Happy New Year to all readers; the 6 months ending 31 December 2011 ended up being a difficult one for our portfolio, we trailed the market by 1.49%. This would be more tolerable in a market posting good gains, unfortunately it came in a market that was down 9.71% for the 6 month period. Fellow owners will probably be somewhat pleased to note that under the EGP Fund No. 1 Pty Ltd fee structure; this means we are entitled to no performance fee, for that would require the achievement of outperformance over a full 6 month period (alongside a positive return). This, coupled with the fact we charge nothing in management fees, means you have paid nothing for this (admittedly fairly ordinary) performance. That is as it should be. The earning of fees for the management of assets should rightly require the outperformance of some reasonable benchmark to occur.
We retain, over the full 9 months of operation, a handsome 9.59% advantage over our benchmark (the ASX200 Total Return index), which I am hopeful of adding to this period. If we can maintain anything approaching this advantage over the benchmark over an extended period, we should be well served.
I remain extremely confident in our holdings. The weighted average stock prices of the portfolios holdings are backed by about 25% in cash alone, add to this the fact the group also possess sound underlying businesses and the returns should come, and I’m hopeful we will see them in fairly short order in some cases – Tony Hansen 01/01/12.
|
|
April 1st 2011 |
July 1st 2011 |
Current Price |
Current Period |
Since Inception |
|
EGP Fund No. 1 |
1.00000 |
1.08396 |
0.96254* |
(11.20%) |
(3.75%) |
|
35632.05 |
34200.68 |
30879.12 |
(9.71%) |
(13.34%) |
*Unaudited price will be confirmed via external audit as soon as possible.
EGP Fund No. 1 Pty Ltd. Down by 11.20%, lagging the benchmark by 1.49% since July 1st. Since inception, EGP Fund No. 1 Pty Ltd is Down by 3.75%, leading the benchmark by 9.59% all-time (April 1st 2011).
