Earnings certainty not reflected in MQG
Macquarie Group (ASX:MQG) looks reasonable value at the moment trading at a 33% discount to the Industrials ex Banks vs. the five year average discount of 25% on a 5.6% dividend yield. It appears to us that its earnings are transitioning from more volatile investment bank-style earnings to annuity-style funds management earnings. We believe this transition will decrease its earnings volatility, but we feel this has yet to translate into its valuation. In the next few years, we also expect it to realise a number of performance fees from its less liquid funds. (Don Hamson, Managing Director)
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Don has over 25 years investment management experience. He founded Plato Investment Management Limited in 2006.
Prior to Plato, Don was Head of Active Equities, Asia Pacific and a member of the global Senior Management Group at State Street Global Advisors, responsible for over $10B in active and enhanced equity investments. Earlier he held various positions at Westpac Investment Management, including Chief Investment Officer, Head of Equities. During his time at Westpac he was also instrumentally involved in the mergers of BT and Rothschild.
Don has a strong interest in responsible investment and governance. He has a PhD in Finance and a Bachelor of Commerce with First Class Honours from UQ, and a University Medal.
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Don has over 25 years investment management experience. He founded Plato Investment Management Limited in 2006. Prior to Plato, Don was Head of Active Equities, Asia Pacific and a member of the global Senior Management Group at State Street...
Expertise
Don has over 25 years investment management experience. He founded Plato Investment Management Limited in 2006. Prior to Plato, Don was Head of Active Equities, Asia Pacific and a member of the global Senior Management Group at State Street...
Expertise
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