Do you see any value in MFG?

MFG is approaching a bit of value but its not something I have tracked closely or understand a great deal. However, i do recall you stating there were a few listed Magellan funds on the market and I recalled in one of the earlier TV shows you explained what they exactly were and they were quite distinct. Can you please explain and tell me if you see any value as well.

A: MFG (Magellan Financial Group) is the fund manager itself. You are investing in their profitability as a manager. The share price has been falling because of fund outflows due to recent investment performance being underwhelming. The brokers still see some value – a consensus target price of $44.27 compared to an ASX price of $39.15 – although the range is wide (a low of $34.00 to a high of $48.50).

If you want to invest in their products, their major fund is Magellan Global Equities. Units are quoted on the ASX under the ticker MGOC (open class), or MGF (closed class). There is also a currency hedged version available that trades under the code MHG.

Read Answer