MFG in the BUY zone, page-883

Thanks @lost.
I've been looking into GQG more and see many similarities right down to investment focus.

From GQG
"GQG Partners seeks to invest in high-quality, attractively priced companies exhibiting competitive advantages. Our
fundamental investment process aims to evaluate each business with a focus on financial strength, sustainability
of earnings growth, and quality of management.The resulting portfolio seeks to manage the downside risk of
equity investments while providing attractive returns to long-term investors over a full market cycle."

From Magellan
The Magellan Global Fund seeks to invest in outstanding companies at attractive prices, while exercising a deep understanding of the macroeconomic environment to manage investment risk. As a result, the Magellan Global Fund's investment process is designed to generate an unconstrained, concentrated portfolio of high-quality companies. Magellan believes that an appropriately structured portfolio of 20 to 40 investments can provide sufficient diversification to ensure that investors are not overly correlated to any single company, industry-specific or macroeconomic risk. Safeguarding investor capital is an important goal of the strategy.

I agree that flows are going to be in focus. If magellan can continue to achieve its objectives of 9% p.a they can outgrow the capital base faster than people will redeem units ( 114.8 billion x 0.09 = 10.33 billion per year of investment performance) if the outflows are less than 2.5 billion per quarter. If outflows accelerate beyond 3 billion per quarter it would be difficult to maintain the dividend.

I think part of the reason people aren't selling out of magellan funds (In significant numbers) is that it has still delivered on its objectives of 9% p.a.



The beauty of fund management businesses is that they are so capital light, most if not all of the free cash flow is returned to investors. The current yield on magellan is 6.52% and 8.62% with franking credits, (This dividend was based on 100.9 billion, FUM is tracking north of 115b now).
GQG is yet to pay its maiden dividend but from my understanding will pay it quarterly rather than Magellan twice a year. Do you have a rough idea of the dividend yield based on the current share price? Possibly starting at 2.75 cents per quarter? Would suggest an annualised yield of 6.18%, is that in the ballpark?


As a side note there was a very informative article about Hamish and magellan that came out today and is worth a read.
disallowed/business/companies/magellan-s-hamish-douglass-on-the-fight-of-his-career-as-markets-turn-against-him-20211203-p59ef6.html

Cheers,
Plague.