Here is the data comparison of FUM performance between Magellan and GQG in AUD terms (apples and apples comparison):
Note: GQG FUM is converted into AUD using Magellan's AUD/USD exchange rate of 0.68765.
The only thing the clock should be asking is, "Is time up for Magellan?"
FYI - no one delights in the demise of a Fund Manager. This beckons for all Fund Managers that don't perform (which for Active Managers is very common). It is best to debate whether it is feasible that the business can turnaround and what it would take to do so? What are the positive signs from a business perspective?
I would be looking to new picks performing well compared to older holdings to indicate a better future (HCA:NYS, USB:NYS and LOW:NYS have been terrible selections for the quarter from the recently appointed Portfolio Manager and underperformed old holdings by almost double).
The other thing to consider is the FUM flow. If performance and current velocity of FUM outflow trends continue through to October 2022, we are looking at the following:
On current trend we are talking $46.5B in FUM by the October FUM report (only four months away). Magellan management have to stem the outflow of FUM somehow, how are they going to do this?
Best of Luck
Lost
in an overall down macro market
(20min delay)