I think we will have to agree to disagree. I understand you were...

I think we will have to agree to disagree. I understand you were not talking about underlying funds but rather the fund manager. Even if those high quality companies Magellan is invested in perform well, there is some risk that Magellan FUM will not perform as well and even if they do, investors may continue the down draw due to an unfortunate short period of underperformance that will make their 3 year/ 5 year/ 10 year returns look bad. The dividend is only one valuation metric.

MFG like any company has a range of outcomes from here. My assessment suggests it is skewed positive relative to the market. Since I am often wrong I own lots of different companies so that the modest wealth my family has spent years acquiring isn't blown up by one unlucky pick. If this doesn't worry you or you are starting out and can afford to recover, owning a very small number of high conviction companies may be a good strategy. I will leave it at that.