Ann: Funds Under Management - November 2021, page-33

@Chella
I think you are mixing FUM and fund performance which is not the same......FUM is influenced by more than just fund performance so you can still have FUM increasing when there are outflows, and the people in those funds generating a lower return than the market average.

The ASX200 accumulation index increased by 27.5% in FY21.......I don't believe any of the MFG funds matched that let alone beat that, hence the sentiment that their funds are not performing. Also their global fund was heavily invested in Chinese ADRs and all the chinese names have been slammed hence the negative sentiment in the market.

Hamish's argument (rightly so) is that their risk mgmt means that losses are likely to be less than the market and this is a selling point, but in a market that just saw a 20-30-40% return (ASX, S&P500, Nasdaq) for the last 12-18 mths, it's hard to stomach a 5-15% return in the magellan funds which also charge fees of ~1.3%.

Look a few people on HC is not going to change the market's view on this stock which has both momemtum against it as well as ancillary negative sentiment (fund performance, CEO leaving, potential large institutional client/s withdrawing their funds), so its likely you may see an extended period of negative price action something changes.

Depending on why you are holding this stock, but if you are long term investor, ignore the noise & share price movement until Feb when they report results at which point more tangible information will come to light.