Good point on the performance fees being paid out as bonuses but...

Good point on the performance fees being paid out as bonuses but I don't think the HY numbers include bonus payments.
Half year to December 2016 employee expense was $2.77m and full year to June 17 was $6.90m so a large increase in the second half (due to performance bonuses like you say).
Otherwise presented as : 1H $2.77m & 2H $4.13m

First half of FY 17/18 was reported as $3m employee expense (higher than pcp).
Also something to consider is the distribution staff the company recruited from Magellan to try to stem outflows, would've been earning big $. They have now left so employee expense run rate may be lower now.

Agree that the company probably needs a downturn to try to establish a value proposition but since that will negatively impact FUM (and profitability) they'd probably be hoping for continued up markets and relative outperformance.

Regardless, the FUM base will be getting stickier and stickier I'd say. Active investors have had a good chance to exit. Performance fees will be tied to strong markets which I think are less likely to exceed 6% in the coming year.
But I think outflows will probably slow.


Are results out this Wednesday? Last two years have been on the 2nd Wednesday in August.