$744,360
3.39%
$733,110
3.34%
$642,831
2.93%
$601,020
2.74%
$586,740
2.67%
$566,213
2.58%
$565,810
2.58%
$554,833
2.53%
$512,587
2.33%
$499,400
2.27%
$466,080
2.12%
$463,500
2.11%
$463,158
2.11%
$399,500
1.82%
Short Positions
Company Name
APX
Appen Ltd
Exposure
$
$666,400
% of
Equity
3.03%
Total Top 20 Long and Short Positions
$11,861,982 54.02%
TOTAL PORTFOLIO POSITIONS:
Portfolio Net Exposure Long Positions
$21,396,111 97.39%
Portfolio Net Exposure Short Positions
$1,735,725 7.90%
Total Portfolio Net Exposure
$19,660,386 89.49%
5
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
DIRECTORS’ REPORT TO SHAREHOLDERS
FOR THE YEAR ENDED
30 JUNE 2021
The Directors of Cadence Opportunities Fund Limited (“the Company”) submit herewith their report together
with the financial report of Cadence Opportunities Fund Limited for the financial year ended 30 June 2021.
PRINCIPAL ACTIVITY
The principal activity of the Company is investing primarily in securities listed both in Australia and
internationally. The Company may take short positions and may also deal in derivatives for hedging
purposes. No significant changes in the nature of these activities occurred during the financial year.
OPERATING RESULTS
Investment operations over the year resulted in an operating profit before tax of $7,960,519 (2020:
$2,194,677) and an operating profit after tax of $5,594,046 (2020: $1,540,980).
REVIEW OF OPERATIONS
Investments are valued continuously to market value. For the year ended 30 June 2021, net investments
were valued at $19,660,386 (2020: $$8,926,145). Further information regarding the performance of the entity
during the reporting period is provided in the Manager’s Report, which precedes this report.
FINANCIAL POSITION
The net asset value of the Company for the current financial year ended was $21,965,936 (2020:
$8,429,424).
DIVIDENDS PAID OR RECOMMENDED
The Board have declared a 12.0 cent per share fully franked final dividend and a 3.0 cent per share fully
franked special dividend payable on 29 October 2021. The Ex-Date for the dividend is the 22 October 2021.
DIRECTORS
The names of the Directors of Cadence Opportunities Fund Limited who held office during or since the end
of the financial year are:
Karl Siegling
Wayne Davies
Susan Oakes
The following persons were Directors of the Company during the financial year and up to the date of this
report:
INFORMATION ON DIRECTORS
Karl Siegling (Chairman)
Karl Siegling has 28 years investment experience in the financial sector both in Australia and overseas. He
holds a Bachelor of Commerce and a Law degree from the University of Melbourne and a MBA from
INSEAD in France. Karl holds a Post Graduate Diploma in Finance with the Securities Institute of Australia
(FINSIA). He commenced work in the Financial Services sector in Australia with Deutsche Morgan Grenfell,
trading overnight currencies, bonds and bond options on the Sydney Futures Exchange. He then worked
within the Equities Research Division of Deutsche Morgan Grenfell before studying a MBA at INSEAD and
working as a Summer Associate within the equities division of Goldman Sachs in London.
Upon returning to Australia, Karl was the Managing Director of eFinancial Capital Limited (a subsidiary of
Challenger international Limited) focused on investing in early stage and expansion capital for financial
services and technology companies. Karl worked as a consultant for Wilson Asset Management, researching
stocks, before setting up Cadence Asset Management Pty Limited.
Karl has been the Chairman and Managing Director of Cadence Asset Management Pty Limited (The
Manager), for 17 and a half years. Karl is also a Director Cadence Opportunities Fund Limited. Karl has been
the Chairman and Managing Director of Cadence Capital Limited for 16 and a half years. Karl has been a
Director of the Company for the past 3 years.
6
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
DIRECTORS’ REPORT TO SHAREHOLDERS
FOR THE YEAR ENDED
30 JUNE 2021
INFORMATION ON DIRECTORS (Continued)
Wayne Davies (Non-Executive Director and Company Secretary)
Wayne Davies has over 19 years funds management experience in Equity Long/Short Funds both in
Australia and overseas. He is both a member of the South African Institute of Chartered Accountants and the
Chartered Institute of Management Accountants. Wayne Davies is a member of the Cadence Asset
Management team and has been the Chief Operating Officer of Cadence Asset Management for the past 14
years. Wayne Davies previously worked with Theorema Asset Management in London and was a director of
Theorema Europe Fund and Theorema Europe Fund Plus. Wayne has been a Director of Cadence Capital
Limited for the past 7 and a half years. Wayne has been a Director of the Company for the past 3 years.
Susan Oakes (Non-executive Director)
Susan Oakes has over 30 years financial services industry experience. Susan has worked in trading room
roles in Sydney, London and New York. Susan is a former director and business head at Merrill Lynch and
has also worked as a risk consultant at the Commonwealth Bank of Australia.
Susan has worked in trading roles at Genesis Proprietary Trading, Phoenix Trading Group, Aliom Holdings
Limited & TransMarket Group. Susan possesses extensive experience and knowledge in trading and
portfolio management. Susan Oakes holds an MBA from the Australian Graduate School of Management,
UNSW, specialising in business risk.
Susan has been a Director of the Company for the past two and a half years.
COMPANY SECRETARY
Wayne Davies held the position of Company Secretary at the end of the financial year.
DIRECTORS’ MEETINGS
No. eligible to attend
Attended
Karl Siegling
Wayne Davies
Susan Oakes
5
5
5
5
5
5
REMUNERATION REPORT
This report details the nature and amount of remuneration for each Director of Cadence Opportunities Fund
Limited.
(a) Remuneration
There are no executives that are paid by the Company. Cadence Asset Management Pty Limited provides
day to day management of the Company and is remunerated as outlined below.
2021
Short-term Employee Benefits -
Directors Fees:
Susan Oakes
Wayne Davies
Cash Salary
Superannuation
$
$
Total
$
1,302
650
1,952
15,000
7,500
22,500
13,698
6,850
20,548
7
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
DIRECTORS’ REPORT TO SHAREHOLDERS
FOR THE YEAR ENDED
30 JUNE 2021
REMUNERATION REPORT (Continued)
(a) Remuneration (Continued)
2020
Short-term Employee Benefits -
Directors Fees:
Susan Oakes
Wayne Davies
Cash Salary
$
Superannuation
$
Total
$
13,698
6,850
20,548
1,302
650
1,952
15,000
7,500
22,500
(b) Director Related Entities Remuneration
All transactions with related entities were made on normal commercial terms and conditions.
Karl Siegling is the sole Director and a beneficial owner of Cadence Asset Management Pty Limited, the
entity appointed to manage the investment portfolio of Cadence Opportunities Fund Limited. In its capacity
as Manager, Cadence Asset Management Pty Limited was paid a management fee of $256,190 (inclusive of
GST) (2020: $106,071). This is equivalent to 0.125% of the value of the portfolio calculated on the last
business day of each month. Over a full year, the monthly management fee will be comparable to a fee of
1.25% of the gross value of the portfolio per annum. As at 30 June 2021, the balance payable to the
Manager was $29,011 (2020:nil). The loan receivable from the Manager (which was provided to the Manager
by the Company in accordance with a loan agreement entered into on or around the date of the Prospectus)
was repaid during the 2021 financial year (refer note 5). As at 30 June 2020 the outstanding Loan to the
Manager was $126,411.
