Ann: Market Update, page-9

I think your trying to calculate a straight line calculation rather than reading between the lines. A significant part of their NPAT is the success fees from the funds. Assuming their half year report is correct, they booked a 8mil half year profit with 10mil in revenue in "performance fees" included in the profit (note that they only actually collected 2mil of that, the rest is pending). See page 8 & 12.

Reading their half year report, they advise that 60% of revenue is management fees and 26% is performance fees). So with greater scrutiny of valuations, there will probably be less performance fees as well.

Notwithstanding the above, my guess is that they are trying to soften the market for some writedowns coming from the independent reports and that they may have to write off some of the performance fees to save face. Full Year 18 will be have to be brutal for this company to clean the decks, say sorry and get back to core business. I'll be surprised if they don't have some management being sacked as well.

This is going to go the way of RFG in the near term - the share price will hit between $1 and $2 before they start to rebuild.