The all ords is now up 5.6% for the quarter and we have a fraction less than two months to go before dec31. I noticed that on oct 25 that our guidance for 1FY18 would be between $1.6 and $2.3M. I’ve calculated that a 100 point increase in the All Ords will result in an additional $350,000 towards profit, assuming we have $2.414B in FUM, we charge on average 1.35% fees, take out 35% tax and other related costs and the All ords tracks similar performance to AEF’s managed funds.
When the oct25 guidance was made, the all ords was just under 6000. I assume management have assumed All ords will be between 5900and 6100 by dec31, hence the range in profit. Interestingly, the mid point in profit is $1.95M exactly $350,000 from both top and bottom estimates.
Now if we get a continued surge in the All ords above 6100, expect a revised profit guidance. So if we have an All ords at 6300 I expect the profit to be $700,000 more than the upper $2.3M.
The 5.6% increase for the market benchmark has meant FUM are already up $135M.
Let’s watch the index climb.
AEF Price at posting:
$130.49 Sentiment: Buy Disclosure: Held
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