The duties of the manager are to manage the portfolio and to manage and supervise all investments,
maintain the corporate and statutory records of the Company, liaise with the ASX with respect to compliance
with the ASX listing rules, liaise with ASIC with respect to compliance with the Corporations Act and liaise
with the share registrar of the Company.
In addition, Cadence Asset Management Pty Limited is to be paid, annually in arrears, a performance fee,
being 15% (plus GST) of the amount of the increase in the value of the portfolio.
No performance fee is payable in respect of any performance period, where the portfolio has decreased in
value over that period. For the year ended 30 June 2021, $1,721,228 (inclusive of GST) (2020: $459,976).
was payable to Cadence Asset Management Pty Limited. As at 30 June 2021, the balance payable to the
Manager was $1,721,228 (2020: $459,976).
Cadence Asset Management Pty Limited employs accounting personnel to provide accounting services to
Cadence Opportunities Fund Limited. These services are provided on commercial terms and include a
standard charge of $550 (inclusive of GST) per month.
(c) Compensation Practices
The Board from time to time determines remuneration of Non-Executive Directors within the maximum
amount approved by the shareholders. Non-Executive Directors are not entitled to any other remuneration.
Fees and payments to Non-Executive Directors reflect the demands that are made on and the
responsibilities of, the Directors and are reviewed annually by the Board. The Company determines the
remuneration levels and ensures they are competitively set to attract and retain appropriately qualified and
experienced Directors.
8
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
DIRECTORS’ REPORT TO SHAREHOLDERS
FOR THE YEAR ENDED
30 JUNE 2021
REMUNERATION REPORT (Continued)
(d) Shareholdings
Directors’ base fees are presently limited to a maximum of $100,000 per annum between the directors. Non-
Executive Directors do not receive bonuses nor are they issued options on securities. Directors’ fees cover
all main board activities and membership of committees. Directors’ fees are not linked to the performance of
the Company.
As at the date of this report, the Company’s key management personnel indirectly held the following shares
in the Company:
Shareholdings
Karl Siegling
Wayne Davies
Susan Oakes
Acquisitions
Disposals
Balance at
1 July 2020
1,600,001
100,000
1,724,001
24,000
1,139,554
13,736
5,723
1,159,013
-
-
-
-
Balance at
30 June 2021
2,739,555
113,736
29,723
2,883,014
There has been no change to these shareholdings from 30 June 2020 to the date of this report.
End of Remuneration Report.
EVENTS AFTER THE REPORTING PERIOD
In September 2021, DeepGreen Metals merged with Sustainable Opportunities Acquisition Corporation
(SOAC). The merged entity renamed, TMC The Metals Company Inc. (TMC) and listed on the NASDAQ on
the 10 September 2021. The Company’s investment in DeepGreen Metals was valued at $0.2 million at 30
June 2021. On the close of the first day of listing of TMC on the NASDAQ the value of the Company’s TMC
position increased to $1.6 million.
Other than disclosed elsewhere in this report, there has not arisen in the interval between the end of the
financial year and the date of this report any item, transaction or event of material and unusual nature likely,
in the opinion of the Company, to significantly affect the operations of the entity, the results of those
operations, or the state of affairs of the entity, in future financial years.
FUTURE DEVELOPMENTS
The Company will continue to pursue its policy of investment during the next financial year.
The Board is considering an ASX listing before December 2022. The Board will communicate their decision
to Company shareholders if they decide to list.
ENVIRONMENTAL ISSUES
The Company’s operations are not regulated by any environmental regulation under a law of the
Commonwealth or of a State or Territory.
INDEMNIFICATION AND INSURANCE OF OFFICERS OR AUDITORS
During the year the Company paid a premium in respect of a contract insuring the Directors of the Company,
the Company Secretary and any related body corporate against liability incurred as such by a Director or
Secretary to the extent permitted by the Corporations Act 2001.
No indemnities have been given or insurance premiums paid during or since the end of the financial year, for
any person who is or has been an auditor of the Company.
The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
9
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
DIRECTORS’ REPORT TO SHAREHOLDERS
FOR THE YEAR ENDED
30 JUNE 2021
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the
Company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
NON-AUDIT SERVICES
During the year Pitcher Partners, the Company’s auditor, did not perform any other services in addition to
their statutory duties for the Company. Related entities of Pitcher Partners, performed taxation services for
the Company. Details of the amounts paid to the auditors and their related parties are disclosed in Note 2 to
the financial statements.
The Board of Directors, in accordance with advice from the Audit Committee, is satisfied that the provision of
non-audit services during the year is compatible with the general standard of independence for auditors
imposed by the Corporations Act 2001. The Directors are satisfied that the services disclosed in Note 2 did
not compromise the external auditor’s independence for the following reasons:
• all non-audit services do not adversely affect the integrity and objectivity of the auditor; and
•
the nature of the services provided do not compromise the general principles relating to auditor
independence in accordance with the APES 110: Code of Ethics for Professional Accountants
(including Independence Standards).
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the Auditor’s Independence Declaration as required under Section 307C of the Corporations Act
2001 is set out on page 11 of this Annual Report.
Signed in accordance with a resolution of the Board of Directors of the Company:
Karl Siegling
Director
Dated in Sydney, this 27 September 2021
10
Level 16, Tower 2 Darling Park
201 Sussex Street
Sydney NSW 2000
Postal Address
GPO Box 1615
Sydney NSW 2001
p. +61 2 9221 2099
e. sydneypartners@pitcher.com.au
Auditor’s Independence Declaration
To the Directors of Cadence Opportunities Fund Limited
A.B.N. 37 627 359 166
In relation to the independent audit of the financial report of Cadence Opportunities Fund Limited for the
year then ended 30 June 2021, I declare that to the best of my knowledge and belief there have been:
(i) no contraventions of the auditor’s independence requirements of the Corporations Act 2001; and
(ii) no contraventions of APES 110 Code of Ethics for Professional Accountants (including
Independence Standards).
C I Chandran
Partner
Pitcher Partners
Sydney
27 September 2021
Adelaide Brisbane Melbourne Newcastle Perth Sydney
11
Pitcher Partners is an association of independent firms.
