Hi
@ChellaRegarding GQG's listing, they have $800M in bids of a $1.2B IPO from Australian and Overseas Institutional Investors. Retail will commit in the next week or two. This will be over-subscribed and will knock out any low level bids from Institutional investors.
Regarding managing risks, GQG has a unique scuttlebutt approach to making investments which over the last three years has seen them exit investments like Alibaba early, compared to other Fund Mangers. If you are interested, listen to Rajiv Jain on the Meb Faber show and Bloomberg's Masters in Business with Barry Ritholtz:
https://mebfaber.com/2021/06/16/e321-rajiv-jain/https://ritholtz.com/2019/08/mib-rajiv-jain-gqg-partners/Rajiv elaborates on the teams risk mitigation strategy and many more things.
PAC:ASX invested 5% in the early days of GQG (Tim Carver GQG's COO was PAC's CEO until joining GQG). GQG has been a significant contributor to why PAC's FUM has increased significantly since investing. Here is a table showing FUM growth since 2018 for all ASX listed Fund Managers to compare against (
note, MFG is the only Fund Manger to report 09/21 FUM figures so far, some of these figures will drop as they are from the end of 08/21).
If Magellan's performance was the same (i.e. CAGR of PAC/GQG's = 52.5%), then MFG would have FUM of $240B+ today. That is why it is economically rational that GQG will have a much higher multiple than MFG when it lists.
GQG also has a much larger addressable market of investors and its US customer base is still growing rapidly at 10%+ per quarter. I believe of the next few years GQG can get to $500B in FUM and still target high growth of FUM.
With the above
@Chella, for me GQG's Rajiv Jain makes Magellan and Hamish Douglas look average when it comes to investing and I would trust GQG with my money over MFG all day long. MFG FUM has peaked and is not dissimilar to other Australian Fund Managers like IOOF, MLC and Pendal.
Magellan has not been focusing on its core business of Fund Management and there are a lot of question marks around performance in the coming quarters (-0.5% will be a trend that will be hard to reverse, PTM has had issues for the last couple of years).
Best of Luck
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