The problem I have with this 9% absolute return "objective" is that it objectively cannot be met at certain times in the cycle by a long only manager. Its just a ridiculous anchor that Hamish has placed around the neck of MFG to ease his bruised ego (which clearly was sufficiently bruised enough to require indefinite medical leave).
Now we are in a situation where even if MFG significvantly outperform the market, if there is a 25-50% market crash MFG will not meet its "objective". I know that will happen at some stage in the future.
I wish he just copped the underperformance on the chin, maybe said he wouldn't invest to account for temporary covid circumstances (although 3 years plus might not feel temporary to the research houses), and just continued doing what he was doing.
If your objective as an investor is to seek returns of 9% plus p.a. then MFG is definitely NOT the fund for you.
MFG Price at posting:
$19.05 Sentiment: Hold Disclosure: Held
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