MFG 0.70% $9.95 magellan financial group limited

Undervalued & technically oversold, page-178

  1. 14,167 Posts.
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    I think you might be confusing MFG and MGF. MFG is the company that takes the management fee which is about 1.35%. MGF is the actual retail fund that has the stocks you outline and their returns.
    The year return on those stocks in MGF was 7.38%.
    Now here is the interesting part. the Net asset value ( NAV) of those shares ie the Microsoft, alphabet, Facebook (meta) etc is $2.055 and what is the share price?
    $1.735$1.735/ 2.055 = 84% ie all those wonderful companies are trading at a 16% discount to their actual worth.
    what an absolute bargain?!?
    Why would anybody in their right mind not want to buy the all these great US and Chinese companies at a discount??
    which would you prefer amazon, google, Facebook, Microsoft ... even alibaba at the market price or all these companies at 16% less.
    Now let's return to the real issue for MFG - FUM ...
    Is it at all likely that retail investors will not invest in MFGs funds when they are trading at such an extreme discount?
    I doubt it.
 
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