Update No. 65 – 22/06/12

Next weeks post will be the closing price of the indices and the fund on 30 June.  As this day is a Saturday, we will use the arithmetic average of the values from Monday – Friday 25 – 29 June as the closing value for FY2012.  I will issue it on Sunday 1 July as has become my habit, but it must be remembered, the values stated for the fund will be subject to Audit and as such will remain unconfirmed until such time as our Auditor has signed of that the values are correct.

Because we have a substantial inflow of funds due for 30 June, a huge proportion of my time over the last couple of weeks has been spent planning the allocation of that capital.  On top of that I have spent a good deal of time writing the letter to share-holders for the first full financial year of operation of the business. As such, I haven’t written much of note to put up on the blog, but I am confident that over the next 12 months, fellow shareholders will appreciate the time I’ve spent of late as the value (hopefully) continues to show in outperformance against our benchmark, the ASX200 accumulation indices.

In place of anything I’ve written, I will direct readers instead to some interesting pieces I’ve found over the last few weeks.

First off, although regular readers of my blog & weekly updates are probably already regular readers of John Hemptons blog, I will direct you anyway to his outstanding recent post ‘The Macroeconomics of Chinese Kleptocracy’, I suspect the inferences in the post are for the most part accurate, I will be interested to see if his view of the world is right under what is likely to be a lower trend inflation in China.

With respect to China’s growing proportion of global GDP, it was interesting to see some graphs and charts of Global GDP levels over the last 2000 years.  The economic rise and fall of nations relative to their global peers fascinates me.  I find particularly interesting how relatively small areas such as the UK rise from virtually nothing circa 1000 AD, to create such a large proportion of Global GDP.  The US rise is similarly staggering, the rise of China & India of late seems far less impressive when you view their historic economic power, and most surprisingly (to me at least) is the consistently strong position of Japanese contribution to Global GDP.  I had always thought they rose from virtually nothing since the late 1800’s, but in fact they were working from an historically fairly large share of Global GDP, although they did still make a very good fist of growing that share over the 20th century – Tony Hansen 22/06/12.

EGP Fund No. 1 Pty Ltd. Up by 5.64%, leading the benchmark by 3.69% since January 1^st. Since inception, EGP Fund No. 1 Pty Ltd is Up by 1.68%, leading the benchmark by 13.33% all-time (April 1^st 2011).