Ann: Funds Under Management - December 2021, page-20

The retail outflow numbers are a major concern here. Based on their overall fee disclosure in this note and general knowledge, their fee for institutional money is likely only circa 40bp, whilst their average fee for retail money is more than 3 times that fee level. A billion dollars of monthly outflow from retail is in reality equivalent to more than a $3 billion outflow in terms of profitability. Loss of insto money isn't as much of a concern as it is lower margin to begin with and good analysts don't consider insto money to be particularly "sticky" in the first place when they're valuing a business. The fact that MFG are getting this level of outflows from retail is a very bad sign...retail money tends to be stickier, but once it begins to move, it tends to gather momentum, and it doesn't tend to come back.