Ann: Update in respect of Investment Management Arrangements, page-2

Lets break this down

Further to the announcements made by the Company on 4 April 2017 and 2 May 2017, the Company has completed its review of the dual investment manager structure and has been in constructive engagement with both of the appointed managers to ensure the best interests of CTN’s shareholders are met.

Ah, those shareholders. Tee Hee. Okay go through the motions until the inevitable conclusion.

The Board firmly believes that CTN's current dual manager structure is not in the best interests of CTN shareholders.

We all agree but that isn't hard to figure out. A look at the performance table proves they are a dud manager. So you going to fire the underperforming Contango team. Good start but will you be paying out their contract or just leaving them to manage $1m?


In practice, the dual manager structure has resulted in managing two portfolios which has resulted in a material overlapping of positions between the managers,

"Material" would be > 15%. I would really like to see both portfolios side by side.

increased concentration risk and confusion for brokers and market participants.

Just confused as to whether Contango portfolio performance can be so bad and whether it will ever outperform again

In addition, CTN's current dual manager structure has increased the cost and complexity of reporting and overseeing CTN's investments.

I think the cost of a year of that would be less than a boozy fund manager lunch


The Company is pleased to announce that, with the assistance of both of its investment managers, Contango Funds Management Limited, a subsidiary of Contango Asset Management (CGA), and OC Funds Management Pty Ltd (OCFM), it has reached a resolution to this matter, delivering a result that the Board of CTN believes is in the best interests of CTN's shareholders.

Superfluous

With immediate effect, CTN will revert to a single manager structure and OCFM will cease providing investment management services to the Company. OCFM and CGA will work together to ensure an orderly and smooth transition of the OCFM portfolio to CGA within 60 business days. The Board has negotiated an outcome that delivers an efficient fee structure whilst allowing for a more coherent and transparent market positioning.

Okay, so please tell us what the new negotiated outcome is

Chairman, Mark Kerr, commended both managers for their cooperative and constructive approach to the review process.

Yeah I'm calling Kafka and Orwell for this sentence

He said “The Board would like to thank OCFM and CGA for putting the interests of CTN shareholders first in negotiating this outcome.

Ooooh. That's a lot blow. Mr Kerr telling the investment world that having OCFM managing money is not in the interest of investors. As for negotiating this outcome, welcome George Orwell and "your rations have been increased from 10 to 5 pieces per day"

The CTN Board’s view was that the dual manager arrangement was inefficient,

The NEW CTN Board, representing the fund manager, was of the view that....

and we are delighted that all parties were able to work together to resolve the matter in the interests of our shareholders.”

They mean the interest of CGA shareholders

END


And with that watch the board thank Mark for his service and ship him out the door too. He didn't even sign this one