Ann: Investment Manager's Presentation to AGM, page-3

Hi rester

The returns are inclusive of fees which is shown on page 29 of the presentation. Over 5 years TGG returned 14%pa compared with the world index of 13.9%. TGG performance is inclusive of fees while the index is not. To buy the world index EFT it costs around 0.15% from memory while is not reflected in the performance. For a fair comparison fees of 0.15 need to be deducted from the world index performance of 13.9%.

True comparison for pa returns over 5 years would be:

TGG 14%pa
Index 13.75%

Going by NTA performance alone, an investor would still have been better off in TGG than the index over the past 5 years.

2 additional things I would also note is that I would expect TGG to outperform when the index performs poorly (opposite of the last 5 years) and vice versa. Also the returns are ok given the weighting of US stocks in the TGG portfolio relative to the index. As shown in the graph in the presentation the US market has outperformed relative to all other regions.

Cap raisings have lowered MER which is a positive for shareholders, assuming the capital is allocated efficiently your holding in TGG in not diluted as it would be in an traditional company where the money would be used to pay off debt or sit on the balance sheet.

As mentioned in my post a couple of days ago I plan to hold both TGG and VEU EFT for international exposure in my portfolio.

Hoarding