MFF - MFF Capital Investments

[Dona Ferentes]

another pick from Bell Potter in the LIC space

MFF’s primary focus is to invest in large listed international companies where the Investment Manager has identified attractive business characteristics at a discount to their assessed intrinsic values. We believe there is a potential for share price appreciation given strong reported profit reserves, franking credits and supportive guidance from the Company’s Directors to revise the dividend policy from a 3cps 6 monthly fully franked dividend to 5cps within the next two years. An overhang does exist from in-the-money options, however turnover in the low cost base portfolio would foreseeably result in substantial tax liabilities.

MFF has historically outperformed its benchmark MSCI World Index (in AUD) by 3.7% p.a. over the last 10 years, and we believe this injection of incremental liquidity will facilitate further long-term growth, evidenced by the Manager’s strong track record in selecting quality companies with prospects for sustained bottom-line expansion.

- haven't followed MFF for a while.... Glory days were a decade ago, when it climbed and climbed, 50c to $2 in 5 years. Doesn't seem to have pulled ahead after Covid slump (on SP performance, gotta look at distributions over the years as well, I guess). With a current market price of $2.97, the discount to a $3.28 NTA is a bit of a worry..................

 

[Logique2]

Required to comment, as is one of my picks on the ASF Full Year 2024 Stock Picking thread.

MFF is:
Technically trending.
A surrogate for the broader ASX market.
It invests in a minimum of 20 stock exchange listed international and Australian companies.

I believe stock markets will build momentum in 2024, with broader intesst rates stable or easing.

 

[rcm617]

Always worth reading Chris Mackay's monthly comments. I use MFF for my overseas exposure they're invested in a great bunch of shares with worldwide exposure.

 

[Logique2]

Yes it's a nice proxy for domestic and international stock markets.
8.4% YTD is handy after one month.
But trending for 18 months, and should continue for now.

 

[debtfree]

Yes it's a nice proxy for domestic and international stock markets.
8.4% YTD is handy after one month.
But trending for 18 months, and should continue for now.

When you have a chance @Logique2 do you have a list of the Companies that MFF invests in, for our viewing?

 

[Logique2]

Source:
MFF Capital Investments Limited, Annual Report for the year ended 30 June 2023
-Portfolio Manager’s Report for the year ended 30 June 2023:

"..Looking forward, there are strong grounds for optimism. The businesses that comprise MFF’s portfolio companies are advantaged.
We believe that they have high probabilities of maintaining their competitive advantages and of achieving well above average levels of profitable growth over the medium term..

All holdings in the portfolio as at 30 June 2023 are shown in the table that follows (shown as percentages of investment assets).
..% ....%
MasterCard 12.2 ..JP Morgan Chase 1.6
Visa 11.8 ..Intercontinental Exchange 1.6
Amazon 10.9 ..Prosus 1.5
Home Depot 6.7 ..Lloyds Banking Group 1.4
Alphabet Class C 6.6 ..DBS Group 1.3
Microsoft 6.6 ..United Overseas Bank 1.1
American Express 6.1 ..Oversea - Chinese Banking 1.0
Alphabet Class A 5.5 ..US Bancorp 0.8
Meta Platforms 5.2 ..Lowe's 0.8
Bank of America 5.0 ..UnitedHealth Group 0.7
Flutter Entertainment 2.8 ..RB Global 0.5
CK Hutchison 2.2 ..Allianz 0.2
CVS Health 2.2 ..Schroders 0.1
HCA Healthcare 1.8 ..L'Oreal 0.1
Morgan Stanley 1.7
We continue to maintain some liquidity in AUD. Most MFF expenses, and taxes, dividends, and buybacks are paid in AUD, and we regard this as prudent matching..."

 

[debtfree]

I was just looking at the Announcements for MFF as your post came in, thanks for the info. I'll attach the link of the latest Ann from 1/2/2024 below.

Market Index - ASX Stock Quotes, Charts & Analysis

Complete overview of the ASX share market. Get today's stock quotes, tips, broker consensus and upcoming floats.

www.marketindex.com.au

 

[Dona Ferentes]

20 per cent in the card tap n go duopoly. ! and the Mag7 well represented

 

[debtfree]

20 per cent in the card tap n go duopoly. ! and the Mag7 well represented

mmm Mag 7 - No Apple / No Nvidia / No Tesla

 

[Dona Ferentes]

mmm Mag 7 - No Apple / No Nvidia / No Tesla

well, represented.

 

[debtfree]

Weekly Chart Update ........ nice start to the year.

 

[Logique2]

Plus a lazy +3% at today's (Mon) open.
Right place, right time.

 

[Logique2]

30 March. $3.65
Trend still strong.
Depth still strong.
Nasdaq still strong.

18% YTD, what's not to like..

 

[Dona Ferentes]

Trend still strong.
Depth still strong.
Nasdaq still strong.

18% YTD, what's not to like..

almost back to pre Covid (not taking into account distributions )

 

[Logique2]

28 April ; $3.47 ; +12.3% YTD.
Interim dividend $.06 to be paid 14 May.

Reducing the cost base by the dividend would give:
(3.09-.06) > 3.47 = +14.5% YTD , ex dividend

 

[Logique2]

22 May ; $3.52
Two month pause, but longer term uptrend still in place.
Paid a dividend this month.

 

[Logique2]

3.70, +19.7% YTD. The uptrend since Dec 2023 remains in place.
In the US, the Nasdaq and S&P500 are both going along nicely, and this helps MFF

 

[Logique2]

3.86 ; + 24.9% YTD. (plus a dividend).
Cruising along, even defied the US indexes to keep rising this the last week.

 

[Logique2]

$3.82 ; +23.6% YTD (plus a dividend).
Maintaining solid momemtum, it's a bit of a proxy for the Dow Jones (DJIA).

 

[Logique2]

$3.95. +27.8% today. A good proxy for the S&P500, and to lesser extent the Nasdaq.
A good story here, graphic below.
Another fully franked dividend coming in November 2024.