It was in terms of comparison of FUM, MFG is invested predominantly invested in the US market (@Chella mentioned 95%), whereas other Global Fund Managers seem to have a higher correlation to emerging BRIC markets (GQG has up to 65% in US, some to BRIC and other European markets). Others seem to prefer MFG for this reason, like you outlined above, comfortable with the portfolio mix.
I have wondered for a while whether MFG's approach will see longer term under performance (like the 10% last year) and have a detrimental impact on fund flow. It started a while ago and was more pronounced in the last quarter for MFG. There seems to be some large Institutions questioning whether to allocate more FUM to MFG (St James Place) and whether they retain current holdings or rebalance out of MFG into other funds. Will this influence retail investors? I am not sure, thought it would be interesting to seek others opinions.
Forgetting the share price, if the current underperformance continues and the current FUM moves to another home, what is the impact for the business? Assume MFG are at $AUD96B FUM by the end of June 2022, what is the impact on the share price of this? I know there are other pricing aspects to consider, Barrenjoey, Guzman, etc, but what about MFG's primary Fund Management business. What is the impact?
Isn't this what the current sellers of MFG are saying, I am not sure about the main businesses performance of MFG?
Best of Luck Lost
MFG Price at posting:
$32.52 Sentiment: None Disclosure: Not Held
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