Update No. 110 – 26/04/13

It was quite an up and down week for both EGP and the wider market, though by the end of the week mostly up. Your shares finished 0.30% off their all-time high at $1.41212. The market was 0.39% off its all-time high (since EGP’s inception) at 41225.91. The benchmark rose sharply this week (+3.36%) and as usual, when that happens, we failed to keep pace – up only 1.72%.

Both these high-marks were achieved in early March just after reporting season finished. Since then, there has not been too much fresh news to keep the Australian market rising – though the US and Japanese markets have continued apace as their respective central banks continue with aggressive easing programs. Interestingly, despite the efforts of Japanese and US central banks, they are having trouble sparking the inflation they desire. Japan had its 5^th consecutive month of deflation, and longer-term is in its 15^th year of deflation. The US had weaker than expected GDP (+2.5% in the March quarter) and inflation (only 1.2%) – I’m still inclined to think of the US GDP figures as positive, given how rapidly Government expenditure is declining. Along with continued concerns about China, it is little wonder our markets are generally pausing after recent big increases. Something very positive will probably need to come along to spark a continuation of the rally.

With one or two exceptions, I believe our portfolio holdings are bubbling along nicely, and unless there is something that spooks the market, I would think that improved year on year results will eventually flow through to the market prices of our holdings – Tony Hansen 26/04/13

EGP Fund No. 1 Pty Ltd. Up by 16.00%, leading the benchmark by 4.98% since July 1^st. Since inception, EGP Fund No. 1 Pty Ltd is Up by 41.21%, leading the benchmark by 25.51% all-time (April 1^st 2011).