Interesting question Barney. CTN owns its own manager so you...

Interesting question Barney.

CTN owns its own manager so you would have to look at the accounts to see what the MER is. The new company will pay fees to CTN for management (between 0.85% and 0.95% page 16 of the prospectus).

The real issue is whether the cost of management is greater or less than the money the new company pays to CTN. I suspect they will lose money first year and maybe make a bit from their onward. That fee is less than a lot of recent LICs like WAM, ALF, CDM etc.

You may be worried about CTN as shareholder paying CTN as manager (circular fashion). I cannot see it as significant. Perhaps an accountant can explain and tax implications.