Update No. 115 – 31/05/13

I hinted on Twitter through the week that I would talk more about my primary reason for visiting SE Asia this week. However, having flown home through Thursday night & returned to a huge administrative workload in association with our inaugural dividend today, I will leave the in depth analysis to next week as I would like to give the matter proper attention, it will be very important to both yours & my financial futures.

As mentioned above, it was ‘dividend day’ today. EGP Fund No. 1 Pty Ltd paid its inaugural dividend which was of $0.02333 cents per share (CPS), which came with $0.01 CPS of attached Franking Credits (FC’s).

I consider it a great vote of confidence from our existing holders that every single one took their dividend in the form of new shares over cash. I believe this is a decision they will universally applaud themselves for over the coming years.

As a private investment holding company, the FC’s are of no investment use to me once earned, but I know for a great majority of our investors, they will better employ the FC’s than EGP Fund No. 1 Pty Ltd can. There are a number of ASX-listed Australian firms who could follow the EGP example; huge FC balances add minimal value to shareholders until they are placed in their pockets, and there are a variety of ways this can be achieved whilst targeting their delivery to the holders with the greatest potential benefit.

I expect our dividend will rise sharply in the coming years, as the flow of dividends into the fund grows. For example, I expect the dividend to at least double next year (i.e. your directors and I expect to declare a $0.04667 CPS with a $0.02 CPS attached FC in FY2014). The only thing that could reduce this amount is a massive inflow of new subscriptions, which would see the existing earned FC’s spread across a greater number of shares.

Fellow holders will receive a .pdf copy of their dividend statements tomorrow, have a good weekend & set aside some time for next weekend, for it will be an important update – Tony Hansen 31/05/13


Apr 1st 2011

Jan 1st 2013

Current Price

Current Period

Since Inception

EGP Fund No. 1












EGP Fund No. 1 Pty Ltd. Up by 15.40%, leading the benchmark by 7.43% since January 1st. Since inception, EGP Fund No. 1 Pty Ltd is Up by 40.47%, leading the benchmark by 27.95% all-time (April 1st 2011).

*1 after 31May 2013 dividend of 2.333 cents per share plus 1 cent per share Franking Credit