Update No. 88 – 30/11/12

Set out below is a letter sent out to all shareholders this week:

Dear XXXX,

Please read to the end, there is important information for all holders.

This communication comes a little earlier than usual because once again, I will find myself traveling over the end of the current investment period (December 31st).  I (and my family) will be in the England, Wales, Ireland, Scotland and China for 4 weeks between 17 December and 14 January, but my regular website updates should be unaffected and I will access my e-mails regularly also.  My mobile will be carried with me, but I can’t promise it will be as readily answered as when I am within Australia.  The usual external audit confirmation of our December 31st assets will take place in January and depending on how busy the auditor is, should be available on the website by the end of January or early February.

Please find attached as usual the redemption form should you wish to redeem all or part of your investment in EGP Fund No. 1 Pty Ltd.  Bear in mind that the minimum remaining balance must be $5,000, any redemption reducing the holding below this amount will result in a full redemption.

Please also find attached as usual “The Investment Principles and Shareholder Guidelines” this document is functionally unchanged from the last issue, but is still worth a read to remind yourself of our goals.  As always the application form is attached should you wish to subscribe for additional shares.  Existing shareholders are allowed to subscribe for any new amount in round $1,000 amounts. My wife and I will (as we have at every investment period) subscribe for new shares January 1st.

To anyone wanting to refer a new shareholder, I would ask that you first have them contact me (number in signature below) as I am keen to ensure any new shareholders are properly briefed on the goals of the fund.  Whilst I am flattered that we have had some referrals after strong initial performance, it is imperative any new investor be fully cognisant of not only the potential rewards, but also of the inherent risk involved in any share market investment. As well, we have statutory limits to the amount (in dollars) and number of new shareholder we can add in each period. New shareholders are required to subscribe for a minimum $5,000, or any increment of $1,000 above that.

At the time of writing, you hold 91,657 shares, which based on the November 30th close are valued at market at $1.17817 are valued at $107,987.52. Those same shares if you had instead been invested in our benchmark (the ASX200) from the same subscription time/s would have a present market value of $97,649.77.

It is our intention in late May 2013 to pay our inaugural dividend.  At this stage, I am expecting to declare a $0.02 per share dividend (which will come with $0.00851743 franking credit per share attached).  I expect this dividend to grow steadily over coming years.  Based on your holding, this would result in a $1,833.14 dividend with a $785.63 franking credit.  This will, unless you provide instructions otherwise be reinvested in new shares at the ex-dividend price.  If you wish to receive the dividend as cash, please let me know and ensure I have your correct BSB & account details for the deposit.  At some time closer to the announcement of the dividend, I will contact all holders again to confirm their intentions with the dividend.

Please contact me if you have any queries regarding this e-mail or anything related to our investments.

I feel confident that 2013 will be an excellent one for EGP, in my view our holdings have never had so much intrinsic value built up in the holdings relative to the quoted share prices of the underlying holdings.  I am confident that the continued improvements in the businesses we own shares in will ultimately be more fully reflected in price of EGP.  I wish you and your family every happiness over the holidays and a productive and prosperous 2013.

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So that was the letter that went out tonight (30/11/2012). The figures naturally will differ from holder to holder, depending on which entry point/s have been used, when and how much was subscribed for each time.  The only thing every holder has in common though is, no matter when they have subscribed, every holder is performing better than had they instead bought the ASX200.  We hope to improve and extend this record into the future – Tony Hansen 30/11/12.

EGP Fund No. 1 Pty Ltd. Up by 14.39%, leading the benchmark by 1.78% since July 1^st. Since inception, EGP Fund No. 1 Pty Ltd is Up by 17.82%, leading the benchmark by 16.99% all-time (April 1^st 2011).