Ann: Funds Under Management - September 2023, page-81

luv your chinglish - keep at it champ!


IMAGINE THE NEXT HALF.

this IS what is happening to the half period profit after tax. Look at that fall. fund mngt fee has a lag affect where the implications of a sharp drop in fum aren't truly realised, from an income point of view, until the following half when the law of falling averages kicks in.

HISTORY: this was $70, $50, paid $3 divis is ALL IRRELEVANT.

what you FAIL to understand is REPUTATION RISK. this has been shredded on that front. look at their own fund performance charts. Abysmal. It takes years of solid performance to repair even minor damage. this has been shredded.

understand the funds business, as they will translate into the numbers. $234m H1 NPAT only 2 years ago, now theyll very likely be under $50m. More heads will roll, fund under-performance will continue, CLIENT FUM WILL OUTLFOW.....difficult snowball to stop. retail (your highest margin) exiting for better and CHEAPER options everywhere. Catch 22, reduce your fees + holding less FUM = less revenue no matter which way you slice it.

reputation is key. Fund performance and client flows don't suddenly do a u-turn over night. NOT A SINGLE FUND YOU OFFER HAS ANY APPEAL WHAT SO EVER. Would you invest in any of them, if not, why should existing client stay??

look at the reputation hit PwC is experiencing (just ask your CFO).....MFG is the PwC of the funds world.

IMHO. DYOR.