Bit of a late entry to this thread, but here's some food for...

Bit of a late entry to this thread, but here's some food for thought. Funds management businesses are all about FUM growth. Performance fees are nice if you can get them, but you need a big FUM base to make it work. As someone who works in an advisory capacity the funds management industry, I can tell you that these guys will continue to find it very difficult to grow FUM. They are a minnow in the investment management arena and find it very difficult to go up against more established players. Adding to this issue if the fact that their management and performance fee structures are highly uncompetitive compared to peer products. Great for revenue, but makes it difficult to get FUM, so its a moot point. Financial advisors (where the bulk of investor money into funds comes from), will hesitate to recommend such funds in the face of such high fees, particularly if there are worries about the fund not performing in the future.

So where does that us? My take, tough to see much growth in this one. Profits might be OK, but extremely vulnerable to declines in FUM. If you want a play on funds management, better options out there IMO.