The AFR article made me salivate. If institutional investors...

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Turt

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01/09/21

22:59

Post #: 55764833
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Originally posted by lost: ↑

Hi All

Thought I would correct a few anomalies in the AFR article today:
Paragraph Two
It runs 6 global strategies and 2 US based strategies (not four strategies). The strategies are:
1> Global Equity
2> Global Quality Dividend Income
3> Concentrated Global Equity
4> International Equity
5> International Quality Dividend Income
6> Emerging Markets Equity
7> US Equity
8> US Quality Dividend Income
The three Dividend Income strategies are new.

Paragraph Four
GQG would be the largest ASX listed Fund Manager if it was listed today. This quarter will also have growth of $8B to $10B, no comparison to MFG, GQG is just better.

Paragraph Five
GQG management are rewarded through investing along with their customers, not through ownership of the GQG business. Rajiv Jain has been a big proponent of employees investing their capital in the various GQG Funds. If GQG employees have yachts, their customers will have yachts too.

It is a two way street with GQG, they also lower overall fees once they reach overall FUM levels. Initially earnings were 1.25%, but are now 0.85%. They have to be super competitive due to operating the US market and perform. Imagine what they will do in the Australian Retail Market.

Last paragraph
No investors should compare GQG to Magellan. Magellan has reached its peak FUM and growth has slowed significantly despite the efforts of introducing new products. FUM will rapidly decrease once investors wake up and realise how much money they are losing by not investing in a competing fund. GQG's growth is more like PNI's, but keep in mind there is no comparable business to GQG listed. GQG has a lot of head room for FUM growth as they operate in the US, UK and Australian markets. I believe peak FUM is around the $500B mark for GQG, but will be happy to be proven wrong (which I believe is highly probable).

Best of Luck
Lost

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The AFR article made me salivate. If institutional investors come at PAC, it could be a very good month indeed. Two annoying things for me: 1. why didn’t I buy more when I topped up a few weeks ago? 2. The SP appreciation will reduce the number of shares we will get through the DRP, but who’s complaining.

PAC Price at posting: $7.25 Sentiment: Buy Disclosure: Held
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0 Great analysis

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