MAF share price continues its regular rebound, like other fund managers.
Good to see higher volumes yesterday.
Interesting to note that net inflows mainly comes from credit funds.
Their focus on alternative assets* (real estate, hospitality and credit) may become the main point point of this company as equities flows remain very volatile (for the industry, not specially them) while the net inflows on credit are strong and supported by the increase of interest rates.
Now, MA manages 2 bn of credit in an Australian private debt market estimated at 250 bn.
YTD**, their credit AUM has increased by 24 % (CAGR : 41 % FY 16-current).
Based on its EPS range for FY 22 (38.5c-41.5c), the stock looks quite cheap with a PE range of 15.9 - 17.1 x vs an EPS growth of 30 % to 40 % in FY 22 (vs + 25 % in FY 21). This is based on their new way to calculate underlying EPS which excludes market to market valuation.
But it still includes one off (like transaction fees), so we need to remain cautious about this valuation.
Other interesting element regarding the performance of their funds*** (12 months to 31/3/22) :
- "at or above target return across all open-ended credit strategies : range of target fund return of around 4 to 9 % p.a.
- MA Prime Logistics fund : 19.8 %
- Redcape Hotel Group : 30.3 %".
* 7.2 of total AUM including 2 bn in credit and 2.5 bn in real estate.
** for them FY= calendar year.
*** did not indicate if it was after fees for their customers
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