it really depends on the objective of the fund. If it's for solid income generation, then imo MFG are doing fine. But there's a lot of competition in that space. For instance there are many LICs listed on the ASX that invest with a view to generating income, eg AFI/ ARG/ BKI etc. with MERs ranging from 0.15-0.2%.
There are also ETFs that scan the market for high yieding companies or all manner of things depending on your taste (there's obviously added risks with buying products that buy and sell purely on numbers).
Essentially, MFG, whose MER is 1.3%+ is pit against much cheaper products and needs to perform at a rate of 1.1%+ pa against its competitors to be attractive.
Something I heard this morning: "Oh she's totally f'ed, that's what you get if you employ a couple of people who have just finished Honours to do the statistics for you" Hope Hamish ain't gettin those Honours graduates to do the stats work for the funds :p
I like Billy, he sure doesn't mind sticking his head out, with Target and JCP last year, and now with Herbalife.
MFG Price at posting:
$6.95 Sentiment: Sell Disclosure: Not Held
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