Flagship Growth Portfolio

For those seeking an active approach to investing in large cap ASX stocks

15.01% Returns pa since inception to 31-03-22

About The Portfolio

The flagship Market Matters portfolio that provides an active approach to investing in ASX listed large cap stocks. This is a high conviction portfolio, will go to high levels of cash if warranted and can benefit from market downturns by investing in funds that inversely track the market.

**Portfolio Performance** UPDATED 30/04/2022 17:00
Portfolio	1m	3m	6m	1y	3y pa	ITD pa*
Flagship Growth	-2.66%	6.10%	0.65%	9.62%	12.38%	14.28%
Target Return 10%	0.83%	2.50%	5.00%	10.00%	10.00%	10.00 %
Difference	-3.49%	+3.60%	-4.35%	-0.38%	+2.38%	+4.28%

* Inception date 10/05/2016

**Portfolio Holdings** UPDATED 18/05/2022 17:00 trade now
COMPANY CODE	STOCK NAME	WEIGHT (%)	RISK	TIME HORIZON	ENTRY DATE	ENTRY PRICE ($)	LAST PRICE ($)	DIVIDENDS ($)	GAIN / LOSS (%)
ALL	Aristocrat	5	High	Medium	28/01/2022	39.66	31.6		-20.32
ALU	Altium Ltd	5	High	Medium	25/05/2021	28.80	28.39	0.43	0.07
BHP	BHP Group Ltd	6	Moderate	Medium	21/08/2019	34.72	47.01	10.05	64.34
BOQ	Bank of QLD Ltd	5	Moderate	Medium	04/11/2021	8.70	7.52	0.31	-10
CBA	Commonwealth Bank of Australia	5	Moderate	Long	13/03/2020	59.88	104.8	8.9	89.88
CSL	CSL Ltd	6	Moderate	Medium	16/03/2021	260.92	273.09	2.09	5.47
CSR	CSR Ltd	4	Moderate	Medium	3/08/2021	5.56	5.19	0.19	-3.24
GMG	Goodman Group	6	Moderate	Medium	12/01/2021	23.45	19.08		-18.64
HUB	HUB24 Ltd	4	Moderate	Medium	7/04/2021	22.79	24.29	0.19	7.42
IGO	IGO Ltd	3	Moderate	Medium	18/05/2022	11.11	11.25		1.26
MQG	Macquarie Group	7	Moderate	Medium	28/01/2022	184.61	181.5		-1.68
NCM	Newcrest Mining Ltd	5	Moderate	Medium	12/08/2020	29.35	24.87	1.39	-10.53
QAN	QANTAS	6	High	Medium	12/08/2021	4.56	5.52		21.05
RMD	ResMed	6	High	Medium	28/10/2021	34.67	27.91	0.1	-19.21
TPG	TPG Telecom	6	Moderate	Medium	13/04/2022	6.06	6.06		0
TWE	Treasury Wine Estates	5	High	Medium	03/05/2022	11.38	11.2		-1.58
WOW	Woolworths	5	Moderate	Long	8/03/2022	35.66	37.27		4.51
WPL	Woodside	3	High	Medium	26/04/2022	30.52	30.76		0.79
XRO	Xero Ltd	7	Moderate	Long	2/04/2020	92.85	88.42		-4.77

Portfolio cash position: 1%

**Recent Sales** UPDATED 11/05/2022 17:00 trade now
Company code	STOCK NAME	WEIGHT(%)	RISK	TIME HORIZON	EXIT DATE	ENTRY PRICE ($)	CLOSE PRICE ($)	DIVIDENDS ($)	GAIN / LOSS (%)
VUK	Vigin Money UK	6	Moderate	Medium	11/05/2022	3.48	2.61	0.01	-24.71
A2M	a2 Milk Co Ltd/The	5	High	Medium	03/05/2022	8.18	4.4		-46.21
WHC	Whitehaven Coal Ltd	4	High	Short	09/03/2022	1.62	4.06	0.08	155.56
AWC	Alumina Ltd	4	Moderate	Medium	09/03/2022	2.20	1.98	0.06	-7.27
OZL	Oz Minerals	5	Moderate	Medium	8/03/2022	21.72	26.42	0.32	23.11
NST	Northern Star	3	Moderate	Medium	2/03/2022	10.50	10.19		-2.95
STO	Santos	5	High	Medium	2/03/2022	6.3	7.6	0.27	24.92
APX	Appen	3	High	Medium	24/02/2022	11.76	6.25		-46.85
NWH	NRW Holdings Ltd	5	High	Medium	28/01/2022	2.31	1.56	0.05	-30.3
QBE	QBE Insurance	4	Moderate	Medium	28/01/2022	12.13	11.11		-8.41
BHP	BHP Group Ltd	6	Moderate	Medium	28/01/2022	34.72	46.9	7.08	55.47
FMG	Fortescue Metals	5	High	Medium	12/01/2021	17.06	20.92		22.63
IGO	Independence Group	5	High	Medium	23/11/2021	8.81	10.35	0.08	18.39
Z1P	Zip Co Ltd	3	High	Medium	11/11/2021	6.92	5.75		-16.91
NAB	National Australia Bank Ltd	5	Moderate	Medium	04/11/2021	18.27	28.52	1.29	63.16
CWN	Crown Resorts Ltd	4	High	Medium	28/10/2021	9.69	10.28		6.09
IAG	Insurance Australia Group	4	Moderate	Medium	28/10/2021	5.4	4.97	0.13	-5.56
BVS	Bravura Solutions Ltd	4	High	Medium	06/10/2021	3.52	2.85	0.06	-17.33
MND	Monadelphous Group Ltd	3	High	Medium	13/09/2021	9.89	10.1	0.83	10.52
LLC	Lendlease Corp Ltd	5	Moderate	Medium	23/08/2021	11.91	11.86	0.29	2.02
CBA	Commonwealth Bank of Australia	2	Moderate	Long	12/08/2021	59.88	106.44	3.54	83.67
NAB	National Australia Bank Ltd	2	Moderate	Medium	12/08/2021	18.27	27.29	1.29	56.43
CAR	carsales.com Ltd	3	High	Medium	3/08/2021	17.47	21.96		25.7
Z1P	Zip Co	2	High	Medium	23/07/2021	6.92	7.13		3.03
MP1	Megaport	3	High	Medium	23/07/2021	15.68	16.11		2.74
WHC	Whitehaven Coal	2	High	Short	16/06/2021	1.62	2.04		25.93
CBA	Commonwealth Bank of Australia	3	Moderate	Long	09/06/2021	59.88	101.33	3.54	75.13
NAB	National Australia Bank Ltd	3	Moderate	Medium	09/06/2021	18.27	26.6	1.29	52.65
RHC	Ramsay Health Care Ltd	4	Moderate	Medium	09/06/2021	67.64	63.57	0.69	-5

