Outflow: 2.0 Billion ....Not 2 shillings ha ha ..Not feeling the love here.

Return (inc div)   1yr: -31.02%   3yr: -45.53% pa   5yr: -18.94% pa

Board:

Andrew Formica

Chairman and Non-Executive Director

Andrew Formica was appointed as a Non-Executive Director on 26 July 2023. Andrew was appointed Chairman on 18 August 2023.

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Cost to income ratio (excluding performance fees) of 36.4% during the period FY23 Funds Management business operating expenses of $121.3 million below guidance range of $125- $130 million

— Included $15.4 million expense for staff cash retention payments and costs associated with the organisational realignment announced in March and October 2022 respectively FY24 expense guidance of $95-$100 million, demonstrating continued disciplined approach to managing costs in line with the size of the business 

MAGELLAN FINANCIAL GROUP LIMITED (ASX:MFG) - Ann: FY23 Results Presentation, page-1 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

The 'Rock star is Back' Stock trend is up despite the losses across the board

Return (inc div)   1yr: -21.32%   3yr: -42.16% pa   5yr: -13.75% pa

...................................Dec 2022........Aug 2023..................June 2023................FJune 2024

• some cash flow for a dividend: Forecast Ex Div Date: 22/08/2023 (4 days away)

30th, Motley F... article.. $17

Short term eps impacted. On the 'tarmac' for growth ???? though.

Is the Magellan share price a potential opportunity?

A few brokers actually still think there is further downside for Magellan shares.

For example, UBS rates Magellan as a sell with a price target of just $17 – that’s around 20% lower. The broker is concerned about outflows in the coming years and potential fee reductions.

Morgan Stanley has similar thoughts to UBS, with a sell/underweight rating and a price target of $17.50.

Looking at those pessimistic ratings, let’s see what the valuation is for the projected earnings in FY23. UBS reckons the Magellan share price is valued at 12x FY23’s estimated earnings. Morgan Stanley thinks that Magellan is valued at 11x FY23’s estimated earnings.

Whilst analysts are focused on the potential profit decline from the global equity strategy, there are other areas that Magellan is bullish on over the longer-term such as infrastructure, Australian shares and ESG investing. It also thinks that its investments of FinClear, Guzman y Gomez and Barrenjoey have attractive futures.

Disc: not held.