An independent New South Wales Partnership. ABN 17 795 780 962. Liability limited by a scheme approved under Professional
Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which
are separate and independent legal entities.
pitcher.com.au
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
INCOME
Net realised and unrealised gain on investments
Dividends received
Interest received
Other income
Total Income
EXPENSES
Finance costs
Management fees
Performance fees
Directors fees
Stock loan fees
Dividends on short positions
Brokerage expenses on share purchases
Registry fees
Legal fees
Custody fees
Audit and taxation fees
Other expenses from ordinary activities
Total Expenses
Note
s
2021
$
10,216,240
72,523
2,046
20,196
10,311,005
(54,918)
(238,723)
(1,603,871)
(22,500)
(6,854)
(495)
(287,006)
(11,756)
(9,307)
(64,825)
(42,173)
(8,058)
(2,350,486)
2
2020
$
2,919,153
68,178
8,904
4,092
3,000,327
(29,038)
(98,839)
(428,614)
(22,500)
(2,637)
(6,705)
(115,743)
(4,127)
(1,886)
(57,148)
(29,473)
(8,940)
(805,650)
Profit before income tax
7,960,519
2,194,677
Income tax expense
Profit attributable to members of the Company
3(a)
11
(2,366,473)
5,594,046
(653,697)
1,540,980
Other comprehensive income
Other comprehensive income for the year, net of tax
-
-
Total comprehensive income for the year
5,594,046
1,540,980
Basic earnings per share
Diluted earnings per share
13
13
75.2 cents
31.5 cents
75.2 cents
31.5 cents
The accompanying notes form part of these financial statements.
12
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
ASSETS
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit or loss
Deferred tax asset
TOTAL ASSETS
LIABILITIES
Cash overdrafts
Trade and other payables
Financial liabilities at fair value through profit or loss
Current tax liability
Deferred tax liability
Note
12(a)
5
6
3(b)
12(a)
7
8
3(d)
3(c)
2021
$
11,404,356
3,036,586
21,396,111
14,572
2020
$
2,679,294
653,968
9,842,520
6,303
35,851,625
13,182,085
7,491,825
3,220,591
1,735,725
611,359
826,189
1,898,516
1,238,497
916,375
296,948
402,325
TOTAL LIABILITIES
13,885,689
4,752,661
NET ASSETS
EQUITY
Issued capital
Profits reserve
TOTAL EQUITY
21,965,936
8,429,424
9
10
14,848,568
7,117,368
6,595,050
1,834,374
21,965,936
8,429,424
The accompanying notes form part of these financial statements.
13
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 17 112 870 096
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Issued capital
Note
$
Retained
Profits
$
Profits
reserve
$
Total equity
$
Balance at 30 June 2019
5,560,050
-
293,394
5,853,444
Profit for the year
Transfer to profits reserve
Other comprehensive income
for the year
Transactions with owners:
Shares issued
Balance at 30 June 2020
Profit for the year
Transfer to profits reserve
Other comprehensive income
for the year
Transactions with owners:
Net shares issued
Dividends paid
Balance at 30 June 2021
11
10
9
11
10
9
4
-
-
-
1,540,980
-
1,540,980
(1,540,980)
1,540,980
-
-
1,035,000
18,294,586
-
-
6,595,050
18,294,586
-
1,035,000
1,834,374
8,429,424
-
-
-
8,253,518
-
14,848,568
5,594,046
-
5,594,046
(5,594,046)
5,594,046
-
-
8,253,518
(311,052)
(311,052)
7,117,368
21,965,936
-
-
-
-
-
-
-
-
-
-
The accompanying notes form part of these financial statements.
14
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
Note
2021
$
2020
$
CASH FLOWS FROM OPERATING ACTIVITIES
Proceeds from the sale of investments
Payments for the purchase of investments
138,001,697
(140,542,923)
55,632,421
(56,145,882)
Dividends received
Interest received
Other income received
Performance fees paid
Management fees paid
Brokerage expenses on share purchases
Interest paid
Dividends paid on shorts
Payments for other expenses
Income tax paid
NET USED IN OPERATING ACTIVITIES
12(b)
CASH FLOWS FROM FINANCING ACTIVITIES
71,188
8,904
4,092
(51,745)
-
(115,743)
(29,038)
(6,705)
(164,252)
(58,608)
70,340
2,046
20,196
-
(342,619)
(83,300)
(287,006)
(54,918)
(495)
(257,262)
(1,627,621)
(
7
(
0
2
(
6
,
1
,
4
0
3
(
2
,
1
5
0
4
0
,
,
2
)
4
5
0
2
9
,
2
1
3
,
)
0
6
0
4
)
6
)
(5,101,865)
(855,368)
Proceeds from shares issued 8,544,670
Dividends paid (311,052)
1,035,000
-
NET CASH PROVIDED BY
FINANCING ACTIVITIES
8,233,618
1,035,000
NET INCREASE IN CASH HELD
3,131,753
179,632
CASH AND CASH EQUIVALENTS AS AT
BEGINNING OF THE FINANCIAL YEAR
CASH AND CASH EQUIVALENTS AS AT
END OF THE FINANCIAL YEAR
12(a)
6
0
1
,
1
4
6
780,778
601,146
3,912,531
780,778
The accompanying notes form part of these financial statements.
15
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations, issued by the Australian Accounting Standards Board (‘AASB’) and the
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply
with International Financial Reporting Standards as issued by the International Accounting Standards Board
('IASB').
Material accounting policies adopted in the preparation of these financial statements are presented below.
They have been consistently applied unless otherwise stated.
The financial statements have been prepared under the historical cost convention, except for, where
applicable, cash flow information, “held-for-trading” financial assets and certain other financial assets and
liabilities, which have been measured at fair value.
The preparation of the financial statements requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Company’s accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements are disclosed in Note 1(i).
The financial report was authorised for issue on 27 September 2021 by the Board of Directors.
Accounting Policies
(a) Investments
i) Classification
Investments consist of shares in publicly listed and unlisted companies and fixed interest securities.
Financial assets are classified ‘at fair value through profit or loss’ when they are held for trading for the
purpose of short-term profit taking. Realised and unrealised gains and losses arising from changes in fair
value are included in the Statement of Profit or Loss and Other Comprehensive Income in the period in which
they arise.
The Company makes short sales in which a borrowed security is sold in anticipation of a decline in the
market value of that security, or it may use short sales for various arbitrage transactions. Short sales are
classified as financial liabilities at fair value through the profit or loss.
ii) Recognition and Initial Measurement
Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity
becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for
financial assets that are delivered within timeframes established by marketplace convention. Trade date is
the date on which the Company commits to purchase or sell the assets.
Financial instruments are initially measured at fair value plus transactions costs where the instrument is not
classified as at fair value through profit or loss. Transaction costs related to instruments classified as at fair
value through profit or loss are expensed to the profit or loss immediately.
Financial assets are classified and measured at fair value with changes in value being recognised in the
profit or loss.
16
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(a) Investments (Continued)
iii) Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is
transferred to another party whereby the entity no longer has any significant continuing involvement in the
risks and benefits associated with the asset. Financial liabilities are derecognised where the related
obligations are either discharged, cancelled or expire. The difference between the carrying value of the
financial liability extinguished or transferred to another party and the fair value of consideration paid,
including the transfer of non-cash assets or liabilities assumed, is recognised in the profit or loss.
iv) Valuation
All investments are classified and measured at fair value, being market value, including the potential tax
charges that may arise from the future sale of the investments. These fair value adjustments are recognised
in the profit or loss. Valuation techniques are applied to determine the fair value for all unlisted securities,
including recent arm’s length transactions and reference to similar instruments.
v) Investment Income
Dividend income is recognised in the profit or loss on the day on which the relevant investment is first quoted
on an “ex-dividend” basis.
Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.
vi) Derivative Instruments
Derivative instruments are measured at fair value. Gains and losses arising from changes in fair value are
taken to the profit or loss.
vii) Financial Liabilities
Borrowed stock is classified as financial liabilities at fair value through the profit or loss. Realised and
unrealised gains and losses arising from changes in fair value are included in the profit or loss in the year in
which they arise.
(b) Income Tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on
the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods,
where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply
when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or
substantively enacted, except for:
• When the deferred income tax asset or liability arises from the initial recognition of goodwill or an
asset or liability in a transaction that is not a business combination and that, at the time of the
transaction, affects neither the accounting nor taxable profits; or
• When the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal can be controlled and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
17
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(b) Income Tax (Continued)
The carrying amount of recognised and unrecognised deferred tax assets are reviewed each reporting date.
Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable
profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets
are recognised to the extent that it is probable that there are future taxable profits available to recover the
asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current
tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate
to the same taxable entity or different taxable entity's which intend to settle simultaneously.
(c) Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other
short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For
the statement of cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts,
which are shown within the current liabilities on the statement of financial position.
(d) Trade and Other Receivables
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised
cost using the effective interest method, less provision for expected credit loss. Trade and other receivables
are generally due for settlement within 30 days. They are presented as current assets unless collection is not
expected for more than 12 months after the reporting date.
(e) Trade and Other Payables
These amounts represent liabilities for outstanding settlements as well as services provided to the Company
prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured
at nominal amounts and are not discounted. The amounts are unsecured and are usually paid within 30 days
of recognition. The carrying amount of trade and other payables represent their fair value.
(f) Impairment
At each reporting date, the Company shall measure the loss allowance on financial assets at amortised cost
(cash, due from broker and receivables) at an amount equal to the lifetime expected credit losses if the credit
risk has increased significantly since initial recognition. If, at the reporting date, the credit risk has not
increased significantly since initial recognition, the Company shall measure the loss allowance at an amount
equal to 12-month expected credit losses. Significant financial difficulties of the counter party, probability that
the counter party will enter bankruptcy or financial reorganisation, and default in payments are all considered
indicators that a loss allowance may be required. If the credit risk increases to the point that it is considered
to be credit impaired, interest income will be calculated based on the gross carrying amount adjusted for the
loss allowance. A significant increase in credit risk is defined by management as any contractual payment
which is more than 30 days past due. Any contractual payment which is more than 90 days past due is
considered credit impaired.
(g) Segment Reporting
The Company has only one segment. The Company operates predominately in Australia and in one industry
being the securities industry, deriving revenue from dividend income, interest income and from the sale of its
financial assets at fair value through profit or loss, however the Company has foreign exposures as it invests
in securities which are listed Internationally.
(h) Comparative Figures
Where required by accounting standards, comparative figures have been adjusted to conform with changes
in presentation for the current financial year.
18
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(i) Critical Accounting Estimates and Judgements
The Directors evaluate estimates and judgements incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the
Company.
Income tax
The entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement is
required in determining the provision for income tax. There are many transactions and calculations
undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The
Company recognises liabilities for anticipated tax audit issues based on the Company’s current
understanding of the tax law. Where the final tax outcome of these matters is different from the carrying
amounts, such differences will impact the current and deferred tax provisions in the period in which such
determination is made.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the Company considers it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Future taxable amounts are determined based on the historical performance of the Company. Deferred tax
assets are reviewed at each reporting period.
There are no estimates or judgements that have a material impact on the Company’s financial results for the
period ended 30 June 2021 (2020: none). All material financial assets are valued by reference to quoted
prices and therefore no significant estimates or judgements are required in respect of their valuation.
(j) Issued Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
(k) Profits Reserve
The profits reserve is made up of amounts transferred from current and retained earnings that are preserved
for future dividend payments.
(l) Dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of the
Company.
(m) New and amended standards adopted by the Company
There are no standards, interpretations or amendments to existing standards that are effective for the first
time for the financial year beginning on or after 1 July 2020 that will have a material impact on the accounts
recognised in the prior periods or will affect the current or future periods.
(n) New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 January 2021, and have not been early adopted in preparing these financial statements.
None of these are expected to have a material effect on the financial statements of the Company.
19
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2. AUDITOR’S REMUNERATION
Remuneration of the auditor of the Company for:
Audit and review the financial report
Non-audit Services
Other services provided by a related practice of the auditor:
Taxation services
2021
$
2020
$
27,026
23,621
15,147
42,173
5,852
29,473
3. TAXATION
(a) Current Income Tax Expense
The prima facie tax on profit from ordinary activities before
income tax is reconciled to the income tax expense as follows:
Prima facie tax expense on profit from ordinary activities before
income tax at 30%
Imputation credit gross up
Franked dividends receivable – prior year
Franked dividends receivable – current year
Change in corporate tax rate
Other
Prior year under/ (over)
2,388,157
(15,228)
389
-
-
(6,000)
(845)
2,366,473
658,403
(15,440)
1,875
(389)
8,898
350
-
653,697
Effective tax rate
30.0%
30.0%
The effective tax rate for FY2020 is 30.0% reflecting the benefit to the Company of franking credits received on
dividend income during the year.
Total income tax expense results in a:
Current tax (asset)/ liability
Movement in deferred tax assets/liabilities
(b) Deferred Tax Asset
Provisions
Capitalised share issue costs
Movement in deferred tax asset
Balance at the beginning of the year
Credited to the profit or loss
Charged to equity
20
611,358
1,755,115
2,366,473
7,494
7,078
14,572
6,303
1,191
7,078
14,572
355,556
298,141
653,697
6,303
-
6,303
-
6,303
-
6,303
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
3. TAXATION (Continued)
(c) Deferred Tax Liability
Provisions
Fair value adjustments
Movement in deferred tax liability
Balance at the beginning of the year
Debited to the profit or loss
(d) Current Tax Liability
Movement in current tax liability
Balance at the beginning of the year
Current year income tax on operating profit
Income tax paid
Prior year under/(over)
2021
$
2020
$
1,627
824,562
826,189
402,325
423,864
826,189
296,948
1,942,876
(1,627,621)
(844)
611,359
583
401,742
402,325
97,881
304,444
402,325
-
355,556
(58,608)
-
296,948
4. DIVIDENDS
(a) Dividends paid by the Company
6.0 cents per share final dividend fully franked paid 16 October
2020.
Subsequent to 30 June 2021, the Board have declared a 12.0 cent per share fully franked final dividend and a
3.0 cent per share fully franked special dividend payable on 29 October 2021. The Ex-Date for the dividend is
the 22 October 2021.
311,052
-
(b) Dividend franking account
Balance of franking account at year end adjusted for franking
credits, arising from payment of provision for income tax and
dividends recognised as receivables and franking credits that
may be prevented from distribution in subsequent financial
years.
