MM should be helping Magellan (MFG)!
Not a question, more a suggestion: Can you make sure you send The Quarterly to Magellan (MFG) as they are unfortunately in need of all the help they can get! Cheers, Michael.
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Cheers Michael, you just put a smile on my face although we all know it’s never nice to joke around business having a tough time.
Magellan (MFG) saw their business model struggle in recent years when they started underperforming the market yet they were charging fees significantly above the market average i.e. people are happy to pay extra for success but not failure.
Now since the departure of founder Hamish Douglass we have a fund manager that’s trying to reinvent itself while desperately attempting to stem the outflow of funds. Our thinking around the stock is it’s cheap trading on an estimated valuation of 9.2x for 2023 but there are plenty of risks compared to say Perpetual (PPT) who are exchanging hands around 10.4x, with the valuation supported by a more stable Trust business.
Ultimately, I can see another manager attempting an all-scrip takeover of MFG at some stage. I wouldn’t put it past Regal Partners (RPL) after their failed attempt for Perpetual (PPT).
