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MQG, MACQUARIE GROUP LIMITED
rog
post Posted: Sep 26 2019, 05:00 AM
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In Reply To: nipper's post @ Sep 25 2019, 04:13 PM

(But the change ... 15 for the five year period but only 12% over it's lifetime ... hides a huge wobble, when investors got nervous as Macquarie had to morph it's model, post GFC)


But their ability to adapt to a new environment is remarkable.



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With money in your pocket you are wise, you are handsome, and you sing well too.

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nipper
post Posted: Sep 25 2019, 04:13 PM
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In Reply To: nipper's post @ Apr 24 2019, 01:26 PM

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Macquarie is often labelled the ‘fifth bank’ of the ASX, but in reality, traditional banking like credit cards and mortgages makes up a very small portion of this company’s earnings – around 12%. Macquarie’s real powerhouse is its investment banking business which is made up of its Macquarie Capital (MacCap) and Commodities and Global Markets divisions and accounts for around half of Macquarie Group’s earnings.

Another chunk comes from Macquarie’s Asset Management business, which has grown considerably over the past decade and now places Macquarie in the top 50 global asset managers, with $542 billion of funds under management. The company offers both a range of managed funds and other investment vehicles as well as its popular ‘Macquarie Wrap’ investment management platform.

So in comparison with the other big four ASX banks, I think Macquarie has a far superior and diverse earnings model, which has enabled it to return a Compounded Annual Growth Rate (CAGR) in earnings per share of 15% over the past five years and 12% since the company’s public ASX listing in 1996.

For the 2019 financial year, Macquarie posted earnings per share of $8.83 and a full-year dividend of $5.75 per share (which equates to a yield on current prices of 4.35%). This means that in FY19, Macquarie paid out 66% of its earnings as dividends. This is among the higher-yielding shares we are looking at today (with a payout ratio to match), but I think that Macquarie will be able to keep its earnings growing at double digits over the coming years, and its dividend as well (especially considering the dividends have been growing at 17% over the past five years).

(But the change ... 15 for the five year period but only 12% over it's lifetime ... hides a huge wobble, when investors got nervous as Macquarie had to morph it's model, post GFC)



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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nipper
post Posted: Apr 24 2019, 01:26 PM
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Macquarie Group is up 1.97 per cent this morning to an all-time high of $136.47.

This gives the 'millionaires factory' a market capitalisation of $46.4 billion and makes it the 7th biggest company in Australia, behind the four banks, CSL and two miners, but ahead of Woolworths, Wesfarmers, and Telstra.
- I've been thinking that Macquarie is probably as sensible a way of taking up some Private Equity exposure as any: there's a diverse set of assets, the management is lean, keen and hungry, the rewards pathway is approximately appropriate. And those pesky layers of ticket clipping are reduced by being in-house.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Mar 19 2019, 07:00 PM
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Wrapped in the Motley Fool spin is a kernel of reality
QUOTE
The size of [ ] falls may be the fault of the big banks, but I still think house prices would be falling even without the effects of the Royal Commission.

Foreign buyers have been pushed largely out of the market by higher government fees, more scrutiny and capital transfer limits by the Chinese government.

There has long been a prediction of apartment oversupply because of excessive construction. We are still going through this with more apartments being finished.

A very large amount of interest-only loans are expiring and switching to principal and interest repayments. This is believed to increase borrower repayments by around 30% a month, which may be unaffordable for some.

Today, the AFR is reporting that Macquarie is ending its ‘Bank of Mum and Dad’ financing and borrowing for self-managed super fund property investments. Family loan guarantees are no longer offered as of yesterday and lending to SMSFs for residential property will end by the end of April.

Macquarie said that technological and operational complexity of its white label business and the new regulations from the Royal Commission led the bank to make the decision to leave that segment.

Foolish takeaway

I think it’s probably a good move by Macquarie because the property market is heading downwards and this could raise the risk of bad debts for Macquarie.

Macquarie seems like a well-run ship with very competent management making good decisions to me,
but really, only a small part of their biz, and..... 2008, they were the first to pull the plug then, (others followed,and it all fell down) and will act in their own interest, the hard numbers guys, the bottom line, every time. No difference now

Don't believe a headline rate, read the small print. Safety in strength.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Sep 28 2018, 11:21 AM
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In Reply To: Mags's post @ Jun 30 2018, 11:59 PM

Macquarie Group Limited update on German lending transaction in 2011
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SYDNEY, 28 September 2018 – Macquarie Group Limited (ASX: MQG; ADR: MQBKY) (MGL) has
received a number of media enquiries about a transaction that is the subject of civil litigation in the
Munich District Court and is also being investigated by German authorities.

Macquarie Bank Limited (MBL) was a lender to a group of independent investment funds in 2011. The
funds were trading shares around the dividend payment dates where investors were seeking to obtain
the benefit of dividend withholding tax credits. The investors’ credit claims were refused and there was
no loss to the German revenue in relation to this matter.

