Legume there is a lot of your personal opinion about the managed funds industry, mostly I agree with. But the reality is at this point in time that MFG have built strong relationships with financial advisers around Australia who are sending in well over $100 mil per month into high fee paying product.
When looking at the figures for this FY MFG have taken on $4.628 mil in new funds, (including the UK mandate) on an annualised basis this will potentially bring in $23.9 mil revenue. These are based on my figures and assumptions, particularly with regard to the fees on the wholesale mandates.
We need to be mindful that outperformance has brought in the FUM, underperformance will see the FUM leave over time. We also need to be aware the while shorting the company, their growing US and UK business may just announce a significant mandate which would cause the shorters some problems. It’s all market risk, which we all need to take into account.
MFG Price at posting:
$6.63 Sentiment: LT Buy Disclosure: Held
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