OPINION
ACTION

Opinions for stocks held in the Growth Portfolio

20/05/2022 09:26

Qantas Airways Ltd (QAN) $5.46

The iconic Australian airline has been grinding higher post COVID although it keeps falling short of our +$6 target area. This month the national carrier launched a takeover of Alliance Aviation in a scrip deal for over $900mn, we like this move which should immediately be earnings accretive but its had a limited impact on the share price. The company has a strong balance sheet and has done a very good job...

19/05/2022 17:25

Woolworths (WOW) $35.18

WOW -5.61%: it’s not often we see ‘Woolies’ down nearly 6% however the negative sentiment flowing from Target’s result in the US prompted a significant sell-off right across the retail sector in Australia, and not even staples were spared. Rising costs are the main issue here however it’s important to note that WOW and other sector players like Wesfarmers (WES) have not enjoyed the strength that the likes of Target have in the US which has seen their shares rally 2.5x in the last 2 years.

19/05/2022 17:19

Aristocrat Leisure (ALL) $33.73

ALL +6.74%: A tough day to bring out a good set of results, however, that’s exactly what ALL did and they still managed a solid session despite the overall market weakness. For 1H22 they produced adjusted net profit after tax of $580.1m which was up 42% year on year while they announced an interim dividend of 26cps. The composition of the result was strong and was well ahead of market expectations across the board, in the vicinity of...

19/05/2022 09:34

Woolworths Group Ltd (WOW) $37.27

Supermarket giant WOW is in the nice position of being able to pass on price rises to the customers and often increase margins during periods of high inflation. However, it’s not all one way traffic as their rising labour costs will be adding pressure to the bottom line, I’m sure more auto checkouts are in the offing. We continue to like WOW as a defensive play aided by its conservative but sustainable fully franked 2.6% yield.

19/05/2022 09:17

Xero Ltd (XRO) $88.42

MM has written about XRO a few times of late which is no great surprise considering it’s a stock we hold and it’s been absolutely hammered over the last 6-months. We continue to believe that this quality online accounting business has been the victim of valuation contraction as opposed to anything more sinister. We were asked about the company’s medium / longer-term outlook in Saturday’s “Ask James” report...

18/05/2022 16:58

BHP Group (BHP) $47.01

BHP +3.18%: The divestment of BHP’s oil unit is getting closer to completion and by extension the dividend returns to shareholders. Acquiror, Woodside Petroleum (WPL), received a final regulatory approval (National Offshore Petroleum Titles Administrator) on 17 May, the only outstanding condition now for the merger is Woodside shareholder approval, which is set for 2022 AGM on 19-May-22 (tomorrow). Based on the agreed merger...

18/05/2022 12:19

Flagship Growth Portfolio – Amendments

We are buying IGO Ltd (IGO) into recent weakness. We feel the uncertainty around the WSA deal and pullback in battery facing stocks is providing an excellent opportunity to buy into IGO.

18/05/2022 09:34

Active Income Portfolio

The portfolio added +0.32% for the week while cash remains at ~2%. Commonwealth Bank (CBA) was a strong performer adding +3.36% as they highlighted their leadership in digital banking with a bunch of innovative developments (CBA is so far ahead of the others on this), while APA (Group (APA) +3.25% & Stockland (SGP) +1.56% were also strong. Magellan (MFG) fell -8.25% to be the biggest drag.

18/05/2022 09:33

IGO Ltd (IGO) $10.91

The selling over recent weeks has been largely influenced by investors positioning as opposed to the long term outlook for a particular sector, or business. The battery materials names had become very popular through 2021 / 22 leaving plenty of room for a correction while ironically a number of fossil fuel stocks have enjoyed a great start to 2022 i.e. the crowd is often wrong.

18/05/2022 09:31

Flagship Growth Portfolio

The MM Flagship Growth Portfolio slipped -0.49% last week while our cash position has now risen slightly to 4%. Our performance was aided by TPG Telecom (TPG) +4% and Commonwealth Bank (CBA) +3.4% while CSR Ltd (CSR) -9.7% and Altium (ALU) -7.7% dragged on the portfolio i.e. our defensives remained the backbone through this uncertain period.