The funds management business of MFS returned $85 million nett profit last year. Like most funds mangers, MFS would be on average securing 1 to 1.5% PA fees, plus one offs (on sales etc). Thats how it works.
Sure there is reason for concern here....but just have a look at the outstanding performance by MFS listed.....MFS Diversified Company.....(ASX code MFT.) Just off one third in its share price, since the Nov stockmarket highs. Compares really well to Macquarie, Babcoxk and Brown etc.....(certainly nothing in the 99 cent shareprice for on going success of their funds group.)
Just a wonderful performance by this MFS company.
MFT has almost $1 billion under management - market cap of $265 million ....thus say about $15 million in fees to the parent MFS.
MFT is mostly property....same as a lot more of the unlisted MFS funds.
MFS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
