A certain blog has this on FID today:
Fiducian Group (ASX: FID)
Roger Montgomery (HOLD): Well for the reasons your subscriber said it's a hold. If you own it you don't mind owning it. We live in a post-Royal Commission world - most financial services firms are moving away from vertical integration. I've seen it first hand when we are on the road meeting with advisers. And this company appears to be navigating that change pretty well, despite being vertically integrated. Funds under advice are on track to nearly double over the last five years, revenue's been growing at about 12% over the last four years, and EPS is up 16% a year. So I can understand why the dividend has been going up at the rate you mentioned, James.
Now, some reckon the company doesn't have the scale to compete in the industry. But I know the founders of this business and I reckon this is all about relationships. They've got a 35% stake in the business; they are clearly passionate, they are clearly aligned with shareholders. And for the same reason, I wouldn't buy it for corporate action, but the platform and the multi-manager funds management business is very, very attractive, so it's a hold.
James Marlay: Simon are you a buy, hold or sell on Fiducian?
Simon Conn (HOLD): It's a hold at these current prices. It's trading on over 20 times last years profit. It's been positioned well by Indy Singh and the team. So really strong founder management, strong investment performance that they have driven out of their multi-manager business. But a lot of good news is priced in. And I think they have benefited from the dislocation we have seen from the Royal Commission. So maybe going forward, its growth may slow to some extent. Particularly with equity markets being at fairly elevated levels, that always makes you cautious with businesses that are linked to financial markets.
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