Fairly reflective tone in the IFL AGM today.

Good recognition of market concerns, and of areas for improvement. No downgrade, to the degree that the collapse in the share price seemed to imply. Digesting MLC a big job but nearly done.

The market continue to put little stock in the below earnings trajectory, as implied by the 7x forward PE.

The problem with PE’s for fund managers (even those with platforms) is that the money can leave, and thus the E can be much less reliable than you think.

The problem with advice is that it is very difficult to do at scale, safely, and profitably. At some point the industry has to do better with the formula, and IFL’s approach seems reasonable. Not for the faint-hearted, and you certainly can’t point to any manager in Aus that appears to be doing it well (e.g. AMP, PTM, MFG, IFL, PPT), but the sector is cheap and out of favour and that is often fertile ground for finding high risk high reward trades.

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