The owner of the manager invested $5mil of its own money, and directors invested their money in the company.
From the prospectus... The Company will pay the Manager a management fee of 1.2% p.a. (plus GST) of the NAV of the Investment Portfolio, which is calculated and paid monthly in arrears. In addition, the Manager will be entitled to receive a performance fee from the Company equal to 17.5% (plus GST) of the Investment Portfolio’s outperformance of the Hurdle of 8.0% which is calculated and accrued monthly on a pre-tax basis and paid annually in arrears. Performance below the Hurdle will be set off against performance fees that would otherwise be payable in future years.
This compares very favourably with the usual terms of 2% management fee and 20%-25% of outperformance of an index, where the manager gets a bonus even when investors lose money, simply because the index lost more than the investors.
BLA Price at posting:
$2.70 Sentiment: None Disclosure: Unspecified
BAF Price at posting:
97.5¢ Sentiment: Buy Disclosure: 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.
(20min delay)