Ann: Response to ASX Query re Appendix 4C, page-24

Yes, if you are gloriously successful. With huge ecomies of scale. Not to mention hugely profitable and dividend payer. And really fancy profit margins. Then, 10% market cap/fum.
Take MFG. Mostly one strategy and its close cousins. So one team underpins global equities and its variations. Huge economies of scale.
Profit of $196 mill. P/E of 23.5. Profit margin of 58%. Revenue of $338 mill. Average fee 0.74%. Fum almost $46 b average through the year. Market cap/fum 10%.
Money making machine. Hamish Douglass presents - its an entire huge ball room of bodies. George presents, and how many turn up?
CGA is struggling to be cash flow neutral. Performance across its product range uninspiring. Potential Insto mandate wins very hazy. Hanging on to current insto mandates more the issue.
Maritime Super must be aware of uninspiring performance, how long with MS tolerate? Will MS go in-house like the other industry funds? and ASX query. No client likes to use a fund manager that does not have a good looking balance sheet. And CGA's balance sheet is not like 5 years ago.
Can CGA launch more retail LICs? Possible, but all their recent LIC launches are small and sub-economic.
The more the products vary, the more the cost to income ratio, the less the economies of scale.