Does this sound right?

CDM had planned to ASX list another managed fund early this year, Cadence Opportunities IPO. I committed some funds as I was sold on the idea of shorter-term trading in this environment. The long-biased fund never listed as the minimum subscription was never fulfilled. The IPO was opened around the time of markets crashing. Karl and his timings! Despite not listing the funds were deployed to invest. Fast forward 7-8 months and the returns have been above normal, 27% aftertax to August 31. Returns concentrated on trading over core returns. And they hold 30% cash! Webcast here
So I was pretty pleased with all of this until.......

Recently, I was thinking to pull the funds to cash. I spoke with Cadence about this and was told all investor funds (existing and future) are escrowed until the fund lists. There was also an opportunity given to top up my investment in CDM Opportunities. The current fund capitalisation is $6m , presumably pre tax, which seems a little light and they need $16.5m to viably list. I was a little astonished by this since it did not stand out in the prospectus to me 12 months ago. Reading back through the supplementary prospectus, all I can find is a clause to allow pulling of funds for one month after the prospectus and this:

In these circumstances, investors should assume that there will be no application to ASX or any other
financial market for listing and that there will be no ready market for their Shares. If the Board does not
determine to proceed with a listing of the Company’s shares within 2 years of the date of this
Supplementary Prospectus it will pursue opportunities for returning capital to the Company’s
Shareholders. These opportunities may include implementation of a share buy-back or, if there is
sufficient interest by Shareholders, winding up of the Company.


Whoops! I've not been in this position before and it feels like the amusement ride that you can't get off. Suddenly, I can see a scenario at the 2 year anniversary were everything has underperformed due to the coming financial armageddon and they hand back -75% return to the shareholders. Karl and his timings!

Sound about right?