The ‘Offer to Invest’ e-mail goes out this Sunday evening, for those not on the list, the e-mail reads thusly:
Dear Investors and Prospective Investors,
Attached herein are links to the documentation required to either:
1. Subscribe for new shares at the Audited closing price on 31 December 2013; or
2. Redeem some or all of your holdings at that same price.
To those wishing to subscribe to new holdings, the required link can be found (and can be found at any time on the ‘Reporting’ tab of the website) under the link headed “The Investment Principles and Shareholder Guidelines” this is a 4 page .pdf document, the first 3 pages set out in easily understandable language what we are trying to achieve with the Fund. The final page is the subscription form, which you should fill out with the relevant details and return to me, preferably by e-mail (though a mailing address is included for Australia Post fans). The funds should hit the nominated EGP bank account in the form by 31 December, any earlier and you’re just providing free interest to existing holders.
To anyone wishing to redeem, please fill out the “Share Redemption Form” and return to me at your earliest convenience.
What an extraordinary year we have had in 2013. We commenced January 1 with our EGP shares valued at $1.21730. At Friday’s closing price those same shares have a valuation of $1.58403, including reinvestment of the 3.333 cent dividend (including Franking Credit) paid on 31 May 2013, the year to date return has been more than 33%, which has exceeded the return of the ASX200 including dividends of just over 16% by more than 17%. Given we target 3 – 5% annual outperformance; you have had between 3 and 5 years’ worth of outperformance in 2013. Please try to remember this should I have a little bit of a ‘dry spell’ over the next year or two!
The annualised performance of our benchmark since the inception of EGP is 7.42%. This is probably +/-2% of where I think you could realistically expect the benchmark to perform over the medium term. Provided results approximate this level, I am confident over the 3 to 5 year period, we will be able to continue to provide outperformance approximating our 3 – 5% annual target.
I have commented to a number of fellow fund managers over the last 12 months that one of the great pleasures of the good results we have generated since around mid-2012 was the fact that in the 15 months between inception and 30 June 2012, EGP generated only a 2.993% gain for investors. Granted this was 13.45% better than the markets 10.46% loss, but I expect it was a good deal weaker than the performance which many had expected when joining the fund. To my great pleasure, not only did we not experience withdrawals, but a number of these investors continued to add to their holdings displaying a good faith in my ability to do good things for them (eventually).
As I have said in previous e-mails, we do not advertise, so if you happen to find yourself discussing wealth creation, savings or investments with friends, family or colleagues, do not be ashamed to boast about how you were one of the first to uncover this upcoming young fund-manager who has generated very good results for nearly 3 years so far. Be sure to mention the unique incentive structure of the fund and the fact the fund manager has virtually all of his eggs in your basket with you.
I will send out the investor letter for the period ended December 31 2013 in early January next year. Wishing you all an enjoyable holiday season and a prosperous 2014 – Tony
My usual caveat is that investors must make contact with me by phone or e-mail (both details are in the subscription document). Anyone subscribing who I have not discussed their investment in the fund with will find their funds returned. It is imperative I ensure that all investors are properly briefed on the goals and methods of EGP prior to investing. It is my ardent desire to fill the fund with a group of likeminded investors who understand the aims of the Fund.
The fund declined substantially this week, but still managed to beat the market by about a three quarters of one percent. Given the market fell 2.52%, that still saw a decline for EGP of 1.75%. Those of you who intend to add to your subscription should probably hope for further declines between now and the end of the year, to buy at cheaper prices. Those who don’t intend to add to their holdings might be cheering against that though… – Tony Hansen 08/12/13
|
|
Apr 1st 2011 |
Jul 1st 2013 |
Current Price |
Current Period |
Since Inception |
|
EGP Fund No. 1 |
1.00000 |
1.33220 |
1.58403*1 |
18.90% |
62.44%*2 |
|
35632.05 |
39163.27 |
43169.43 |
10.23% |
21.15% |
EGP Fund No. 1 Pty Ltd. Up by %, leading the benchmark by % since July 1st. Since inception, EGP Fund No. 1 Pty Ltd is Up by %, leading the benchmark by % all-time (April 1st 2011).
*1 after 31May 2013 dividend of 2.333 cents per share plus 1 cent per share Franking Credit
*2 calculated based on dividends reinvested
