FUM, page-2

Yes it is.

Thats why they have reduced their management and performance fees.

There are several fund management businesses that are losing funds and have also reduced their fees.

There appears to be a shift toward more passive investment in the index's with considerably smaller fees.

I think that fees will continue to shrink for a little while until the overall performance can improve. If you look at their portfolios you will see alot of cash (approx 50%) is being held at the moment. This will not outperform the market unless we have a good correction in which case the cash will be great to pick up some bargains.

At this price level i believe the stock is attractive. Anything below 20 cents is very attractive. Considering the average earnings of this business is around 2 to 2.5 cents per year and is paid out as a fully franked dividend with potential share price increase with higher future earnings the stock appears to be cheap.

There is very little liquidity in this stock too.

Just my opinion.

Cheers