Fisher Funds stocks

[LoungeLizard]

Thanks Basil for all your efforts.  It is as you say, deeply frustrating to see the same bunch of idiots that created this mess charged with trying to  clean it up!

Seems like investors are stuck with Fishers then. Would there be support for liquidation? Hard to say, but presumably investors would be paid out at, or close to Nav, and could then move on?
 
The Board are there to protect shareholder funds and if they can't strike a much tougher agreement with Fishers, then they should ask shareholders to vote on liquidation. 

[Basil]

MLN shareholders should note that they have underperformed the benchmark index on average for the last 5 years to an even worse extent than BRM. 1.8% gross return v 11.5% for the benchmark index = 9.7% per annum average underperformance, (BRM 7.8%).  Not much point me going to the MLN annual meeting and barking up a storm again as their management agreement is not up for renewal this year.  Hopefully the board negotiate a much better management agreement for BRM that forms a template for MLN's management agreement renegotiation in due course.

Its worth noting that IFT shareholders would be in exactly the same pickle with Morrisons extremely lucrative agreement if they were underperforming.

The way these initial management agreements are written up needs far greater scrutiny.  It appears they often confer egregiously excessive costs, effective control and are extremely difficult to break and also may have very weak checks and balances.   Same for many of the REIT's which have had to buy out their management agreements at grossly excessive cost.  Its a RORT !

[Left Field]

....It would seem at this point that Carmel Fisher wrote herself an almost watertight contract, in a similar way to Morrisons did with IFT that makes it extremely hard for the company to change fund managers. She's sold out for tens of millions, (undoubtedly more because of the tightness of the management contract), and left other investors holding the baby.

With respect Basil, this statement is potentially libelous in several respects.

 1.) Do you have any evidence to back up your claims regarding Carmel Fisher ?
2.)  Do you have any evidence of your claimed similarity in the various separate contracts arrranged by both Fisher Funds and Morrisons?
3.) Do you have any evidence to support your implication that IFT would like to change its management contract with Morrisons?

Lastly, while I can see ample evidence for your frustration with Fisher Funds, it is a stretch to compare this with IFT/Morrrisons where at the many IFT AGM's and investor presentations I have attended, I have heard only support for Morrisons who employ and motivate over 200 skilled staff, specialist advisors and consultants working all around the world in the best interests of IFT on much more complex investment deals and Board level management co-operation.

While shareholder activism is fine, you need to have evidence to support your claims and I invite you to share your evidence.

[Basil]

1. A copy of the original IPO documentation and management contract, albeit in places with very, very poor legibility has been shared on the other channel including the terms under which the management contract can be terminated and the break fee applicable.  You can read it for yourself, to the best of your ability, the terms of the management contract on there are very much in Fisher funds favour from what I can see.  https://app.companiesoffice.govt.nz/companies/app/service/services/documents/35C731777F87CFB22C2ABCAC032DFAF2

2.  A.I. suggested to me to for IFT to break the contract the termination payment would amount to about 3 years of their fees plus any unpaid incentive fees. From memory one of the brokers recently estimated this amounts to about 5 years normal fees.

3. I never claimed IFT wanted to break it.  I have stated its extremely lucrative for Morrisons and very expensive for IFT.  That is an undisputed fact.

Maybe you should try some shareholder activism yourself sometime and try making a difference for others rather than just buying endless popcorn, doing nothing for anyone else and feeling entitled to critique others hard work.