Ann: Response to ASX Query, page-8

That's the breakdown I want to see - the liabilities. They refer to them as "accrued expenses, management fees and performance fees". Performance fees should not have been accrued this financial year because the NTA has been decreasing since the quarter before June 2017 and there's a high water mark provision. So what's the breakdown of management fees and accrued expenses? The combination of expenses and paying management fees on the high valuation of JBFG - plus poor performance on listed invesetments like SIO - are what's responsible for the NTA decline.


Is it fair to be paying management fees to JBL at all while in suspension following a litany of management mistakes? Is HML paying legal and audit costs due to mistakes made by the manager, JBL, and is that fair?

Regarding the small amount in the "derivative financial assets" category, people need to remember that they trade using leverage and this requires relatively small amounts to be put up for the exposure they're gaining. So it's not correct to assume they've hardly been trading. But the trading performance this year has probably not been spectacular (in line with BHD) and obviously nowhere near enough to compensate for the cost drain.