Ann: AEF Results to 30 June 2017, page-17

Hi TSA et al,
Totally agree. The trick is reducing the fees such that you compromise between profit and purely being the cheapest fund manager. So incremental small fee reductions should see some moderation of profit growth while trying to attract more customers to your product.
Another thought: I like small companies like AEF because likely annual inflows of say $500M equate to about an additional $6M in revenue, taxing tax out of this results in about an additional $4M profit. Now a company with an underlying profit(as of july17) of about $4M means a doubling in profit (assuming no additional expenses or cut in fees). Since there is no news of fee reductions so far additional profit may be nibbled at by the additional staff recruitment, but not to the tune of $4M. Anyway even an increase in profit of $3M to a company only head lining $2 to 3M is a great % improvement. This large% improvement if it starts to bare fruit in the next five to ten years will drive big gains in share price.