MFG in the BUY zone, page-50

Adjusted earnings are 419m if you add back the Barrenjoey/GYG/FC start up costs, as well as costs with restructuring the flagship fund. add back 154m to statutory profit & 419m is the current earning power which is confirmed by Morningstar. Currently 7.2b market cap and MFG has about 200m net cash over debt giving an EV of 7b. 7b / 419m is 16.7. That's quality value in my opinion as that earnings multiple doesn't account for future earnings generated by GYG and Barrenjoey. I also imagine their will be more investments like this within the newly created Magellan Capital Partners reporting segment, I just hope they dont try to roll out so many at once. Makes me nervous when management try to do too much at once.

Although the bulk of earnings will still come from the FM business. BJ FC and GYG have been booked as investments in associates at cost for 230m which is half of what Magellans fund business will earn in a single year. MFG doesnt report net inflows and outflows, just FUM which is annoying. Although if you lot at the most recent FUM update, I reckon there was a net outflow & FUM only increased with market value.

Still overall, this is my biggest holding & I took advantage of the sell off to add more. Ill keep averaging down.

with our mandated super system, owning the best FM business in the country is a no brainer.