• The Meme Capital Management is a Perth-based boutique Fund Manager, established in 2012 and manages the Meme Australian Share Fund.

• The Fund specializes in technical and quantitative strategies to identify investment opportunities expected to provide both positive price appreciation and relative price out-performance over the medium to long term.

• The Fund's objective is to outperform the S&P/ASX All Ordinaries Accumulation Index over rolling three year periods, through investing in ASX listed securities outside the S&P/ASX 20. The Fund only takes long positions and does not use derivatives.

• Over the past 12 months, the Fund returned positive 17.11%, versus the Index's 8.51% return. 

ATTACHED FILESMeme Australian Share Fund AFM Fund Review October 2015 (pdf format)

Title: GST reform firmly and (finally) on the agenda. What's next?

This week it seems the GST hit the press (and hopefully not the fan) in no uncertain terms. Regular readers of "Hedge Clippings" might recall that an increase (and broadening) of the GST has been one of our hobby horses since before Joe Hockey's first budget, so we'd like to think someone has at last been listening, but we might be deluding ourselves on that count. In any event now it is on the front pages it is probably time for us to move on, and leave it to Malcolm Turnbull and Scott Morrison to battle it out with Bill Shorten. As unfair a match as that might be, we will all be heartily sick of the argument by the time of the next election.

So while reform of taxation is on the table, and reform of superannuation concessions a part of that, it is worth re-visiting the argument for tying Australia's super retirement pool to the need for increased spending on infrastructure. Taking some basic figures, the total value of Superannuation assets as at the end of June was just over $2 trillion. Research from Deloitte estimates that this will reach $7.6 trillion by 2033.

The taxation of treatment of superannuation has always been generous, partly as an incentive to encourage its initial adoption, and partly as a gift from John Howard and Peter Costello to reward the faithful along the way. There's little doubt this generosity will come under pressure in any taxation review, but the government could introduce a part carrot/part stick approach to encourage/enforce a slice of all superannuation accounts to invest in the currently underfunded infrastructure sector.

By setting a minimum percentage of all super balances (say 10%) to be invested in infrastructure bonds, with a low but steady return (say CPI plus 3-5%), with an appropriate taxation incentive for doing so, two objectives might be achieved at once. At 10% of all balances it would provide $200 billion at current levels, increasing to $760 billion by 2033. In reality at those levels there would be a shortage of projects by that time, but there could be worse problems to have.

Airports, roads, rail, water and power projects all come to mind. All it takes will be some vision, then political commitment, and finally electoral acceptance. Hopefully we now have the prospect of enough of all three to generate the debate. 

FUND REVIEWS released this week: Insync Global Titans Fund; Supervised High Yield Fund

Finally we hope you enjoyed this week's Melbourne Cup, and congratulations to the first winning female jockey in the Cup's history. Now for something completely different, this news item regarding the obedient, but not too quick on his feet, bank robber in the USA.

And on that note, I trust you have a safe and enjoyable week-end.

Regards,

Chris
CEO, AUSTRALIAN FUND MONITORS

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