Not Correct, he is interpreting the same way like lot of the public. Numbers are correct, but like what I said in the morning you have to be able seperate trees from the wood.Not only that these journalists have a different agenda, looking for story that sells, normally a bad story.
Ii is a simple maths. When you work out 1 or 2 or 3 years backwards , that is going to include that bad one year during Covid where MFG performance was very low compared to other indexes. 1,2,3 year averages have been drag down for MFG because of that 1 year impact. I will give you an example.
Say year 1 from July 2018 to June 2019, year 2 July 2019 to June 2020, year 3 from July 2020 to June 2021. Say Covid period is Feb 20 to Feb 21.
In September 21 if you look back for 1 year, that will be Oct 20 to Sept 21. That includes Covid period. If you look at 2 years performance from September 21, that is going to include Covid period too. It is same for 3 year performance too, it still get distorted by Covid period. As Covid period was unusual, I want to make an adjustment. Similar to in financial statements you get adjusted profits.
This one bad year doesn’t make capabilities of MFG management bad. If that one year becomes few continuous years, that will impact investors thinking.
To prove it is not happening under normal market conditions, look at current calendar year returns in isolation. In fact GQG site has January 2021 to September 21 their performance at 20.3%. Guess what?MFG returns are 19.5% cum dividend. Both these numbers are in the table I provided.
You need to analyse with a clear mind and knowledge, not just what is put in front of you.
I also think Hamish is conservative and took the safe option during Covid and I don’t have a problem. But during normal time if this under performance happens for few years , outflow will continue too. With the portfolio MFG has currently, I don’t expect it to be out performed on long Term basis.Just ignore the Covid related year as a bad dream and continue.
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