Update No. 254 – 12/02/16

It was a very ordinary week for markets globally; the biggest weekly fall since five weeks ago…

Like King Cnut, unfortunately I cannot ‘hold back the tide’ of falling markets, and EGP asset values have fallen somewhat. But we have been able to do a reasonable job of protecting our assets as markets have dived.

All the finance media talk this week was of a ‘Bear Market’, which is reasonable, panic sells news. The 20% fall is the technical ‘Bear Market’ level, and the Australian price indices broke through that this week. The media does overlook the fact that as one of the highest dividend paying markets in the world, the accumulation indices are a far more reliable view of how Australian equity investors have fared.

Unfortunately, the answer to that question is also ‘not well’, we track the Friday closing prices of the ASX200 accumulation index which peaked on March 20^th 2015 and has fallen 16.1% since. In the same period, EGP has risen by 4.0%, for a total outperformance over the period of less than a year of more than 20% after all fees and costs.

To be clear, I am not pleased with such levels of absolute performance, but when markets are sharply down, it represents a very sound result – Tony Hansen 12/02/2016

EGP Fund No. 1 Pty Ltd. Up by 1.61%, leading the benchmark by 10.62% since July 1^st 2015. Since inception, EGP Fund No. 1 Pty Ltd is Up by 88.68%, leading the benchmark by 64.57% 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}