Ann: FY2018 Results Announcement and Investor Presentation, page-3

Hi dribs101

Unfortunately PAC doesn’t make as much in revenue from FUM as MFG and PTM.
MFG revenue this year was $452M.
PTM revenue this year was $353M.
PAC revenue this year was $46M.

Various reasons like:
1) Companies they invest in generate revenues and don’t pay out dividends. They retain income generated to extend growth and is more tax efficient in the US to do so.
2) Strategy returns more in capital gains over the long term than generating income - e.g. Aperio, 250% return in approximately 2 years.
3) US market is more competitive and will reward managers more. Trade off is significant growth opportunity, Aperio and GQG FUM would have taken 20 years to achieve in Australian market, if at all. MFG rare with $60B since 2006.

Hold onto shares, will take a few years for ASX investors to realise PAC value and similar fund managers in Australia to feel the effects of ETF and automation trends in the US. I know MFG are combating this with some of their investments in technology which bodes well for their future. I think MFG would be a good long term investment. PTM lowering fees shows margin pressure, but I think more is to come.

ASX investors would also worry about history of board and I am not sure what it will take for a change in sentiment towards PAC.

Best of Luck
Lost