2,219,127
91,701
Subsequent to the reporting period, the franking account would be reduced by the proposed dividend
disclosed in (a) above. The Company’s ability to continue to pay franked dividends is dependent upon the
receipt of franked dividends from investments and the Company paying tax. The balance of the franking
account does not include the tax to be paid on unrealised investment gains and accrued income currently
recognised as a deferred tax liability of $826,189. (2020: $402,325)
5. TRADE AND OTHER RECEIVABLES
Trade debtors
Income receivable
GST receivable
Miscellaneous receivable
Loan receivable
2,888,451
5,423
137,212
5,500
-
3,036,586
473,605
3,240
50,711
-
126,412
653,968
21
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
5. TRADE AND OTHER RECEIVABLES (Continued)
Terms and Conditions
Trade debtors relate to outstanding settlements, are non-interest bearing and are secured by the Australian
Securities Exchange – National Guarantee Fund. They are settled within 2 days of the purchase being
executed. Income receivable relates to accrued income, it is non-interest bearing and is unsecured.
The Loan Receivable was the outstanding loan recorded as a receivable from the Manager as a
consequence of the Manager Loan which was provided to the Manager by the Company in accordance with
a loan agreement entered into on or around the date of the Prospectus.
Trade and other receivables are not past due or impaired and are of a good credit quality, therefore no
expected credit loss has been recognised.
6. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Long positions - held for trading financial assets
Listed Investments at fair value
Unlisted Investments at fair value
7. TRADE AND OTHER PAYABLES
Trade creditors
Sundry creditors - related parties
Sundry creditors - other
2021
$
21,201,634
194,477
21,396,111
1,143,098
1,750,788
326,705
3,220,591
2020
$
9,631,255
211,265
9,842,520
751,476
460,526
26,495
1,238,497
Trade creditors relate to outstanding settlements. They are non-interest bearing and are secured by the
Australian Securities Exchange – National Guarantee Fund. They are settled within 2 days of the purchase
being executed.
Sundry creditors – related parties, includes fees payable of $1,750,788 (inclusive of GST) (2020: $460,526)
to the manager, Cadence Asset Management Pty Limited.
Sundry creditors – other, are settled within the terms of payment offered, which is usually within 30 days.
8. FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
Short positions – Listed Investments at fair value
1,735,725
1,735,725
916,375
916,375
9. ISSUED CAPITAL
(a) Paid-up Capital
Ordinary shares fully paid
Share issue transaction costs
Deferred tax asset on share issue transaction costs
14,869,214
(29,494)
8,848
14,848,568
6,595,050
-
-
6,595,050
22
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
9. ISSUED CAPITAL (Continued)
(a) Paid-up Capital (Continued)
2021
Date
Balance at the beginning
of the year
1 September 2020
1 October 2020
1 November 2020
1 December 2020
1 January 2021
16 January 2021
1 March 2021
1 April 2021
1 June 2021
Details
Placement
Placement
Placement
Placement
Placement
Buy-Back
Placement
Placement
Placement
2020
Date
Balance at the beginning
of the year
1 October 2019
1 November 2019
1 December 2019
1 January 2020
Details
Placement
Placement
Placement
Placement
Share Price
$
No. of
Shares
Issue value
$
$2.048
$2.066
$2.061
$2.184
$2.234
$2.291
$2.377
$2.389
$2.559
5,135,367
48,840
24,207
1,143,554
2,503,613
223,804
(214,139)
42,065
41,853
35,176
8,984,340
6,595,050
100,000
50,000
2,356,865
5,467,891
500,000
(490,592)
100,000
100,000
90,000
14,869,214
Share Price
$
No. of
Shares
Issue value
$
$1.490
$1.500
$1.535
$1.530
4,447,962
3,356
570,000
100,977
13,072
5,135,367
5,560,050
5,000
855,000
155,000
20,000
6,595,050
Holders of ordinary shares are entitled to receive dividends as declared from time to time, and are entitled to
one vote per share at shareholder meetings, otherwise each member present at a meeting or by proxy has
one vote on a show of hands. In the event of the winding up of the Company, ordinary shareholders rank
after creditors and share in any proceeds on winding up in proportion to the number of shares held.
(b) Capital Management
Management controls the capital of the Company in order to maintain a good debt to equity ratio, provide the
shareholders with adequate returns and ensure that the Company can fund its operations and continue as a
going concern. The Company’s debt and capital includes ordinary share capital and financial liabilities,
supported by financial assets.
Management effectively manages the Company’s capital by assessing the Company’s financial risks and
adjusting its capital structure in response to changes in these risks and in the market. These responses
include the management of debt levels, distributions to shareholders and share issues. There has been no
change in the strategy adopted by the Board to control the capital of the Company. The Company is not
subject to any externally imposed capital requirements.
10. PROFITS RESERVE
Profits Reserve
Movement in Profits Reserve
Opening balance
Transfer from retained earnings
Dividends paid
2021
$
7,117,368
2020
$
1,834,374
1,834,374
5,594,046
(311,052)
7,117,368
293,394
1,540,980
-
1,834,374
The Profit Reserve is made up of amounts transferred from current and retained earnings that are preserved
for future dividend payments.
23
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
11. RETAINED EARNINGS
Opening balance
Profit attributable to members of the Company
Transfer to profits reserve
2021
$
-
5,594,046
(5,594,046)
-
2020
$
-
1,540,980
(1,540,980)
-
12. CASH FLOW INFORMATION
(a) Reconciliation of cash
Cash at the end of the year as shown in the Statement of Cash Flows is reconciled to the related items in the
Statement of Financial Position as follows:
Cash and cash equivalents
Cash overdrafts
11,404,356
(7,491,825)
3,912,531
2,679,294
(1,898,516)
780,778
The weighted average interest rate for cash and cash equivalents as at June 2021 is 0.04% (June 2020:
0.09%). The weighted average interest rate for cash overdrafts as at June 2020 is 0.95% (June 2020:
1.00%). The Company has Prime Brokerage facilities, including lending, and Custody arrangements with
Deutsche Bank AG. The Prime Brokerage facilities are secured by a first charge over the financial assets of
the Company.
The Company has granted a charge over all of the Company’s right, title and interest in the assets
transferred to the Prime Broker. This includes those transferred to the Custodians and sub-custodians in
accordance with Prime Brokerage Agreements, and any right which arises after the date of the charges to
receive cash or return of property from the parties under the Prime Brokerage Agreement, as security for
payments and performance by the Company of all of its obligations to the Prime Brokers under the Prime
Brokerage Agreement.
(b) Reconciliation of Operating Profit after Income Tax
Operating profit after income tax
Movement in fair value on financial assets and liabilities
5,594,046
(10,734,241)
1,540,980
(4,036,424)
Changes in assets and liabilities:
Increase in trade and other receivables
Increase in trade and other payables
Increase in current tax liability
Increase in deferred tax asset
Increase in deferred tax liability
Net cash used in by Operating Activities
13. EARNINGS PER SHARE
Basic earnings per share
(2,509,030)
1,808,506
314,411
(8,269)
432,712
(5,101,865)
2021 Cents
per share
75.2
2021
$
(78,660)
1,123,247
296,948
(6,303)
304,444
(855,368)
2020 Cents
per share
31.5
2020
$
Profit after income tax used in the calculation of
earnings per share
5,594,046
1,540,980
24
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
13. EARNINGS PER SHARE (Continued)
2021
No.
