Sinking like a stone, page-11

I had worked it out but realised I hadn't included RE fees and Expense recovery before so here are revised figures.

Figures as follows for the management fee including the above additional fees:
​

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8	Column 9	Column 10	Column 11
0	FUM (mn)	Dec	Jan	Feb	Mar	Apr	May	Jun
1	Aus		271.2	270.6	269.2	256.7	250.8	246.7	246.4
2	Select		73.9	75.3	74.5	71.2	67.6	62.8	56.7
3	Asia		40.7	41.1	40.7	39.4	37.3	36.3	33.9
4	Global		39.7	39.3	38.4	37.7	37.5	36.5	36.4
5	Global 2		20.4	20	18.9	17.8	17.7	17	17.2
6	Small		16.7	16.5	15.8	15.5	14.5	14.7	14
7
8	Total		462.6	462.8	457.5	438.3	425.4	414	404.6
9
10	Management Fee +RE Fee + Expense Recovery (ex GST)		Monthly Proportion
11	Aus	1.39%		0.12%	0.12%	0.12%	0.12%	0.12%	0.12%
12	Select	1.45%		0.12%	0.12%	0.12%	0.12%	0.12%	0.12%
13	Asia	1.77%		0.15%	0.15%	0.15%	0.15%	0.15%	0.15%
14	Global	1.86%		0.15%	0.15%	0.15%	0.15%	0.15%	0.15%
15	Global 2	1.86%		0.15%	0.15%	0.15%	0.15%	0.15%	0.15%
16	Small	1.19%		0.10%	0.10%	0.10%	0.10%	0.10%	0.10%
17
18				Management Fee Payable ($mn)		Half Year Total
19	Aus			$ 0.31	$ 0.31	$ 0.30	$ 0.29	$ 0.28	$ 0.28		$ 1.77
20	Select			$ 0.09	$ 0.09	$ 0.09	$ 0.08	$ 0.08	$ 0.07		$ 0.49
21	Asia			$ 0.06	$ 0.06	$ 0.06	$ 0.05	$ 0.05	$ 0.05		$ 0.34
22	Global			$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0.06		$ 0.35
23	Global 2			$ 0.03	$ 0.03	$ 0.03	$ 0.03	$ 0.03	$ 0.03		$ 0.17
24	Small			$ 0.02	$ 0.02	$ 0.02	$ 0.01	$ 0.01	$ 0.01		$ 0.09
25											Total
26	Monthly Total		$ 0.57	$ 0.56	$ 0.54	$ 0.52	$ 0.51	$ 0.50		$ 3.2054894

Total Management Fee, expense recovery, RE fees of $3,205,489.4 for the half year.

Doubling that and dividing by FUM is a weighted averaged annual management fee + RE Fee and Expense recovery of 1.58%.

I calculated the performance fee ex GST before ~14%* 3.1% (excess over 10% which is where performance was at the half year and performance fee was paid) * 404.6mn (FUM June 30) = $1.069376 mn

So Management Expense Recovery and Re fees plus performance fees are ​

	Column 1
0	$ 4,474,865.42

for the second half.

Static HY expense at $3.6mn means gross profit now 874,865 for the half. Taxed at last half's tax rate of 27.5% = $634,182 Net Profit or 0.26cps.

Table format

	Column 1	Column 2	Column 3	Column 4
0		First half	Second Half	Total
1	Gross Profit	$ 7,200,714.00	$ 874,865.42	$ 8,075,579.42
2	Net Profit	$ 5,219,739.97	$ 634,182.94	$ 5,853,922.92
3	Shares on issue	$ 240,541,152.07	$ 244,200,000.00
4	EPS	$ 0.0217	$ 0.0026	$ 0.0243

So excluding performance fees K2's management fees, expense recovery and RE fees are generating $3.2mn per half but expenses are around $3.6 million (based on first half where bonuses wouldn't have been paid).
K2 has lowered fees on a couple of the funds for the coming year so fee generation would be lower than the estimated $3.2m using current FUM.

All in all, they need to cut costs, raise FUM or earn performance fees to be profitable.

Not sure why they haven't reported yet.