29/06/2022 09:27

Current thinking around the MM Income Portfolio

We’re contemplating a number of amendments in the Income Portfolio as we position for what comes next.  Today’s portfolio update will simply detail our current thinking, not yet our planned actions:   

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28/06/2022 09:39

Magellan Financial Group (MFG) $13.82

MFG has kept falling over the last 12 months as the news around Hamish Douglass, hefty withdrawals and poor performance have weighed on the stock. To put things in perspective, FUM has fallen over 40% from its peak last August and more appears likely. The stock is now cheap if you believe Kirsten Morton can steady the ship but like an oil tanker it will take time to change direction, and in our opinion, this is one for the aggressive investors or traders until further notice

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22/06/2022 09:28

Active Income Portfolio

The portfolio fell -1.67% for the week while cash remains at ~1%. Magellan (MFG) +6.79% the biggest winner from an absolute perspective although our position is a small one, while Wesfarmers (WES) +2.17% & G8 Education (GEM) +1.92% recovered some recent losses, the biggest drag was novated leasing and salary packing provider Smartgroup (SIQ) which fell by -18.55% following the loss of a contract and unrelated ~8% earnings downgrade – we covered SIQ here

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08/06/2022 09:24

Active Income Portfolio

The portfolio was down -1.48% for the week with cash at 1%.  Woodside (WDS) rallied however it’s only a small position in the portfolio as a bi-product of our BHP position which also gained. Magellan (MFG) was the weakest link down -16.33% following a FUM update while Stockland (SGP) -6.25% also fell. Real-Estate stocks have been in the naughty corner on the expectation of rate rises, our interpretation that a lot of pain...

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06/06/2022 17:01

Magellan Financial Group (MFG) $12.85

MFG -13.93%: The pain/frustration in MFG continues with further outflows prompting another decent sell-off in the stock today pushing it to the lowest close since 2014. They said that Funds Under Management (FUM) at the end of May was $65.0bn down from $68.6bn in April. To give some context on this number, FUM peaked at around ~$110bn and while lower performance fees have an impact on earnings now...

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01/06/2022 09:50

Active Income Portfolio

The portfolio slipped -0.26% for the week while cash sits at 1%. We saw a rotation out of more defensive stocks into ‘growthier’ names with APA Group (APA) down -1.81% while the banks fell, CBA lost -0.69% while Bank of QLD (BOQ) dropped -0.79%. On the flipside, strength in Magellan (MFG) +6.67% was a positive as was Service Stream (SSM) +5.03% & Insignia (IFL) +3.43% while some slight weakness in the Hybrid space was also...

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18/05/2022 09:34

Active Income Portfolio

The portfolio added  +0.32% for the week while cash remains at ~2%. Commonwealth Bank (CBA) was a strong performer adding +3.36% as they highlighted their leadership in digital banking with a bunch of innovative developments (CBA is so far ahead of the others on this), while APA (Group (APA) +3.25% & Stockland (SGP) +1.56% were also strong. Magellan (MFG) fell -8.25% to be the biggest drag.

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11/05/2022 09:33

Active Income Portfolio

The portfolio fell 2.11% for the week while cash remains at ~2%. G8 Education (GEM) was the only position that moved higher over the course of the week adding 2.79% while Magellan (MFG) -7.25% and BHP -5.54% led the declines.  

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09/05/2022 16:50

Magellan Financial Group (MFG) $15.80

MFG -8.41%: the fund manager is continuing to refocus its business, today announcing the sale of its 11.6% stake in Mexican fast-food chain Guzman Y Gomez. They’ll book a 36% profit in just under 18 months, selling the stake to Magellan backed Barrenjoey for $140m, with an additional $6m linked to the company’s performance. The proceeds will go towards ongoing capital management with Magellan shares currently 70%...

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06/05/2022 09:21

Magellan Financial Group (MFG) $17.57

MFG has certainly occupied a huge amount of real estate in the financial press over the last few months but we now believe the investment management company is looking good as a quasi-growth play. We really like the risk / reward initially looking for ~30% upside, we have refrained from calling this falling knife a buy throughout 2022 but its been attracting bargain hunters over the last 2-months as the combination...

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