Why are people using ROE as a metric in a funds management business. Its main earning asset is FUM and this doesn't show on the balance sheet. Its not like a bank where loans go on the assets page and those loans earn profit, thus a ROE of a bank can actually provide an indicator of efficiency.
I would argue the real ROE is the net profit against the average FUM for the year. And this will be no more than 2%
ROE is not a metric that should be used for Magellan, or any FM business.
Why are people using ROE as a metric in a funds management...
Add MFG (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$8.93 |
Change
-0.040(0.45%) |
Mkt cap ! $1.635B | |||
| Open | High | Low | Value | Volume |
| $8.99 | $9.05 | $8.83 | $5.252M | 585.4K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 2568 | $8.92 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $8.96 | 1823 | 1 |
View Market Depth
| Last trade - 16.10pm 30/04/2024 (20 minute delay) ? |
|
|||||
|
Last
$8.93 |
Change
-0.040 ( 0.28 %) |
||||
| Open | High | Low | Volume | ||
| $9.02 | $9.05 | $8.84 | 73022 | ||
| Last updated 15.59pm 30/04/2024 ? | |||||
| MFG (ASX) Chart |