1H-2023 update, page-16

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stayer

10,270 Posts.

214

02/08/23

08:33

Post #: 69109673
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Originally posted by 1more ↑

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?

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yeah well they are not alone within fund managers sector in terms of beingon the nose a little....threats from AI, index funds and sub funds ( not sure of the terminology but you can get very specialised " index" funds)

and as " noomx" points out there is not a lot of "hard assets" ....you also have a lot of " key man" risk, in spite of his big shareholding and incentives

if you look back there are a good few other pretty shrewd posters who hold

MAM Price at posting: 59.0¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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