Regarding VGI Profit and Loss, here is what I do to normalise:
Had only glanced at previously and reduced profit by Performance fees. Didn't take into account reduced tax as a result of no performance fees.
Theoretically taxes would only be 30% on 20.117M or about 6M, so NPAT would be $14.081M, give or take. Understand this year is looking different with $50M in the first half performance fees, but doesn't make a whole bunch of sense.
In terms of the performance fees, how did they earn $50M on FUM when they had reduced FUM by $600M for the year (or reduced overall FUM by 20%)? Do you know if some of the fees have been carried across from the prior financial year?
I only typically write off performance fees for future years of Fund Managers when they are performing poorly.
Interested to hear your thoughts.
Best of Luck Lost
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