Owners of Magellan Financial Group Ltd (ASX: MFG) shares might want to brace for new competition as reports of GQG Partners‘ plan to list on the ASX emerge.
Right now, the Magellan share price is $42.48, having gained 0.3% today.
Let’s take a closer look at GQG Partners’ rumoured debut and compare the 2 asset managers.
Holders of Magellan shares beware: GQG Partners reportedly plans its IPO
Holders of Magellan shares might want to keep an eye out for upcoming initial public offerings (IPOs) as GQG Partners is reportedly planning to debut on the ASX before the end of 2021.
According to the Australian Financial Review (AFR), GQG Partners plans to front up to Magellan with an IPO worth more than $5 billion.
GQG Partners is an asset manager with most of its operations in the United States. Though, it has an office in both London and Sydney.
The fund has more than $82 billion of assets under management and provides its services to more than 778 organisations.
The AFR claims GQG Partners manages assets for Australia’s AustralianSuper, Rest Super and Cbus.
GQG is said to believe that listing on the ASX will boost its brand recognition among Australian investors.
How Magellan compares
Magellan shares might be shaking in their boots on news of a comparable asset manager’s planned IPO.
According to the AFR, GQG Partners likely believes it’s a better investment than Magellan due to its growth profile.
The publication states the firm’s assets under management have grown by nearly 100% since this time last year.
For comparison, Magellan reported its funds under management increased 9% in FY21. As of 30 June 2021, the ASX-listed fund was charged with managing $103.7 billion worth of assets.
Additionally, Magellan’s profits dropped 33% over the financial year just been.
The market reacted to the drop as one would expect. Magellan’s shares fell 10% on the back of its FY21 earnings.
Thus, it’s likely a bad time for Magallan, and those who own its shares, to learn a competitor might soon be encroaching on its block.
The post Own Magellan (ASX:MFG) shares? A $5b competitor could be hitting the ASX appeared first on The Motley Fool Australia.
Should you invest $1,000 in Magellan Financial Group right now?
Before you consider Magellan Financial Group, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Magellan Financial Group wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
More reading
- 2 quality ASX shares to look at this weekend
- Top brokers name 3 ASX shares to sell today
- BHP to sell assets to Woodside, Domain surges and Magellan crashes. Scott Phillips on Nine’s Late News
- The ASX reporting wrap-up: Magellan, Breville, Domain
- ASX 200 drops, Magellan (ASX:MFG) and Breville (ASX:BRG) sink after FY21 results
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3BvJxtG
Leave a Reply