2020
No.
Weighted average number of ordinary shares outstanding
during the year used in calculation of basic earnings per share
7,436,796
4,893,522
Weighted average number of ordinary shares and options
outstanding during the year used in calculation of
diluted earnings per share
Reconciliation of weighted average number of shares:
Weighted average number of ordinary shares used in calculation
of basic earnings per share
Add:
7,436,796
4,893,522
7,436,796
4,893,522
Weighted average number of potential ordinary shares used in
the calculation of diluted earnings per share
-
-
Weighted average number of shares used in the calculation of
diluted earnings per share
7,436,796
4,893,522
14. FINANCIAL RISK MANAGEMENT
Financial Risk Management Policies
The Company’s financial instruments consist of money market instruments, short and long term investments,
accounts receivable and payable.
Financial Risk Exposures and Management
The main risks the Company is exposed to through its financial instruments are interest rate risk, liquidity
risk, credit risk, foreign currency risk and market price risk.
(a) Terms, Conditions and Accounting Policies
The Company’s accounting policies are included in Note 1, while the terms and conditions including interest
rate risk of each class of financial asset, financial liability and equity instrument, both recognised and
unrecognised at balance date are included under the appropriate note for that instrument.
(b) Credit Risk
The Company takes on exposure to credit risk, which is the risk that a counterparty (prime broker, custodian,
sub-custodian and broker) will be unable to pay amounts in full when due. The maximum exposure to credit
risk by class of recognised financial assets at the end of the reporting period excluding the value of any
collateral or other security held, is equivalent to the carrying amount and classification of those financial
assets (net of any provisions) as presented in the statement of financial position.
All transactions in listed securities are settled /paid for upon delivery using approved brokers. The risk of
default is considered minimal, as delivery of securities sold is only made once the broker has received
payment. Payment is made on a purchase once the securities have been received by the broker. The trade
will fail if either party fails to meet their obligation.
There are risks involved in dealing with custodians or prime brokers who settle trades. Under certain
circumstances, including certain transactions where the Company’s assets are pledged as collateral for
leverage from a prime broker/custodian, or where the Company’s assets are held at a prime broker,
custodian or sub-custodian, the securities and assets deposited with the prime broker/custodian may be
exposed to a credit risk with regards to such parties. In addition, there may be practical or timing problems
associated with enforcing the Company’s rights to its assets in case of an insolvency of any such party.
25
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
14. FINANCIAL RISK MANAGEMENT(Continued)
(b) Credit Risk (Continued)
The Company maintains Prime Brokerage facilities, including lending, and Custody facilities with its prime
broker and custodian Deutsche Bank AG. There is no guarantee that these or any sub-custodian that
Deutsche Bank AG may use or any other prime broker or custodian that the Company may use from time to
time, will not become insolvent. In the event of an insolvency or liquidation of a prime broker or custodian
that is being used by the Company, there is no certainty that the Company would not incur losses due to its
assets being unavailable for a period of time or ultimately less than full recovery of its assets, or both. As
substantially all of the Company’s assets may be held by a prime broker, custodian or sub-custodian and in
some cases a major Australian bank, such losses could be significant and materially impair the ability of the
Company to achieve its investment objective.
Any cash held by Deutsche Bank AG is not treated as client money, but rather held as collateral and is not
subject to the client monies protections conferred by the Financial Conduct Authority rules relating to client
money. As a consequence, the Company’s money is held by the Prime Broker as banker and not as a
trustee or agent and the Prime Broker will not be required to place the Fund’s money in a segregated client
account, and the Company will therefore rank equally with Deutsche Bank AG’s other account holders in
relation thereto.
(c) Liquidity Risk
Liquidity risk represents the risk that an entity will encounter difficulty in meeting obligations associated with
financial liabilities. The Company’s major cash outflows are the purchase of securities and dividends paid to
shareholders, the levels of which are managed by the Board and the management company. The
Company’s inward cash flows depend upon the level of sales of securities, dividends, interest received and
any exercise of options that may be on issue.
The Company monitors its cashflow requirements daily by reference to known transactions to be paid or
received. The Company may hold a portion of its portfolio in cash and short-term fixed interest securities
sufficient to ensure that it has cash available to meet all payments. Alternatively, the Company can increase
its level of sales of the readily tradeable securities it holds to increase cash inflows or it can use its lending
facility with its Prime Broker.
(d) Market Price Risk
Market price risk represents the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices. By its nature, as an investment company that invests in
tradeable securities, the Company will always be subject to market price risk as it invests its capital in
securities which are not risk free as the market price of these securities can fluctuate.
The Company can seek to reduce market price risk by not being overly exposed to one company or one
particular sector of the market. The Company does not have set parameters as to a minimum or maximum
amount of the portfolio that can be invested in a single company or sector.
(e) Foreign Currency Risk
The Company undertakes certain transactions and holds assets and liabilities denominated in currencies
other than Australian Dollar (AUD), the reporting currency of the Company. The Company is therefore
exposed to currency risk, as the value of the assets and liabilities denominated in other currencies will
fluctuate due to changes in exchange
rates.
The following table summarises the net amount of assets and liabilities which are denominated in currencies
that the Company is significantly exposed to:
26
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
14. FINANCIAL RISK MANAGEMENT (Continued)
(e) Foreign Currency Risk (Continued)
2021 2020
United States Dollar
Net Denominated Net Assets
USD$175,007
USD$253,806
AUD/USD Exchange Rate as at 30 June 2021: $0.7500 (2020: $0.6904)
The maximum exposure to credit risk on financial assets, excluding investments, of the Company which have
been recognised on the Statement of Financial Position, is the carrying amount. The Company is not
materially exposed to any individual credit risk.
(f) Interest Rate Risk
Any excess cash and cash equivalents of the Company are invested at short-term market interest rates.
Floating rate instruments expose the Company to cash flow risk, whereas short term fixed rate instruments
expose the Company to interest rate risk. Excess cash and cash equivalent balances are monitored closely
and can be moved into short-term bank bills or fixed term deposits.
(g) Financial instrument composition and maturity analysis
The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed
period of maturity, as well as the Company’s expectations of the settlement period for all other financial
instruments. As such, the amounts may not reconcile to the Statement of Financial Position.
