Thanks gosouth.
When I asked the company about it back in August it sounded like the provision was a best estimate the board had decided on. I was under the impression the cause and extent was still been investigated. Potential blame may lie with AEF or their platform provider or maybe a combination. It all depends how far back the errors go back. You don't need a very big error on $1b of funds to make a significant number and I'm surprised the market has basically ignored the issue. Errors like this can also cause reputation issues if the problem starts getting publicity.
Until they can announce to the market the final cost and resolution I am treading carefully. Perhaps I've over-reacted but I've sold down significantly until there is further clarity which is a shame because AEF is one of the better growth plays out there.
Add to My Watchlist
What is My Watchlist?
