I normally don't post but felt I should to try and clear up the...

I normally don't post but felt I should to try and clear up the performance fees issues Jordan is raising.

Jordan your calculations are assuming that everything happens within a 1 year period (i.e. BFC gets to a market cap of $1b within a year). I agree this structure is not suitable for such a scenario.

Let's say instead that it takes 10 years to get to $1b market cap, BFCs market cap increases by 20% each year and the ASX rises by 5% per year.

Y1: 170*0.175*(0.2-0.05) = 4.46
Y2: 208.46*0.175*(0.2-0.05) = 5.47
Y3: 255.63*0.175*(0.2-0.05) = 6.71
Y4: 313.46*0.175*(0.2-0.05) = 8.23
Y5: 384.38*0.175*(0.2-0.05) = 10.09
Y6: 471.35*0.175*(0.2-0.05) = 12.37
Y7: 577.99*0.175*(0.2-0.05) = 15.17
Y8: 708.76*0.175*(0.2-0.05) = 18.61
Y9: 869.12*0.175*(0.2-0.05) = 22.81
Y10: 1065.76*0.175*(0.2-0.05) = 27.98

Each year the new market cap is calculated by multiplying the previous year's market cap by 1.2 (for the 20% rise) and adding the performance shares issued (e.g. 170*1.2+4.46 = 208.46).

Total performance fees paid for the 10 years is $131.90M, significantly lower than Jordan's $766.50M.

Please note these are just rough calculations, I did not include the management fees of 1.20% per annum.