A less dramatic example was set by Commonwealth Bank (CBA) in August, before it traded ex-dividend in similar fashion to FMG. MM flagged this likely move for CBA and trimmed our banking exposure accordingly – we currently only have a combined 10% exposure to CBA & NAB in our Flagship Growth Portfolio compared to the sectors market weighting of around 20%.
As we have outlined earlier in the week our preferred scenario is MM tweaks our sector holding higher by buying Virgin Money (VUK) into further ongoing weakness.
