Separate to the Bonitas and Bucephalus claims, have been researching the common complaint that RFF has "high fees" and whether there was any truth to it
RFM charging 1.05% seems reasonable as long as any increases to asset values are matched by increases to income generated from those assets
Checking the numbers and comparing fees to total income generated, a number of items stand out:
1. RFM has earnt management fees equal to 11-12% of total income. A small sample of other listed REIT's shows their fees at around 10%
2. When compared year on year and except FY17, RFM's fees as a % of total income have been increasing. Put another way, RFM's fees are growing faster than the total income generated from the RFF assets
3. RFM is entitled to receive reimbursements for a variety of expenses incurred whilst managing RFF. After dropping from the IPO highs, these expenses have settled to 6% of total income for the last 3 years. Would be interested to hear what others think about these expenses growing 1:1 with total income
4. With all fees and expenses combined, RFM is earning 17-18% of total income
(20min delay)