FY21 Results: The fund manager was hit hard today following a weaker than expected FY21 result that missed profit expectations by ~4% while the dividend of $2.11 was inline. The profit miss seems to be a result of bigger than expected losses on their principal investments, namely Barrenjoey, Guzman Y Gomez, and Finclear. There was already a concern in the market that these side hussles would detract from the main game of funds management and for now at least, that seems to be the case. In terms of the core Funds Management business, it’s performing in-line with expectations although performance fees are down markedly given the FY21 returns on their flagship fund were around 20% below the benchmark. Shares are trading down 8% at time of writing.
MM now has MFG firmly on the radar
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