the new reality: a) (-$1.1bn) drop in RETAIL FUM (highest margin) caused a $7.4m drop in retail fee revenue vs PCP!!! Charging 1.15% will cause further erosion in retail FUM and the P&L will get hit HARD (again!!).
b) the +$3.1 Insto FUM balance increase (mainly due to mkt returns), CAUSED A DROP IN INSTO FEE REVENUE VS PCP . As they begin to charge lower Insto mngt fees, even increasing the balance has little impact on improving the P&L position.....
retail is the SOLE breadwinner here. Continue to lose that and ki$$ your profits good bye. No wonder they stopped the buy back.....
ouch
MFG Price at posting:
$9.08 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
. As they begin to charge lower Insto mngt fees, even increasing the balance has little impact on improving the P&L position.....
(20min delay)