Funds Management Companies

[Huang Chung]

Not a fund management company per se, but an LIC......picked up a few Amcil (AMH) shares today.

Trading around asset backing, and well off its highs, this LIC has an interesting blend of blue chips and small caps in a fairly concentrated portfolio. No outrageous management fees either.

Top 5 stocks at the end of June were (in order):

BHP
Queensland Gas
Telstra
Bradken
NAB

Some other stocks in their top 20 that you would not normally see include Oakton (IT Services), Tox Free Solutions (Waste) and Mitchell Communications (Media).

Dividend of 6 cps coming up, which isn't bad when the share price is in the low 60s.

Not expecting big things, but a nice safe harbour to park some funds in these turbulent times.

[Dimebag]

Hi Mark,

Thanks for your thoughts.

I'm not sure that TRG has had huge outflows this half. They had net inflows in 3Q08 and appear to have suffered outflows in 4Q08. It's a bit unclear how these two items balanced out, but for FY08 overall they experienced inflows.

For the six months to the end of June-08 their total FUM was down 18%, which is pretty consistent with the overall market. The data the company has published is a bit patchy, but my understanding was that IM has suffered reasonable outflows in 4Q08, but their other fund managers don't appear to lost much money at all.

Have I missed something here?

PS yes HFA is also one I follow and own. The other negative about HFA is that it is a "fund of funds" manager. It could be argued that the fee-structures these fund-of-funds entail are outrageously high and ultimately unsustainable. On the other hand, the stock is very cheap, particularly when accounting for its entitlement to performance fees which could well resume in FY09, and as you point out, performance has been very good lately and inflows maintained.

Cheers,
Dimebag

[mark100]

Dimebag, a recent report I read on TRG has their inflows for the past 4 quarters as 0.3, 0.3, 0.4, -0.8. So the final quarter was poor. So they will be hoping thats not a continuing trend.

On HFA yes the fees are huge. But at least the performance figures quoted are net of fees so they have been able to preserve the value of investors money while still paying themselves well. Unlike PTM which also charges high fees and has had only minor outperformance (and still very negative absolute performance)

[mark100]

Took a modest position in TRG on the pullback under $5.50. Their latest FUM update was positive so it will be interesting to see how the half year earnings pan out.

Its hard to find value in this sector right now unless you think the market is going to charge ahead to 5500

[mark100]

Not a bad result from FPS. I took a small position late Friday and this morning. NPAT rose 25% to $4.1m of which $2.25m was in the second half. Cost growth was contained while revenue grew 7%. Market Cap is around $43m and they have $9.5m in the bank with no debt