Ann: Investment Update & NTA October 2015, page-12

Hey Gang,

I went to the FGX and FGG AGM Today. Some sharp cookies managing the funds (Geoff Wilson leading the charge). A couple of take outs for consideration:
1. The Total (MER/ICR) for the funds is only 4bp. Because the Fund Managers manage it for free, there's virtually no cost, except the annual donation to charity (1%), which is less than the Management and Admin savings (as per the Investor Presentation).
2. They are invested in some great funds that are closed to other investors. Purely because it provide the charity benefit.
3. The performance to date in Nov is likely to be 2.8% (so far), since the last NTA update for FGX (which was $1.15).
4. A recommendation from Bennelong Asset Management was Mantra Hotels, based on increased tourist numbers.
5. (The Gold): When comparing Aus Funds to International Funds, Australian funds payout twice as much as International funds in Dividends. International will use the equivalent funds for Growth. So in the case of FGX vs FGG, FGX (aussie) will have a higher dividend, but FGG (Global) will have a higher price. This is Gold because the impacts on options (FGXO vs FGGO) means that the FGGO are likely to appreciate substantially more than FGXO. If performance is equal, the FGGO will be double the FGXO. As it also have double the time value, I'd suggest getting more FGGO as soon as you can extend your mortgage.