MFG - Magellan Financial Group

[Dona Ferentes]

Magellan shares rose 2.7 per cent to $12.89 after co-founder Hamish Douglass announced he would return to the company as a consultant.

Alarm bells would ring if it was otherwise

 

[Miner]

Alarm bells would ring if it was otherwise

Does Hamish need cash to pay his bills for medical and no earning phase,
MFG management possibly engaged him to use his name as a magic ointment to bump the stock price temporarily ?
Who knows?

 

[Dona Ferentes]

Does Hamish need cash to pay his bills for medical and no earning phase,

Who knows?

Douglass sold his eastern suburbs house for $30 million recently, it was reported.

 

[Austwide]

I don't follow MFG but it looks like they went south well before Douglass left.
Or was he sick and not acting prior to departure?

 

[Miner]

Douglass sold his eastern suburbs house for $30 million recently, it was reported.

So he needs more cash by milking cash cow

 

[Miner]

I don't follow MFG but it looks like they went south well before Douglass left.
Or was he sick and not acting prior to departure?

His sickness probably affected his decisions to some extent he took sick leave

 

[Belli]

His sickness probably affected his decisions to some extent he took sick leave

I've seen no evidence that was the case. However, in 2020 Magellan was heavily into tech shares including China (Alibaba, Meta and the rest.) as well as Starbucks, Maccas, luxury goods, etc as the view was as the middle class in China grew they would gravitate to the consumption side offered by those organisations same as Western society does to a large extent. It didn't work out.

 

[Garpal Gumnut]

His sickness probably affected his decisions to some extent he took sick leave

Somehow, I find it difficult to have much sympathy for the unwell Hamish.

He is still on the books acting as a sage on the international environment (whatever that means), and in that role, I presume drawing a "wage".

gg

 

[Garpal Gumnut]

Quite a damning assessment of Hamish Douglass and the Magellan board in the AFR today.

The unwell runner of an equestrian dojo and pedestrian stock picker has been tagged by Joe Aston for his departure gift $1000 less than that requiring a shareholder vote.

These revealed that upon the resignation of co-founder Hamish Douglass as chief investment officer in June (though he’d been on a medical leave of absence since February and quit as a director in March), Magellan’s board paid him $2,499,000, a clean $1000 below the statutory threshold for a shareholder vote.

And he is still a consultant while battling his medical illness.

Worth a copy of the AFR to read all about it.

gg

 

[Dona Ferentes]

Too often the board and senior management think they are eudaimon but succumb to hubris. With Douglass, that seems to have happened early in the game (the split from Mackay)

 

[Dona Ferentes]

Net outflows totalled $3.6 billion in September.

• Around half of $3.2 billion in institutional outflows related to a client’s liquidity requirements given volatility in late September.
• Retail outflows reached $0.4 billion.
• As at 30 Sept, had $50.9 billion in funds under management (FUM)

once a falling knife, now a fallen knife. $10.70 a share, down 8% today

 

[Dona Ferentes]

once a falling knife, now a fallen knife. $10.70 a share, down 8% today

And December brought no cheer:

Magellan tumbles 10pc.​

....now at lows of $8.73

December net outflows were $2.6 billion and, coupled with falling markets, MFG has seen assets under management falling by $4.9 billion, to $45.3 billion from $50.2 billion.

 

[peter2]

Could have been worded better. Fees are meaningful if you're paying them.

 

[divs4ever]

View attachment 151313
Could have been worded better. Fees are meaningful if you're paying them.

definitely meaningful to the client , the theory is ... if the over-performance fees are 20% the client and the taxman man divvy up the rest of the extra profits

i don't mind paying the active managers extra IF the perform ( or outperform ) most of the time

but persistent under-performers are not looked upon kindly

 

[Gretsch]

They've performed well up until COVID hit and U know who did a runner, a financial adviser I know says they're worth hanging on, wonder where to now?

 

[divs4ever]

They've performed well up until COVID hit and U know who did a runner, a financial adviser I know says they're worth hanging on, wonder where to now?

well there is an industry-wide trend ( out-flows in most of the fund managers ) , it will take something special to resist that

start a new strategy to attract some of that money allegedly on the side-lines , perhaps ?

 

[Garpal Gumnut]

They've performed well up until COVID hit and U know who did a runner, a financial adviser I know says they're worth hanging on, wonder where to now?

Mate, if a financial advisor told you to hold on to this dog, I’d be selling it if I were you.

gg

 

[Dona Ferentes]

They've performed well up until COVID hit and U know who did a runner, a financial adviser I know says they're worth hanging on, wonder where to now?

I doubt an adviser has MFG in a client's portfolio; more likely exposure to the Magellan Global managed fund or the listed MGF equivalent, as a legitimate allocation to achieve international exposure as part of the asset allocation based on client's risk profile.

 

[Gretsch]

I doubt an adviser has MFG in a client's portfolio; more likely exposure to the Magellan Global managed fund or the listed MGF equivalent, as a legitimate allocation to achieve international exposure as part of the asset allocation based on client's risk profile.

I was referring to their funds, not the group (MFG).

 

[divs4ever]

well MFG is a manager of funds , the logical approach would be to create a new fund ( or LIC ) folks might like to invest in , this isn't their first rodeo , and they MIGHT have to wait a bit for the targeted market to ease a bit more ( cheaper entries )

apart from the out-flows are any of the current managed funds under liquidity pressure

, smaller can be nimble , and in a choppy market that can be helpful

ALSO if they drop out of the XJO that is less shares available to be lent out to short-sellers ( and that might be a positive as well )