Conditions have been good for funds management in recent years. The stock market has been rising, funds have been flowing, and for some, performance fees have been paid. But nine years after the end of the GFC, has ‘the easy money been made’? To find out, we asked Chris Prunty from QVG Capital and Chris Stott from Wilson Asset Management for their view on three local funds management firms, and they also nominate their top ‘Buy’ from the sector. Prunty says one of today’s nominees is “one of those stocks you can put in the bottom drawer and come back in three to five years.” This week’s episode is hosted by Matthew Kidman from Centennial Funds.
Key points:
- Platinum Asset Management has recovered well over the last year, but following the retirement of Kerr Neilson, has it overshot to the downside?
- Pinnacle Investments owns a 23% stake in one of Australia’s fastest growing funds management firms, Antipodes Partners. But is that enough to justify its lofty price?
- Class benefitted from the move to cloud-based products, but competition has been hot on their heels. So, is it time to dismiss Class?
- Chris Prunty and Chris Stott each nominate their top ‘Buy’ from the funds management industry.
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Melville Leslie
Hello gents, Just a question on the comment about PNI. if it is a 'buy ' due to its large 23% holding in 'Australia’s fastest growing funds management firms' , APL, which will benefit PNI then why wouldn't you buy APL instead? As you say PNI is 'expensive' but APL trading below market value. And with global exposure at this juncture of a bull-market isn't it well positioned to benefit from expected change? Also can we see a chat about ALF and what the truck is going on there? Thanks for the platform I really enjoy the insights. Regards M.
Patrick Poke
Hi Melville, I can't speak for the contributors, but it's worth noting that APL is a Listed Investment Company. An LIC exposes you to the strategy of the manager, while PNI owns a stake in the management company itself.