The result was not great, expected to be honest. They are reinvesting back in the business for long term growth - Futurepay, active ETF's, Barrenjoey etc. The vision, I believe is a good one, but drags on cash, and therefore profit. Not unexpected and I would certainly prefer they were doing this. It's clear relying on just FUM is not going to drive growth forever. There will be good and bad years as we have just seen.
Their total China exposure is actually not that great, from memory it was less than 10% of their aggregate portfolios. This could turn to the upside at any moment. Don't forget Berkshire is now a buyer of Alibaba, some their are some smart investors who see opportunity here.
I think the share price pull back was probably fair, I'm interested in topping up should we see further weakness. Good management, good vision.
MFG Price at posting:
$46.20 Sentiment: Buy Disclosure: Held
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