Nothing like "a friendly reporter" and "a very forgiving sub editor".
"Contango's funds under management take a dip". Nearly 20 per cent "dip". More like a"fall"?
Leading para about CGA fixing industry remuneration models - however, if you make losses and have -ve cash flow, it will make little difference for the staff. No bonuses, free shares not really valuable by time escrow finished ?
Latest marketing approach - you lose large Aust institutional mandate - 20 per cent of FUM - so boss is in NY to win new mandates there from US savers? Or is he negotiating a sale of CGA to an expansionary US fund manager?
"Any decline in FUM can't be great for cash flow" Really insightful journalism! At IPO, revenue was averaging 78bp on 672m FUM ( Prospectus ). So maybe average bp now higher with loss of an insto mandate. But FUM now down 9 percent on IPO level, and no fees to CGA on the $27m got back from OC Funds. Revenue at best equal to IPO level of $5.2m. And op costs ( July 4C to ASX ) over $8m pa. Big hill to climb.
3rd para. "The $1 million being paid by Contango is the termination fee of that arrangement ...." Sloppy! Is just wrong! Contango did not pay anything. The generous Board of CTN ( Contango Microcap ) are paying it - or to be more correct - CTN's shareholders are paying it - to unload a BETTER performing manager. Better before appointment, during appointment, and since.
And we have not seen to date, anyone state that there was a Termination fee clause in that agreement - see CTN Statutory Accounts 16/ 17 Note 17 - refers to the CTN Board negotiating a fee so THEY could secure OC Funds withdrawal - quite different.
DYOR. Particularly Rear Window
CGA Price at posting:
$1.00 Sentiment: Sell Disclosure: Not Held
