"Can't get your head around their performance fees"....

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cutty

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20/09/20

01:07

Post #: 47478716
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Originally posted by Transcender: ↑

I am not defending, purely adding some portfolio management perspective.

First and foremost this is a risky investment. Long, short, derivatives, options, you name it, they can play.
The recommendation is that something like this should not represent any more than 5% of your total portfolio.
If it gives you grief or keeps you awake at night, don't own it, its not right for you.
Same goes if you cant get your head around their performance fees. It is what it is, if you don't like it, don't own it.
If you want what the market returns, buy an ETF.

The management fee at 1.4% is not large. The performance fee at 20% is large. The reason to own this fund is because it offers the CHANCE of large returns in comparison to the ASX200. Past performance cant be extrapolated, but prior to listing their returns were huge. We all know what has happened since listing but the prospectus was at pains to point out that this was a 5-10yr proposition. Part of their performance fees, if they get any of course, are escrowed back into the fund for 10 yrs.

I own it because I want that performance. I want the 100% over the next 5 years. I don't care how they get it, but I want it. Greed , greed, greed.
Am I happy to pay if thats what they do.
Irrelevant, because if you want the CHANCE to get it, IF you get it, thats what it costs. Doesn't matter if I like it or not. If I own it, it is what it is.

If they don't deliver, I will cease to own.
Important that people understand their own rationale for owning. If you think they shouldn't be well paid if they deliver something that pays you well, then I think you may be in the wrong kind of investment.

In my opinion they are arrogant, brash, flippant and no doubt there are plenty of other adjectives people would like to use. I spent 10yrs in a dealing room. They are everything you would expect from a trader.
They had a crap start, we all know that. I expect them to come good. In this kind of environment we should expect nothing less.
If they do, you pay.
If they don't we will all be gone and it won't matter any more!

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"Can't get your head around their performance fees".

It's pretty simple, they get a so called performance fee for any positive change in NTA. People get it... they get its a f.... disgrace.

1.4% is not large for a management fee. You can't be serious... It's expensive. Anything over 1% is expensive. When you add on the performance fees... it's daylight robbery.

They took advantage of the pre-float hype because they had a good run.

If I have to read another report about value being the cause of their sh... performance I am going to lose it.

Just as you said, they are supposed to employ the full range of trading options... Surely this doesn't mean they can only perform when value stocks prevail.

Last edited by cutty: 20/09/20

LSF Price at posting: $1.48 Sentiment: None Disclosure: Held
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