Would appreciate your clarifying 'misalignment of incentives for fund managers".
Both the open and closed funds have a Management Fee of $1.35% and a Performance Fee of 10% (subject to relative hurdles).
The closed fund continues to trade at a substantial discount to NAV and this is the problem for existing unitholders who are unable to realise their holding at par even with the 7.5% discount. Currently units are trading at a 12% discount:
Unfortunately managements efforts to bridge the gap with Partnership Offers and Share Buybacks do not appear to be working.
I note that halfway into the buyback (6 months), only 22% of the units intended to be bought back have been.
I am still trying to fathom the logic behind the options. The exercise price today is $1.74 based on NAV $1.88. Closing unit price was $1.665 and options $0.026. Why would you excercise?
