We discussed MFG in June, holding a bullish stance and adding it to our Active Growth Portfolios Hitlist – we should have just bought it! MFG has bought back ~4% of issued capital since February, and remains well placed to pursue broader capital management plans, one of the reasons it resides in our Active Income Portfolio. Outflows remain a variable, but the numbers weren’t as bad as feared in June, particularly from Infrastructure following the announced retirement of Gerard Stack. MFG is currently trading on a forward valuation of around a 20% discount to its five-year historical average, providing a cushion if we see another lift in outflows.
The big question now is whether we should put ego aside and still buy MFG at higher prices after this week’s strong move.
- We can see MFG testing $12 over the next six months. We own it in our Active Income Portfolio.
MM is long and bullish MFG
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