Yes Avarice, you were right (sadly)."... Mr Bacon said his firm...

Yes Avarice, you were right (sadly).

"... Mr Bacon said his firm would also not draw other fees from the fund. "Our proposal is for one fee only," said Mr Bacon, who was a senior executive at Challenger International when it was run by Bill Ireland.

According to Trilogy Funds Management's financial accounts for the year to June 30, 2008, the business drew $1.05 million in fees of which only $155,690 were in management fees. It collected a further $287,451 in "administration and performance fees" and $386,764 in "establishment fees". ..."

Scott Rochfort - http://business.smh.com.au/business/trilogy-in-bid-to-wrest-control-of-citypac-fund-20090311-8v9j.html

Now, this article is interesting because it mixed it all up together and Trilogy did not make any effort to clarify things. There will only be ONE FEE, the 1.5%. Yet, in the very next sentence Scott Rochfort states the 'direct' fees taken from lenders of Trilogy's fund.

Mr. Rochfort doesn't seek to clarify the situation either. My guess is that many investors still believe that 'one fee from the fund' means that the 1.5% is all Trilogy is collecting in fees.

I just wonder why Trilogy doesn't say 'yes, we do collect direct fees', or 'no, we don't collect direct fees'.

If they say 'no', then they don't collect the millions $$$$ from such fees.

If they say 'yes' then my bet is that a heap of investors are going to be really peeved.

So, I guess for Trilogy, silence is the middle road - they'll do what do until they'll have to disclose. Still, this isn't what I expected from Trilogy.

So, it all seems to turn on the key phrase 'from the fund'. This is a bit like Bill Clinton's statement "... "I did not have sexual relations with that woman, Ms Lewinsky." It was a sentence to be replayed and analysed many times in the months to come. ..."

What does 'from the fund' mean? Does it mean physically 'out of the fund', or does that the fund eventually pays (or losses money), i.e. 'out/from the fund'.

Ordinarily I think it means that the fund pays (or losses the opportunity to get that money in the case of a frozen fund), in which case 'direct fees' are 'out/from the fund'.

The other view is that it means that physically the money does not come out of FMF accounts, in which case 'direct' fees are not included in the word 'fees from the fund'.

I guess in the end investors will know what they thought and act accordingly when they find out whether Trilogy does or does not collect 'direct' fees in the FMF.