I just noticed that new fund trying to list in ASX is valued at 16.5 to 18. From little bit I read about their portfolio, the international investment includes lot of emerging market investments. So which fund is more risky? The conservative fund is valued at 13 with dividend yield of 7%, whereas the new boy ( or girl) in town valued at much higher PE. Even perpetual has much higher PE on face value(I don’t know much about in and outs of Perpetual), these valuation doesn’t make sense. MFG has to prove through performance again that it is a superior, low risk model. Also investors should not take B’joey into consideration as they will swim or sink over next 2 to 3 years and MFG will not incur a cent more than A$156 already paid for which will have to be written off. (41m already done).
MFG Price at posting:
$32.78 Sentiment: Buy Disclosure: Held
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