MFG in the BUY zone, page-347

I have searchedfor GQG prospectus but failed to find one. AFR reported that GQG Partners toldpotential investors it expected to report $US264 million ($364 million) in netprofit after tax for the year to June 30, 2022, and would have $US92.5 billion in assets under management by that balance date, 5-5.5% FY22 dividend yield. FUM at 30/6/21 is US$84.7B.

On GQGwebsite their biggest fund US Mutual “Emerging markets Equity fund” with holdingsin Brazil – 9.1%, Russia -14.8% & India – 19.9% reported Net assets valueof US$8,668m at 31/7/21 while portfolio value at 30/6 was US$8,927m (Q2 2021 report). The fund5-year average net assets growth is 12.9% and dividend yield is less than 0.5%.I am not too sure how NTA increase of 19.35% at 31/7 correlates with 41% return from this strategyreported at 30 June. See extracts from GQG website published financialstatement and 2Q commentary.

I am personally very happy with 35% MHHT ( Magellan High Conviction Trust) net return from IPO in Oct’2019 to date which includes fundperformance, partnership 7.5% bonus offer, 5% DRP discount and 3% distribution yield 100% tax deferred for the last 2 years.

7% franked or 9% unfranked dividend yield from MFG shares based on the latest Macquarie report seems very attractive.

No franking credit on potential 5% dividends from GQG (US domicile entity), but could be other tax consequences from direct investments in US entities (no personal experience in this area).