I think what is special about this company is that it has retail margins (base of about 1.20% plus performance fees of about 0.2%) on their current Funds Under Management (FUM) of $22bn. Another special thing is that they have a low cost base (ie minimal marketing/distribution spend if any and also a few funds on offer meaning less costs).
I think anything over $8.50-$9.00 will be valuing the company with an assumed retail margin (ie margin will continue for at least the next 5 years) while increasing netflows (say over $2-3bn pa) and maintaining their cost base (say 4-5% expense growth). However, in the real world, you would expect that margins will likely decline as you become more aggressive in growing your FUM.
PTM Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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