2021
Weighted
Average
Interest Rate
Interest Bearing
More than
1 year
$
Less than
90 days
$
Non-interest
bearing
$
Total
$
-
-
-
-
-
-
-
-
-
-
21,396,111
-
2,888,451
148,135
24,432,697
21,396,111
11,404,356
2,888,451
148,135
35,837,053
1,735,725
-
1,143,098
2,077,493
1,735,725
7,491,825
1,143,098
2,077,493
4,956,316
12,448,141
Assets
Financial assets
Cash and cash equivalents
Trade Debtors(<90 days)
Other receivables
Total assets
-
11,404,356
-
-
11,404,356
-
0.04%
-
-
Liabilities
Financial liabilities
Cash overdrafts
Trade Creditors(<90 days)
Other payables
-
7,491,825
-
-
-
0.95%
-
-
Total liabilities
7,491,825
27
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
14. FINANCIAL RISK MANAGEMENT (Continued)
(g) Financial instrument composition and maturity analysis (Continued)
2020
Interest Bearing
Weighted
Average
Interest Rate
Less than
90 days
$
More than 1
year
$
Non-interest
bearing
$
Total
$
Assets
Financial assets
Cash and cash equivalents
Trade Debtors(<90 days)
Other receivables
Total assets
-
2,679,294
-
-
2,679,294
-
0.09%
-
-
Liabilities
-
Financial liabilities
1,898,516
Cash overdrafts
-
Trade Creditors(<90 days)
-
Other payables
-
1.00%
-
-
Total liabilities
1,898,516
-
-
-
-
-
-
-
-
-
-
9,842,520
-
473,605
180,363
10,496,488
9,842,520
2,679,294
473,605
180,363
13,175,782
916,375
-
751,476
487,021
916,375
1,898,516
751,476
487,021
2,154,872
4,053,388
Other payables are expected to be paid as follows:
- Less than 6 months
- 6 months to one year
(h) Financial Instruments Measured at Fair Value
2021
$
2,077,493
-
2020
$
487,021
-
AASB 13: Fair Value Measurement requires the disclosure of fair value information using a fair value
hierarchy reflecting the significance of the inputs in making the measurements. The fair value hierarchy
consists of the following levels:
Level 1:
Quoted prices in active markets for identical assets or liabilities.
Level 2:
Level 3:
inputs).
Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability either directly (as prices) or indirectly (derived from prices).
Inputs for the asset or liability are not based on observable market data (unobservable
Included within Level 1 of the hierarchy are listed investments. The fair values of these financial assets and
liabilities have been based on the closing quoted last prices at the end of the reporting period, excluding
transaction costs.
Investments included in Level 2 of the hierarchy include amounts in relation to Contracts for Difference,
Financial Liabilities, Initial Public Offerings and Placements in which the Company has subscribed to during
the year. The fair value of Contracts for Difference and Financial Liabilities have been determined using
market inputs of the underlying investments. Initial Public Offerings and Placements are investments that
have not listed on the Australian Stock Exchange as at 30 June 2021 and therefore represent investments in
an inactive market. In valuing unlisted investments, included in Level 2 of the hierarchy, the fair value has
been determined using the valuation technique of the quoted subscription price and the amount of securities
subscribed for by the Company under the relevant offers.
28
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
14. FINANCIAL RISK MANAGEMENT (Continued)
(h) Financial Instruments Measured at Fair Value
30 June 2021
Financial assets
Financial liabilities
Total
30 June 2020
Financial assets
Financial liabilities
Total
Level 1
$
20,451,635
(1,735,725)
18,715,910
Level 2
$
749,999
-
749,999
Level 3
$
Total
$
194,477
-
194,477
21,396,111
(1,735,725)
19,660,386
Level 1
$
9,631,255
(916,375)
Level 2
$
-
-
Level 3
$
211,265
-
Total
$
9,842,520
(916,375)
8,714,880
-
211,265
8,926,145
Level 3 asset class is made of a pre-IPO investment. DeepGreen Metals Inc is valued at the weighted
average cost of purchases. DeepGreen Metals merged with Sustainable Opportunities Acquisition
Corporation (SOAC) and listed on the NASDAQ on 10 September 2021 under the name TMC The Metals
Company Inc. Refer to Note 17 of the financial statements for further information.
(i) Sensitivity Analysis
The Company has performed a sensitivity analysis relating to its exposure to interest rate risk, foreign
currency risk and market price risk at balance date. This sensitivity analysis demonstrates the effect on the
current year results and equity which could result from a change in these risks.
Interest Rate Sensitivity Analysis
The sensitivity analyses below have been determined based on the Company’s exposure to interest rates at
the reporting date and the stipulated change taking place at the beginning of the financial year and held
constant through the reporting period. The effect on profit and equity as a result of changes in the interest
rate, with all other variables remaining constant would be as follows:
Change in profit before tax
- Increase in interest rate by 1%
- Decrease in interest rate by 1%
Change in equity
- Increase in interest rate by 1%
- Decrease in interest rate by 1%
2021
$
2020
$
(41,126) (1,639)
41,126 1639
(28,789) (1,148)
28,789 1,148
Foreign Currency Risk Sensitivity Analysis
At 30 June 2021, the effect on profit and equity as a result of changes in the foreign currency risk, with all
other variables remaining constant would be as follows:
Change in profit before tax
- Depreciation of the AUD by 2%
- Appreciation of the AUD by 2%
Change in equity
- Depreciation of the AUD by 2%
- Appreciation of the AUD by 2%
2021
$
2020
$
(802)
802 3,601
(3,601)
(562)
562 2,521
(2,521)
29
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
14. FINANCIAL RISK MANAGEMENT (Continued)
(i) Sensitivity Analysis (Continued)
Market Price Risk Sensitivity Analysis
At 30 June 2021, the effect on profit and equity as a result of changes in the market price risk, with all other
variables remaining constant would be as follows:
Change in profit before tax
- Increase in market price by 2%
- Decrease in market price by 2%
Change in equity
- Increase in market price by 2%
- Decrease in market price by 2%
2021
$
2020
$
393,208 178,523
(393,208) (178,523)
275,245 124,966
(275,245) (124,966)
15. KEY MANAGEMENT PERSONNEL COMPENSATION
The names and position held of the Company’s key management personnel (including Directors) in office at
any time during the financial year are:
Karl Siegling
Wayne Davies
Susan Oakes
(a) Remuneration
Chairman
Non-Executive Director and Company Secretary
Non-Executive Director
There are no executives that are paid by the Company. Cadence Asset Management Pty Limited, the
investment manager of the Company provides day to day management of the Company and is remunerated
as outlined in Note 16 – Related Party Transactions.
Short-term Employee Benefits - Directors’ Fees
Post-employment Benefits - Superannuation
(b) Compensation Practices
2021
2020
$
$
20,548
1,952
22,500
20,548
1,952
22,500
The Board from time to time determines remuneration of Non-Executive Directors within the maximum
amount approved by the shareholders. Non-Executive Directors are not entitled to any other remuneration.
Fees and payments to Non-Executive Directors reflect the demands that are made on, and the
responsibilities of, the Directors and are reviewed annually by the Board. The Company determines the
remuneration levels and ensures they are competitively set to attract and retain appropriately qualified and
experienced Directors.
Directors’ base fees are presently limited to a maximum of $100,000 per annum between the Directors. Non-
Executive Directors do not receive bonuses nor are they issued options on securities. Directors’ fees cover
all main board activities and membership of committees. Directors’ fees are not linked to the performance of
the Company.
