There is an amazing amount of detail in the Annual Report - its worth re-reading MFG Limited Annual Report 2021 (magellangroup.com.au) One thing I picked up was that 84% of FUM is exposed to currency movements, mostly USD. There was an 11% drag from the rise in the AUD through FY21. A quick check shows that the AUD is down 3.3% so far this year and is tipped (CBA) to fall to 70c. That could provide a nice kicker - both to fund returns and to fee income.
Regarding Alibaba: I also own some directly. It was a significant holding in Magellan funds earlier this year but was severely pruned after a review increased its risk rating. I believe Magellan sees value in BABA but boy is it getting a tanking. More significantly, top holding Microsoft is off in recent days. You rarely get a chance to get Microsoft cheap, but that may be coming.
I cant predict where the MFG SP is heading short term, but I picked up some more today at 33.50 and happy to keep doing so.
MFG Price at posting:
$33.88 Sentiment: Buy Disclosure: Held
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