1H-2023 update, page-15

Hi Stayer, what are your thoughts on MAM from here?

With other fund managers, like Magellan, there has been an exodus of FUM – the whole sector has underperformed. When will it end? A change in the AU/US dollar value perhaps?

Looking back on MAM, it listed for 80c in 2018 and has been mostly underwater since. Not a great look. Investors have had a few dividends, but if you bought at 80c you might have stopped looking into the bottom draw. No capital growth, with an all-time low ~15c.

Prior to listing MAM had FUM annual compound growth of 72% over 5 years. From 2017 FUM $450m to 2022 FUM $630 is about 7% compounded annually. That is a massive change, what happened? Is this a general whole-of-sector trend or is it MAM specific growth issues. Judging by the email from MAM today their funds are performing well with exceptional compound growth. So why aren't they attracting more funds?

Over the last five years earnings have increased resulting in higher dividends and their return on equity looks great. MAM has done buybacks and P/E is low.

Am I missing something? It looks undervalued. Carlos and Lex own about 72%. Why doesn't anybody else, except you, want a share?