30
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
15. KEY MANAGEMENT PERSONNEL COMPENSATION (Continued)
As at 30 June 2021, the Company’s key management personnel indirectly held the following shares in the
Company:
Shareholdings
Karl Siegling
Wayne Davies
Susan Oakes
Acquisitions
Disposals
Balance at
1 July 2020
1,600,001
100,000
1,724,001
24,000
1,139,554
13,736
5,723
1,159,013
-
-
-
-
Balance at
30 June 2021
2,739,555
113,736
29,723
2,883,014
As at 30 June 2020, the Company’s key management personnel indirectly held the following shares in the
Company:
Karl Siegling
Wayne Davies
Susan Oakes
Balance at
1 July 2019
1,600,001
100,000
24,000
1,724,001
Acquisitions
Disposals
-
-
-
-
-
-
-
-
Balance at
30 June 2020
1,600,001
100,000
24,000
1,724,001
16. RELATED PARTY TRANSACTIONS
All transactions with related entities were made on normal commercial terms and conditions.
Karl Siegling is the sole Director and a beneficial owner of Cadence Asset Management Pty Limited, the
entity appointed to manage the investment portfolio of Cadence Opportunities Fund Limited. In its capacity
as Manager, Cadence Asset Management Pty Limited was entitled to a management fee of $256,190
(inclusive of GST) (2020: $106,071). This is equivalent to 0.125% of the value of the portfolio calculated on
the last business day of each month. Over a full year, the monthly management fee will be comparable to a
fee of 1.25% of the gross value of the portfolio per annum. As at 30 June 2021, the balance payable to the
Manager was $29,011. (2020: nil). The loan receivable from the Manager (which was provided to the
Manager by the Company in accordance with a loan agreement entered into on or around the date of the
Prospectus) was repaid during the 2021 financial year (refer note 5). As at 30 June 2020 the outstanding
Loan to the Manager was $126,411.
The duties of the Manager are to manage the portfolio and to manage and supervise all investments,
maintain the corporate and statutory records of the Company, liaise with the ASX with respect to compliance
with the ASX listing rules, liaise with ASIC with respect to compliance with the Corporations Act and liaise
with the share registrar of the Company.
In addition, Cadence Asset Management Pty Limited is to be paid, annually in arrears, a performance fee,
being 15% (plus GST) of the amount of the increase in the value of the portfolio. No performance fee is
payable in respect of any performance period, where the portfolio has decreased in value over that period.
For the year ended 30 June 2021 $1,721,228 (inclusive of GST) (2020: $459,976) was payable to Cadence
Asset Management Pty Limited. As at 30 June 2021, the balance payable to the Manager was $1,721,228
(2020: $459,976).
Cadence Asset Management Pty Limited employs accounting personnel to provide accounting services to
Cadence Opportunities Fund Limited. These services are provided on commercial terms and include a
standard charge of $550 (inclusive of GST) per month.
31
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
17. EVENTS AFTER THE REPORTING PERIOD
The Board have declared a 12.0 cent per share fully franked final dividend and a 3.0 cent per share fully
franked special dividend payable on 29 October 2021. The Ex-Date for the dividend is the 22 October
2021.
In September 2021, DeepGreen Metals merged with Sustainable Opportunities Acquisition Corporation
(SOAC). The merged entity renamed, TMC The Metals Company Inc. (TMC) and listed on the NASDAQ on
the 10 September 2021. The Company’s investment in DeepGreen Metals was valued at $0.2 million at 30
June 2021. On the close of the first day of listing of TMC on the NASDAQ the value of the Company’s TMC
position increased to $1.6 million.
Other than the above there has not arisen in the interval between the end of the financial year and the date
of this report any other item, transaction or event of material and unusual nature likely, in the opinion of the
Company, to significantly affect the operations of the entity, the results of those operations, or the state of
affairs of the entity, in future financial years.
18. CONTINGENT LIABILITIES
There were no material contingencies as at 30 June 2021 (2020: nil).
19. CAPITAL COMMITMENTS
2021
$
2020
$
Capital commitments exist for placements entered into before
30 June 2021, which settle after year end.
150,000
72,000
32
CADENCE OPPORTUNITIES FUND LIMITED
A.B.N. 37 627 359 166
DIRECTORS’ DECLARATION
The Directors of Cadence Opportunities Fund Limited declare that:
1. The financial statements and notes as set out on pages 12 to 32, are in accordance with the Corporations
Act 2001, including:
(a) complying with Australian Accounting Standards, which, as stated in Note 1 to the financial
statements, constitutes compliance with International Financial Reporting Standards (IFRS), the
Corporations Regulations 2001 and other mandatory professional reporting requirements; and
(b) giving a true and fair view of the financial position of the Company as at 30 June 2021 and of its
performance for the year ended on that date;
2. At the date of this declaration, in the Directors’ opinion there are reasonable grounds to believe that the
Company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the Board of Directors.
Karl Siegling
Director
Dated at Sydney, this 27 September 2021
33
Level 16, Tower 2 Darling Park
201 Sussex Street
Sydney NSW 2000
Postal Address
GPO Box 1615
Sydney NSW 2001
p. +61 2 9221 2099
e. sydneypartners@pitcher.com.au
Independent Auditor’s Report
To the Members of Cadence Opportunities Fund Limited
A.B.N. 37 627 359 166
Report on the Audit of the Financial Report
We have audited the financial report of Cadence Opportunities Fund Limited (“the Company") which
comprises the statement of financial position as at 30 June 2021, the statement of profit or loss and
other comprehensive income, statement of changes in equity and statement of cash flows for the
year then ended 30 June 2021, and notes to the financial statements, including a summary of
significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Company, is in accordance with the
Corporations Act 2001, including:
(a) giving a true and fair view of the Company’s financial position as at 30 June 2021 and of
its financial performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Company in accordance with
the auditor independence requirements of the Corporations Act 2001 and the ethical requirements
of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (including Independence Standards) (“the Code”) that are relevant to our
audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has
been given to the directors of the Company, would be in the same terms if given to the directors as
at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Other Information
The directors of the Company are responsible for the other information. The other information
obtained at the date of this auditor’s report is information included in the directors’ report but does
not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
Adelaide Brisbane Melbourne Newcastle Perth Sydney
34
Pitcher Partners is an association of independent firms.
An independent New South Wales Partnership. ABN 17 795 780 962. Liability limited by a scheme approved under Professional Standards Legislation.
Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.
pitcher.com.au
Independent Auditor’s Report
To the Members of Cadence Opportunities Fund Limited
A.B.N. 37 627 359 166
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially consistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001.
In Note 1, the directors also state, in accordance with applicable Australian Accounting Standards
and Interpretations that the financial statements comply with International Financial Reporting
Standards. The directors’ responsibility also includes such internal control as the directors determine
is necessary to enable the preparation of a financial report that gives a true and fair view and is free
from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Company or
to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting
intentional omissions,
involve collusion,
fraud may
from error, as
misrepresentations, or the override of internal control.
forgery,
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Company’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a
going concern.
Pitcher Partners is an association of independent firms.
ABN 17 795 780 962.
An independent New South Wales Partnership.
35
Independent Auditor’s Report
To the Members of Cadence Opportunities Fund Limited
A.B.N. 37 627 359 166
•
Evaluate the overall presentation, structure and content of the financial report, including
the disclosures, and whether the financial report represents the underlying transactions
and events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
C I Chandran
Partner
27 September 2021
Pitcher Partners
Sydney
Pitcher Partners is an association of independent firms.
ABN 17 795 780 962.
An independent New South Wales Partnership.
36