Great summary, thank you! Also good comments and your thoughtful response to comments just adds to the original piece. The tricky issue for me is summarised in your comment "At the end of the day, it's a cyclical business. I think earnings growth will come when EM has a sustained bull market and managers are forced to turn their underweights into overweights." I find that EM call particularly hard to make, especially when so many so-called 'macro' experts can't seem to get it right.
They talk about growing dividends but the dividend has been the same for years, 0,17. I'm missing something?
Thanks Pete, on page 192 of the Annual Report they list $323m in net management fees against average AuM for the period of $82.8b, which works out at 39bps as an average charged across assets. The only adjustment they make to get to the net figure is taking out £3.5m of distribution costs.
I can remember seeing an item in their filings breaking down fees by asset class and it's only alternatives that charge over 1% and that's comparatively small atm. Equities were around 45-60bps and bonds obviously lower, from memory. Maybe some retail funds could charge more, but that would be a low % of their clients, I'd say.
Personally I'm a dollar bear, but I have been for a while so we'll see. It would certainly be an obvious shot-in-the-arm to the AuM translation. Cheers, Guy
Great note - thanks. Definitely worth a look. I'm curious about the reduction in AUM from 2020/21 to 22/23. Do we know how much of this was redemptions/ouflows vs losses in the underlying? Also, have you spoke to mgmt. about their perception of the stock price (given it's been flatish since IPO) Thanks!
Presumably the bear case has been the ongoing implosion in Chinese junk bonds?
Thanks, I appreciate that. I will definitely look up those insights too.
Often when I can imagine something going lower in the near-term, but can make a solid bull-case for the next 5-7 years, I just have to bite the bullet and buy/hold.
Obviously the market sees a continued deterioration in AuM and performance, but the valuations are at such a cheap starting point as is.
Beautiful piece thanks. I already own this one and hold high hopes for it. I’m not convinced on performance against benchmark by a number of its funds but as you say tailwinds should gee that along. Their website offers some deep insights eg the case for local currency bonds article on 28 July
Great write up and idea. What is the plan with the cash position?
Thanks for sharing. I think it’s a great idea and a good valuation. I’m missing EPS growth over the years. However I opened a small observation position because I really like the story and valuation.
Are u invested?