Ann: Net Tangible Asset Backing January 2024 with commentary, page-10

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cutty

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19/02/24

13:33

Post #: 72483769
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Originally posted by Wazz101: ↑

thanks for the update and considerate reply Cutty,

Although I probably am a cup half full kind of guy, I also am inclined to do something about issues and here there is plenty to do!

I understand there is a lot of frustration around this fund and with good reason...(I've held forever too)

Though investment manager is active and looks to have some better investments in the fund now?
- A
Performance is very ordinary, circa 30% below the small ords @ 30 Sept

- B
fees huge for such a small fund ( MER 2.3% for the last FY of which management fee was 72%)

- C
discount extraordinarily high at nearly 50%

the questions are, what can we do about it as shareholders?

My thoughts are to

A - petition the shareholders association and maybe ultimately look to replace manager arguing that the current investment management agreement is not in the best interests of shareholders??

B - petition manager and ultimately ASIC and the government to cap fees on small funds

C - look at spreading the news and generating some buying interest to narrow the gap and help everyone out of a spot? - no harm looking for a vulture fund either, like Geoff Wilsons fund?

question is whether anyone else has any ideas or is interested in the ride?

Wazz

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I am surprised Wilson hasn't gone in for the kill.

Like you stated, the discount is up around the high 40s.

I just wish we had the protections afforded to closed funds in the UK. We would never be in this predicament.

The closed fund space in Australia is a disgrace. Maybe things will change when shareholders finally find a voice and actually become active with their vote.

The problem with TEK and Thorney in general is the controlling interest held by the manager. It really is a conflict of interest, when it's to the detriment of the shareholder base.

End of the day - the fund is way too small to satisfy liquidity requirements. All closed funds with under 200mil FUM shouldn't be on the ASX. In fact, it probably should be more.

Anyway... here we are. The only lesson, like always, is to buy into a passive, low cost ETF - which invariably smashes the brightest fund managers.
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0 Great analysis

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