We are a small fund, with only 40 investors, but these investors never fail to impress me with their abilities. We have Doctors, Professors, Business Owners, Consultants and other persons employed across a wide variety of industries. They mostly leave me to do my work with their capital and I rarely hear from them, but when I do it is invariably a valuable contribution.
When I mentioned in the Annual Performance Letter the need to change our benchmark due to the ASX200TR index not grossing up for Franking Credits, one of our members helped me out with what will now be our solution.
In fact it was our inaugural member auditor who again came up with the goods. Whilst she was ‘holidaying’ in Germany no less!
Her revelation was that Standard and Poor’s in November 2014 had developed an index that does exactly what we need. Measuring the ASX200; grossed up for fully franked dividends. In the words of S&P:
“This index adjusts the total return of the S&P/ASX 200, one of the most widely followed Australian equity benchmarks, for the tax effect of franking credits based on a 0% tax rate.”
This is an elegant solution to our problem and ensures that we are comparing apples (the grossed up return of the fund) with apples (the grossed up return of the index) – Tony Hansen 10/07/2015
|
|
Apr 1st 2011 |
Jul 1st 2015 |
Current Price |
Since July 1st 2015 |
Since Inception |
|
EGP Fund No. 1 |
1.00000 |
1.57872 |
1.58690*1 |
0.52% |
86.64%*2 |
|
37333.23 |
50922.68 |
52033.54 |
2.18% |
39.38% |
EGP Fund No. 1 Pty Ltd. Up by 0.52%, trailing the benchmark by 1.66% since July 1st 2015. Since inception, EGP Fund No. 1 Pty Ltd is Up by 86.64%, leading the benchmark by 47.26% all-time (April 1st 2011).
*1 after a 31 May 2013 dividend of 2.333 cents per share (cps) plus 1.000 cps Franking Credit, a 31 May 2014 Dividend of 7.000 cps plus 3.000 cps Franking Credit and a 31 May 2015 Dividend of 8.6667 cps plus 3.7143 cps Franking Credit
*2 calculated based on dividends reinvested
