Upcoming Announcement Fee Estimates and Analysis, page-148

Most people on here are only looking at the first performance fee which is always going to be the highest because after a company floats it most likely is going to have quick jump, especially if it is in a major growth industry like BFC is.

Lets look at likely performance fees for 2H 2016 using a TSR of 5% and the ASX all ords average over 5 years of 2.7%. These numbers are for half yearly.

I'm using Jordan's number's of Market Cap $174M and performance fee of $14M which will be issued in shares, making the new Market Cap $188M.

$188M + TSR of 5% = $197.4M

$197.4 * 17.5% * (5% - 2.7%) = $1.68M

So your ongoing performance fee is more likely $1.7M compared to $14M, you can see why you have to look forward.

The problem with most people trading now is they've seen the 400% plus gains from BAL, A2M and BKL and they keep trying to find the next one, most the time losing money as they go.

I think BFC is a good growth company and if it can have a TSR of 10% and a good dividend why would you panic sell to try and make a quick dollar somewhere else.

I still think the performance fee is excessive but for the amount of growth BFC can have I'm more than willing to stay the mid to long term.