Cadence Opportunities Fund : Appendix 4D Half Year Report to 31 December 2021

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COMPANY PARTICULARS

CADENCE OPPORTUNITIES FUND LIMITED

A.B.N. 37 627 359 166

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The Directors present their report together with the condensed interim financial report of Cadence Opportunities Fund Limited ('the Company') for the half-year ended 31 December 2021.

PRINCIPAL ACTIVITY

The principal activity of the Company was 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 period.

OPERATING RESULTS

Investment operations over the half-year resulted in an operating profit before tax of $3,325,961 (December 2020: operating profit before tax of $4,092,568) and an operating profit after tax of $2,332,116 (December

2020: operating profit after tax of $2,876,942).

REVIEW OF OPERATIONS

The Company successfully raised $15.5 million and listed on ASX on 19th November 2021 under the ticker CDO after almost 3 years trading as an unlisted fund. The issue price was $2.7716, which was the NTA midpoint as at 31 October 2021.

For the half-year ended 31 December 2021, the Company produced a positive gross performance of 21.1% compared to an increase in the All Ordinaries Accumulation Index of 4.6%. Over the past 6 months Covid-19 has had marginal impact on the operations of the Company's, however Covid-19 did produce many investment opportunities both on the long side and the short side, and both here in Australia and oversees. Investments are valued continuously to market value. For the half-year ended 31 December 2021, net investments were valued at $34,237,942 (June 2021: $19,660,386).

FINANCIAL POSITION

The net asset value of the Company for the half-year ended 31 December 2021 was $39,538,553 (June 2021: $21,965,936).

DIVIDENDS PAID OR RECOMMENDED

The Board have declared a 7.5 cent per share fully franked interim dividend payable on 14 April 2022. The Ex-Date for the dividend is the 31 March 2022.

DIRECTORS

The names of the Directors in office at any time during or since the end of the half-year are as follows: Karl Siegling - Chairman

Wayne Davies - Non Executive Director

Susan Oakes - Non Executive Director

Jolanta Masojada - Non Executive Director (Appointed 24 September 2021)

The Directors have been in office since the start of the half-year to the date of this report unless otherwise stated.

AUDITORS' INDEPENDENCE DECLARATION

A copy of the Auditors' Independence Declaration as required under Section 307C of the Corporations Act 2001 is set out on page 6.

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ROUNDING

In accordance with ASIC Corporations (Rounding in Directors' Reports) Instrument 2016/191, the amounts in the directors' report have been rounded to the nearest dollar, unless otherwise specified.

Signed in accordance with a resolution of the Board of Directors.

KARL SIEGLING Director

Dated at Sydney this 23 day of February 2022