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Fiducian Group Ltd (FID)

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Fiducian Group Ltd (FID)

Hi guys I own shares in Fiducian Group (FID) and they have been a good performer and have increased their dividend every year for at least the last ten years. The share price has been dropping lately because of an ASIC court case involving the company not disclosing properly about one of its funds. I think the fund had $15 mill at the time that they closed it down. If they lose this case, do you think it will affect the company significantly or is this share price drop another good buying opportunity Kind regards Tony

Answer

Hi Tony,

Fiducian Group Ltd (FID) has grown into a $380 million financial services business, supported by a national network of around 60 financial advisers. Revenue is forecast to reach $98.5 million in FY26, up from $68.2 million, while the stock is expected to deliver a 4.2% fully franked dividend yield over the next 12 months.

The stock has only retreated ~11% in recent weeks, while the markets chopped around between 8700 and 9000, nothing too scary for a stock that can trade only ~50,000 shares a day.

  • ASIC is alleging misleading conduct and compliance failures in how FID marketed and managed its Diversified Social Aspirations Fund (DSAF), an ESG-themed investment fund.
  • We feel FID faces a reputational and compliance credibility challenge more than a material financial threat at this stage.

MM believes FID is offering value in the $11.50-$12 range, ably supported by its solid yield.

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Fiducian Group Ltd (FID)
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