Every fund will underperform at some point. The important part is not to lose your entire client base/FUM in the process. FID are well clear from that it seems given Net inflow figures.
Many tailwinds still applicable here: - Potential for markets to run after inflation falls. Not 100% on this one by any means
- $6m per advisor per year inflow is the new target (80 advisors, $480m inflows). This should flow into FUM/FUAdm shortly after - PUCC funds flowing across. Still more to go:
- All reductions in fees/revenue loss during integration have been fully absorbed. There's no longer a drag
- Auxilium is actually growing. Consider the multiples these platform businesses are given... It's massive. This feels like a free option.
The biggest short-term detractor here is the increase in staff costs again. But it'd be poor form to underpay your staff then have to rehire and retrain. Better to play long term games with long term people.
FID Price at posting:
$6.05 Sentiment: Buy Disclosure: Held
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