Is it a good time to consider any of the fund manager companies?

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Question asked 11/12/2021

Is it a good time to consider any of the fund manager companies?

Hi James and all. Thanks for all the great tips this year. Is it a good time to consider any of the fund manager companies that have been sold off recently? Platinum PTM, Magellan MFG and Navigator NGI all look like value with good dividends. Any preferences here? Thank you, Rob

Answer

Hi Rob,

You’re certainly not wrong, it’s been a very tough year for active managers and the rise of ETF’s, particularly thematic ETFs have had a big bearing on what investors are willing to pay for traditional fund management businesses. We do see value in some managers having initiated a small position in Magellan (MFG) for the income portfolio recently which we will add to in time. Platinum (PTM) is very skewed towards Asia and we find that less appealing, Navigator (NGI) is a smaller player with a $300m market cap so it’s higher risk. Perpetual (PPT) is interesting as it has a funds management business, a wealth management business and a very stable Trust business making it a lower risk / more diversified exposure – we like PPT & MFG around current levels.

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Magellan Financial Group (MFG)

LAST UPDATED 11/12/2021 08:06

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