gmi flat, page-8

Ok, yeah you've got a point there. Ordinary performance coupled with high management fees means the stock must trade at a sizeable discount to NTA just to make up for that fact. I guess 2.2% is high for benchmark performance or underperformance (when no performance fees are paid, hence lowering the MER from current year). It's all subjective in the end, I think, as it depends on how proficient you think the manager is.

You've certainly got a valid point, you can do benchmark just by holding RIO and BHP, without paying the 2.2%. If GMI managers don't have a track record of consistently beating benchmark you'd definitely need at least a 10% discount to NTA just to make up for that.