Point C is the main reason for shorting by Funds, predominantly index funds if the funds constitution and management agreements allow it.
Remember every basis point counts. If they generate 2 bps from lending shares, take 1bp as a fee (for their hard work) and use the other bp to boost fund performance they win because they have more fees and Better performance relative to the index! Some funds may take 0 as fees and put it all toward performance.
Why? The age old argument that goes like 'our competitors do it' and All else being equal the one with best historical performance and/or lowest fees gets the inflows or recommendations/awards.
Now of course if you're a trustee of the fund or on the investment committee... You have an ethical dilemma, but it's apparent for most players that inflows, relative performance and fees trump investor interest.
Obviously the above is simplistic but hopefully that makes sense.
for those of you waiting for a short squeeze, page-70
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Last
$7.14 |
Change
-0.200(2.72%) |
Mkt cap ! $6.673B | |||
| Open | High | Low | Value | Volume |
| $7.34 | $7.34 | $7.13 | $39.28M | 5.467M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1546 | $7.13 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.15 | 72361 | 6 |
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| Last trade - 16.10pm 15/11/2024 (20 minute delay) ? |
| LYC (ASX) Chart |