Investing in Financial companies is always a good idea, especially in a growing economy. The business model of these companies involves receiving a commission from the investors for the fund they manage, irrespective of the returns generated. Therefore, these Asset management companies (AMCs) generate cash flow throughout the year, especially when the stock markets are going up because that is when the maximum number of retail participation kicks in. Here’s an obvious list of some of the best-listed fund managers out there.
- Magellan Financial Group Limited (ASX: MFG)
MFG is one such stock that has consistently created the investors’ wealth over the years. Currently, the stock is trading at the all-time high levels since its listing. On 14th February 2019, the company had declared its 1HFY19 impressive results. The Average funds under management were up by 35% to $72.1 billion and Management and services fee revenue increased by 28% to $228.1 million. Currently, the stock is trading at A$35.230 as of 1 March 2019. The stock has offered impressive YTD return of 49.17% till date to its investors.
- AMP Limited (ASX: AMP)
When it comes to best fund managers, the name of AMP does not get unnoticed. On 28 February, the company stated that company’s director, David Victor Murray, acquired 280K ordinary shares at an average price of A$2.356 per share, effective 22 February. On 26th February 2019, the company announced that the director of the company Andrew Harmos had acquired 20,000 ordinary shares at an average price of A$2.33 per share, effective 22 February. This move is definitely a positive sign for investors. Although the stock has fallen quite a lot in recent years, but it is trading at a relatively fair price (as compared to the past years).
- Platinum Asset Management Limited (ASX: PTM)
Platinum Asset Management which manages a fund of $24.08 million (as of 31st December 2019) posted its 1HFY19 numbers on 21st December 2019 with the dividend of 13 cents per share. The numbers were on a weaker side with net profit plunging 27% to A$74.9 million from A$102.2 million. On the upside, the positivity of the management for the future attracted a lot of investors. The stock rallied even after “not so good” numbers and since then only making new highs. Currently trading at A$5.45 as of 1 March 2019. The stock has moved significantly up from the 52-week low of A$4.44, any correction in the price from here could be a good buying opportunity. The stock has soared by 20.52% over last one month.
- Macquarie Group Limited (ASX: MQG)
Macquarie, which is also considered to be one of the most defensive stocks, has grown investors wealth multiple times over the past few years. It is one of the top-notch global fund managers and has stood the test of time. On 12th February 2019, the company announced a briefing on their current operations. It stated the FY19 YTD net profit contribution from markets-facing businesses significantly increased on FY18 YTD primarily due to higher principal revenue in Macquarie Capital and other operational updates which again was a delight to the investors. The stock is backed by strong fundamentals and management and is not to be missed when looking for the best fund managers for a portfolio. The stock closed the day’s session at A$129.230 on 1 March 2019. The stock has provided decent YTD return of 20.39% till date.
- Janus Henderson Group PLC (ASX: JHG)
On 27th February 2019, Janus Henderson Group plc which is an asset management holding company and provides services to retail, institutional and HNI clients, published its full-year results for the year ended 31st December 2019. The revenue was up by 26.8% from US$1.81 billion in the year ended 31st December 2017 to US$2.30 billion in the year 2018. However, the asset under management (AUM) decreased from US$370.8 billion to US$328.5 billion in the same period. The decrease in AUM was mainly due to unfavourable foreign currency translation, increase in net outflows etc. The company has approved a buyback of US$200 million in the year 2019 in addition to US$100 million buyback during 2018. With overall mixed numbers, the company was able to impress the investors which is reflected in the stock price. The stock is already up by more than 11% from the past month (as of 28th February 2019) and is only making higher highs.
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