Fisher gets first performance fee

Tuesday, August 6th 2013, 12:28PM 5 Comments

Fisher Funds Management has been paid its first performance fee for managing the Barramundi fund since it was launched in 2007.

Barramundi's adjusted net asset value has increased 19.9% in the year ending June 30, and Fisher was paid a performance fee of $659,043. The fund's benchmark rate is the bank bill index plus 7%.

The fee is paid half in cash and half in shares. Barramundi is an NZX investment trust investing in Australian shares.

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Comments from our readers

On 7 August 2013 at 9:33 am Walter said:
This fund has clearly underperformed. It is currently trading at 30% below issue price. In my opinion paying this sort of fee brings the industry into disrupt.
On 7 August 2013 at 12:40 pm casper said:
Totally agree Walter. The ASX index did over 17% and the NZX over 29% in the same period. The performance fee is measured off bank bills + 7% so the hurdle is about 10%. And then add in the fact that the fund trades at about a 12% discount to NAV and its unclear why the manager deserves anything. This is a perfect example of fees that work in favour of the manger but not the long suffering investor. Not a good look for the industry.
On 8 August 2013 at 7:37 am Walter said:
A good reminder to advisers that resets on "high water marks" can make performance fees a nonsense. The devil is in the detail.
On 23 August 2013 at 8:38 am brian said:
The only reason for the increased nav is the increase in share price bought about by the buyback of shares as declared on NZX.
On 23 August 2013 at 6:56 pm Warrenn said:
I have been invested in fisher through both marlin and barramundi and have been concerned at them receiving any performance payment with the dismal performance of both funds. This particularly after the buy back programme which supports the performance payment. My index fund has performed better. This is what stopped me from using them as my Kiwi saver choice.

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