Agree FUM growth was hard in September and October looking the same. Time will tell where it is heading, may see some margin pressure but not much.
I understand the private equity investments, barrenjoey and Finclear makes sense because they are Financial Service businesses. Guzman doesn’t really fit the MQG model.
The losses or gains from private equity can take time and make earnings very lumpy, another post pointed out that PAC’s earnings are lumpy, this is why. Magellan getting attacked by other investment banks can potentially impact the allocation of money to Magellan as a fund manager, it seems to have caused a loss of confidence from some investors.
It is a risky strategy from Magellan and may go well for barrenjoey, but not so well for the fund management business. Time will tell.
Magellan previously invested in another fund manager, Airlie which is growing nicely. Why would management stray outside their circle of fund management competence? Would Magellan be better off investing in a fund manager aligned with their investment style based in the US or UK like Perpetual and Macquarie have done (Macquarie’s Fund Management business is in the Top 40 of US fund managers with approximately $US400B of FUM).
Best of Luck Lost
MFG Price at posting:
$33.90 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)