The merger means we used our listed position to join a bigger...

The merger means we used our listed position to join a bigger player at a generally acceptable price. As an fund manager making revenue by earning fees, bigger usually means more competitive.

Imagine both you and your brother manager a fund respectively. Your fund's size is 100 million while your brother's is 5 million. Even your brother charges 5 times fee rate of yours he won't be making anything close to yours. So you have much bigger room to compete in this market. You can simply cut your fee rate or spend on rating agencies to get more funds... Your brother at this level won't be able compete against you because the fee might just basically pays his bills and all he can afford to do is to think better and invest smarter than when you have 2 more powerful tools which I just mentioned above to make money.

Though Hunter Hall and Pengana case isn't as extreme as the above example but I hope this can pretty much explain the idea.

Plus Pengana seems growing its fund under management size significantly. Joining force will benefit us as the original hunter hall shareholders by offsetting the declining trend caused by Dear Mr. Hall.