I'm fairly agnostic to the debate between PTM and MFG - both have their merits and disadvantages. What I would say is that their underlying approach to portfolio construction is very different. I think Magellan's fund performance issues are well noted and debated. I don't have a lot more to add on that point.
My original post was referring to the relatively new 'core' funds. MCSG, MCSE. MCSG and MCSE's total FUM is almost negligible in the broad scheme of Magellan's total FUM (circa $30 mil) - but it wouldn't surprise me if it gets some inflows - particularly the ESG fund. The inclusion on large platforms and getting Research House "ticks" is an important first step - at least in the context of financial advice in Australia.
The second step is being included in licensee model portfolios and possibly managed accounts.
The price point (0.5%) - for some of the Magellan approach - would be appealing to some investors - who day I say, don't appreciate absolute performance but rather, relative performance. For example, MCSG would be far more likely to resemble the MSCI World index than say the Magellan Global Fund or High Conviction Fund.
It goes without saying that this is a minor revenue line at the moment for MFG as an entity - buy my summary point is that this could be a quiet growing income stream.
MFG Price at posting:
$38.68 Sentiment: Buy Disclosure: Held
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