Given that all the fund managers are cheap, it is hard to see why IFL is worth the effort to disentangle. Advice risk, execution & integration risk, remediation, in addition to all the other negative pre-existing trends (fee pressure, increased compliance).
Again, it is predicated on the idea that they’ve all effectively imploded, from a share performance perspective (and for some, from a relative to benchmark perspective too).
Easier to just take the sectoral exposure, or a pure play fund manager that doesn’t have the added complexity.
It is remarkable that MFG is at ~$14 from $70, whilst the US stock market has barely corrected.
Yes, I know plenty of idiosyncratic issues. But as a statement of fact, its interesting that they’ve been poleaxed without a particularly material fall in equities.
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