The BPAM Management fee is 1.2% of Portfolio Value, covering the cost of the senior management team. That isn't the major long term problem for shareholders. And given the mess this hasn't been a money earner for BPAM - but that is of their own doing.
The performance fee is the bigger issue - 17.5% of Market Cap for 100% outperformance of TSR versus AO Accum Index. Whilst this is subject to clawback, if the good times ever come, 17.5% of the market cap of the company will be given away as FPO shares or performance Rights to BPAM.
All of this was disclosed in the prospectus but in my humble opinion it is a very poor governance model.
From all accounts they've got a good CEO but given the issues above it is un-investable IMO.
The BPAM Management fee is 1.2% of Portfolio Value, covering the...
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