Clime Capital article on PAC, page-4

Hi Westwind
Agree market definitely undervaluing GQG returns. If there is a 21% share of the revenue plus profit (due to raising FUM through PAC's contacts) and we know the following from news releases:
1) GQG charges 1.2% fixed introductory rate on start up on FUM up to November 2017, higher rate may apply now of 1.6%, but doubt it.
2) $US12.8 Billion FUM, 1.2% annual fee equals $US153.6M
3) Let's assume they have 40 staff (employed across three sites in the US). At an average cost of $US200k each, $US8M.
4) Add lease fees and miscellaneous expenses of approximately $US3M (New York is expensive).
Following metrics should apply just for GQG:
1) Share of revenue $US153.6M x 21% = $US32.256M
2) GQG profit, ($US153.6M - $US11M)-taxes at 20% ($US142.6M-$US28.52M) equals $US114.08M.
3) PAC share of profit $US114.08M x 21% = $US23.9568M, converted to AUD/USD @75c, $AUD31.9424M

This is just GQG. Aperio has double FUM and we own 35% of these guys, so not just GQG being undervalued. From previous investor calls we know GQG hasn't paid PAC yet, so there will be an accumulation of revenue sitting waiting to be realised.

Current market valuation is extremely conservative given potential outcomes.

Best of Luck
Lost