Hello @Aceboy I havenoticed you a fair bit on the WPL forum and...

Hello @Aceboy I havenoticed you a fair bit on the WPL forum and I tend to look at beaten up qualitystocks and MFG has come across my radar. Albeit very early days in the researchprocess and have a few questions if I may.

I am actuallytrying to ascertain how exactly MFG.ASX makes their profit.

1. I assume its from the management fees from their investment funds but I also think they have some direct investments of late in Guzman y Gumez and Barrenjoey.
2. Is my assumption correct and with the later will their profits directly hit the coffers of MFG at some point?
3. In terms of management fees, I am assuming its based on the market value of the fund and also net in/outflow and thereby if the stocks in that fund increase in value so will the fund and thereby increase of the management fee that MFG will earn as well?
4. I assume performance fee is what is directly attributable to the performance of the fund?
5. In their recent balance sheet report, I note a spike of current liabilities of 160M. I assume this is to do with the investments in Guzman and Barrenjoey?

Lastly, whywould an investor invest in MFG. ASX as opposed to just putting their funds inMagellan’s global fund? I am assuming at the moment the benefit is, potentiallyMFG.ASX is trading below its intrinsic value? Any input from yourself ifrelation to MFG will be appreciated?

Note – I am upto date as to why Magellan has under-performed the market in the last 12 months.