In relation to the civil case, two of the investors have already sued the Swiss bank that introduced them
to the investment. They and other investors have now sold their claims to a German litigation Special
Purpose Vehicle controlled by the same lawyer who acted in the litigation against the Swiss bank.
Earlier this year, that vehicle brought a claim against MBL seeking €30 million in damages. MBL
strongly disputes this claim, noting that it did not arrange, advise or otherwise engage with the
investors, who were high net-worth individuals with their own advisers. Many, if not all, had previously
participated in similar transactions
.
The Cologne Prosecutor’s Office (CPO) is investigating the transaction. Although no current staff
members have been interviewed by the CPO to date, we understand the CPO will want to interview the
individuals involved in the transaction, which may number up to 30 people. This is expected to include
staff involved in the approval process, among them the MGL Chief Executive Officer (CEO) and the
CEO designate. In order to interview all these individuals, they are likely to be formally classified under
German law as persons of interest or suspects.

The CPO and other German authorities are also investigating many other transactions that occurred
around this time and earlier which did not involve MBL.

Macquarie will continue to cooperate fully with the German authorities. Macquarie notes that it has
already resolved its two other matters involving German dividend trading that took place between 2006
and 2009, where the authorities noted Macquarie’s “unreserved cooperation”.

The total amount at issue with the CPO is not material and, as previously notified, MGL has provided for
these matters. Macquarie was one of over 100 financial institutions involved in this market, from which it
withdrew in 2012. As part of a robust review process at the time, Macquarie received extensive external
legal advice in relation to its involvement and believed that it was acting lawfully.




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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
Mags
post Posted: Jun 30 2018, 11:59 PM
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In Reply To: blacksheep's post @ Jun 30 2018, 10:26 PM

Interesting.

Kinda like how the super fund managers never report the franking credits the members earned........

 

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blacksheep
post Posted: Jun 30 2018, 10:26 PM
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In Reply To: Mags's post @ Jun 26 2018, 09:30 AM

Macquarie still appears to be part of this ongoing investigation - https://www.bloomberg.com/news/articles/201...ce-german-probe

This investigation first surfaced back in 2014

QUOTE
The authorities are focussing on trades known by the moniker "cum/ex," a nod to how the trades are structured around the specific timing of dividend payments. The transactions typically involve banks, brokerage firms, hedge funds and wealthy individuals entering into agreements to buy, borrow and sell shares during a brief window of time around a dividend payout, the people said. The carefully coordinated timing of the transactions has produced tax-credit boosts for clients and fees for the banks, lawyers and traders said.


QUOTE
Lawyers and industry officials said that in a typical cum/ex trade, one party, say a hedge fund or brokerage firm, agrees to sell or loan securities just ahead of a dividend payment using an investment bank and sometimes another broker. Another party, in a different country, generally is lined up to buy the shares. "Cum" and "ex" refer to whether a dividend is factored into the price of the underlying stock.

The transactions are dizzyingly complex. They hinge on a lag between when stock loans and other trades are initiated and when they are considered completed, which is the result of wrinkles in the way many stock-market transactions are routed and processed. The result is that multiple parties can appear to simultaneously have owned the shares at the time of the dividend payout.

In some countries, dividend recipients are entitled to tax credits-akin to a voucher-to compensate them for taxes that theoretically would have been withheld from the original dividend payout. Lawyers say cum/ex trading strategies routinely have relied on more than one party appearing to tax authorities that they are owed credits, even if neither party actually paid a tax bill.

That means that international tax authorities have sometimes ended up doling out duplicate tax credits. The investors, bank and broker involved in the transactions divvy up the proceeds. Banks routinely amplified the trades by providing leverage, which boosted profits for all parties, lawyers and industry officials said.


https://www.theaustralian.com.au/business/l...5c4f4de5e39bb0b



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

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Mags
post Posted: Jun 26 2018, 09:30 AM
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It's been a nice ride. I got on board around $50 on the way down, went in on the capital raising at ~$26 IIRC.

Doesn't seem to have got it's hands too dirty in the RC so far.


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blacksheep
post Posted: Jun 25 2018, 03:37 PM
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In Reply To: blacksheep's post @ Nov 27 2017, 07:17 PM

QUOTE
Broke though the $100 barrier today - last time it was this close was 2007 when it briefly hit $98.64. Shortly after we had the GFC, which saw the SP go to a low of $24. Taken 10 years to get back


Updated chart - SP now $122.48.
https://www.shortman.com.au/stock?q=mqg
Attached thumbnail(s)
Attached Image


 




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: May 4 2018, 10:01 AM
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QUOTE
It's 10 years this month since Nicholas Moore took the top job at Macquarie and he will reveal today that the bank has never been in better shape. The full-year accounts to be published today are expected to show Macquarie's profit for the 12 months to March should be nearly $2.5 billion.

The market's consensus, according to Bloomberg, is $2.47bn but Morgan Stanley sits above that with its call of $2.49bn. A result of that size would well exceed the $2.2bn recorded last year and the composition of the figures will be analysed closely. The bank's stock last night closed at $107.75, which remains a record high.

https://www.theaustralian.com.au/business/d...678bdbe1dcde954





--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
 


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