After 7 consecutive weekly rises, the market finally retreated this week.
EGP shareholders received their dividend statements this week, so the reduction in the share price set out below needs to be offset against the additional shares issued in your name. Anyone having queries about this should feel free to drop me an email; it is a fairly complicated matter to the casual observer.
I have had (as I do every year) contact from some EGP shareholders who would prefer not to receive their returns in the form of income (dividends). Believe me when I say, given the choice between the two, I would choose a dollar of capital gain over a dollar of dividend, but I will capture profits wherever I can find them, and some dividends are the inevitable consequence of this.
Since inception, EGP has returned 15.72% annually after fees and cost. The breakdown of this has been an 11.09% annual capital gain and dividends (including Franking) averaging 4.63% annually, so 70.55% of the returns have been in the form of capital gains and 29.45% in the form of income.
Since inception, had you purchased the ASX200, your return would have been 6.90% annually. The breakdown of this has been a 1.37% annual capital gain and dividends (including Franking) averaging 5.53% annually, so only 19.84% of the returns have been in the form of capital gains and 80.16% in the form of income.
In simple terms, what this indicates is that although the income stream from the two alternatives has been similar (actually you’d have had more dividends from EGP as the capital base grew faster), the ‘alpha’ that has been delivered to EGP investors has virtually been entirely in the form of capital gains – Tony Hansen 03/06/2016
|
|
Apr 1st 2011 |
Jul 1st 2015 |
Current Price |
Since July 1st 2015 |
Since Inception |
|
EGP Fund No. 1 |
1.00000 |
1.57872 |
1.72389*1 |
14.62%*1 |
112.83%*2 |
|
37333.23 |
50922.68 |
52729.23 |
3.55% |
41.24% |
EGP Fund No. 1 Pty Ltd. Up by 14.62%, leading the benchmark by 11.07% since July 1st 2015. Since inception, EGP Fund No. 1 Pty Ltd is Up by 112.83%, leading the benchmark by 71.59% 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 and a 31 May 2016 Dividend of 6.0000 cps plus a 2.5714 cps Franking Credit
*2 calculated based on dividends reinvested
