AJC77, I suggest you do some research on the question of...

AJC77, I suggest you do some research on the question of performance fees.
MFG had a good year in FY15. But when does it get the reward?
It can get quite complicated.
- I believe there is a one-year lag before such fees are earned. I doubt if the auditors would allow MFG to include unearned fees in profit
- Does MFG require underperformance in prior years to be made up before out-performance fees are payable?
The final dividend to be paid in September 2015 is in respect of FY15 ending 30 June 2015, out of profits actually made in that FY.
The profits for FY15 include performance fees earned AFTER the benchmark period ends.
I have no knowledge of when MFG measures performance against benchmarks, but would expect it to be annually at 31/12 or 30/6.
So if say the benchmark period is for the 12 months to 30 June 2014, the performance fees received in FY15 will depend on FY14 performance (not the mere increase in FUM).
FUM at 30/6/14 was $24.9bn, up from $16bn at 30/6/13. How much of that increase was from preformance and how much from new business?
MFG out-performance in FY15 may not be rewarded until FY16, a lag of one year.
The same issue applies to PTM. PTM is growing FUM, AND has out-performed in FY15. But it underperformed in some previous years. What reward will it get in FY16, I wonder?
Hopefully other posters can helps out.