After this, CGA would have FUM of $400m - if it has not lost any...

After this, CGA would have FUM of $400m - if it has not lost any more other mandates. Revenue will have dropped here by $2m approx. ( $170 m @ 1.25% ) Rev down to $3m+ pa Costs were $2.2m in June Qtr Cash flow bleed becomes almost $6m pa currently Use up that initial cash very quickly What if shareholders oust NAOS? presumably a lot of the future payment dies? We will not know until IMA is put to shareholders No doubt the 3 year review ( in 20 months ) will have disappeared -- along with the nil fees on $30m FUM regained from OC Funds. So the compensation to CTN shareholders for ousting of a 1st class Manager dies in this deal? But the payments continue?

Insto mandates are cancellable at 1 months notice . Why aren't LIC mandates to protect shareholders?

How was the exorbitant valuation of CGA's interest in the CTN contract valued? It could not have been by an independent expert. Looks like 6 x Gross fees. Perhaps the 'compliant" CTN Directors ( Maybe Mr Kerr could not stomach the CTN Board rolling over to give consent to the valuation, or to the transfer ) have given NAOS a guaranteed 10 year certain contract?

Either way , the interest of CTN shareholders would have been best served by calling a EGM to have a proper review of alternatives (incl removing the current mgr with no compensation for lamentable performance for 15 months ).

It is ironic that the reasons the two new CTN Directors last March put forward to get 3 Directors axed last March -- ARE NOW PART OF THE JUSTIFICATIONS FOR THIS MOVE - better performance, size of mandate etc

CTN shareholders need to remember that NAOS had invested approx. $7+ m from its NCC fund ( $80m capital ) in CGA - now some 15% underwater . So is this deal protecting both NAOS, as well as CGA? With ( as ever ) no thought of the clients' shareholders. AND which NAOS is funding it?

Where is the "best of breed Corporate Governance" proclaimed from the treetops by FM's and LICs?

DYOR