Update No. 245 – 11/12/15

This week was a relatively good week for the fund.

I mean that in a very literal sense as the only good thing about this week was the performance relative to the wider market. Basically, we were going backwards at a slower rate than the benchmark.

We have made some progress toward consolidating our holdings of late. Last week saw the elimination of the MBO holding described in Update 236. This week, we eliminated a small holding picked up in the recent AKG rights offer. We were left with a very small holding after attempting a large oversubscription in the rights issue and the choice was to either flesh out the position to a proper size, or dispose of the small parcel we obtained. For the sake of progressing towards the aim of a more streamlined portfolio, given the thinly traded nature of AKG (meaning building a decent position could be painstaking), disposing was simpler. We have committed a lot of analytical effort to understanding the sector AKG operates in and may return to the area at some point.

These two holdings were our smallest and 4^th smallest holdings respectively. Detours into analysing and owning very small positions in these two stocks have added 0.034% to the funds returns for FY15, so the reward for the efforts was certainly small – Tony Hansen 11/12/2015

EGP Fund No. 1 Pty Ltd. Up by 3.73%, leading the benchmark by 8.11% since July 1^st 2015. Since inception, EGP Fund No. 1 Pty Ltd is Up by 92.60%, leading the benchmark by 62.17% all-time (April 1^st 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}