Fund managers, page-212

Hi @saintex

In the US it is quite common for a fund to be completely decimated before it is acquired. The consolidation is happening in the Industry Superfunds quite quickly and IOOF (whatever the name is now) + MLC Wealth.

Over the years bad merger decisions by the banks have left industry gun shy of mergers.

It may happen again with the Japanese coming over to invest in Colonial.

GQG have specifically said they would look to lift great investment teams out of investment houses, rather than acquire a business. It is much cheaper.

In terms of Magellan, I believe Australian Fund Managers have issues when they grow past $AUD100B. I am not sure if it is a psychological blocker, too much money to manage. Industry Superfunds proved good returns could be achieved when FUM is greater than $AUD100B, Australian Super hit 20% return last year for balanced fund and 24% for high growth option.

Best of Luck
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