Why the smashing?, page-9

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cobrakai1984

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20/03/23

17:07

Post #: 66863831
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Originally posted by madamswer: ↑

Don't forget that it's earnings have direct equity market leverage via its Funds Management business - which has been a pretty ordinary performer in its own right and as a result has been a drag on overall group performance over time, thereby masking the organic growth of the Life business.

In the most recent half, Funds Management EBIT was down 32%, compared to the 15% increase in Life EBIT, leaving overall Group EBIT up by only 5%.

But there's a silver lining to this: the outperformance of Life vs Funds Management over time has left the Funds Management contributing just 12% of Group EBIT, so if its performance rebounds, then great but if it doesn't, well then its becoming proportionally smaller and, by the law of numbers, over time the growth rate of the whole tends to the growth rate of the fastest-growing part.

So the days of Funds Management being a volatile ball-and-chain on Group earnings are coming to an end.

But in the meantime, there is a lingering default perception of CGF being an "equity market proxy", although I sense that is a perception based more on history than the actual situation today.

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main life insurance annuity portfolio(core business) is made up of 'A' grade average rated bonds and property and some alternatives. no equity risk on that.
Sell off appears overdone.

CGF Price at posting: $6.20 Sentiment: None Disclosure: Held
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0 Great analysis

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(20min delay)
Last $8.03		Change 0.110(1.39%)		Mkt cap ! $5.541B

Open	High	Low	Value	Volume
$7.92	$8.05	$7.90	$4.417M	551.6K

Buyers (Bids)

No.	Vol.	Price($)
29	4585	$8.02

Sellers (Offers)

Price($)	Vol.	No.
$8.03	5744	21

View Market Depth

No.	Vol.	Price($)
17	2428	8.020
32	8470	8.010
23	9281	8.000
18	13499	7.990
17	18043	7.980

Price($)	Vol.	No.
8.030	6566	19
8.040	6402	14
8.050	14040	20
8.060	16600	10
8.070	12316	10

Last trade - 12.56pm 28/07/2025 (20 minute delay)

CGF (ASX) Chart

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