Flagship Growth Portfolio

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

15.66% Returns pa since inception to 31-8-21

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 31/08/2021 17:00
Portfolio	1m	3m	6m	1y	3y pa	ITD pa*
Flagship Growth	1.84%	5.23%	12.15%	26.81%	14.06%	15.66%
Target Return 10%	0.83%	2.50%	5.00%	10.00%	10.00%	10.00 %
Difference	+1.01%	+2.73%	+7.15%	+16.81%	+4.06%	+5.66%

* Inception date 10/05/2016

**Portfolio Holdings** UPDATED 14/09/2021 16:30 trade now
COMPANY CODE	STOCK NAME	WEIGHT (%)	RISK	TIME HORIZON	ENTRY DATE	ENTRY PRICE ($)	LAST PRICE ($)	DIVIDENDS ($)	GAIN / LOSS (%)
A2M	a2 Milk Co Ltd/The	5	High	Medium	17/02/2021	8.18	5.51		-32.64
ALU	Altium Ltd	3	High	Medium	25/05/2021	26.97	33.83	0.22	26.25
AWC	Alumina Ltd	4	Moderate	Medium	13/09/2021	2.20	2.16		-1.82
BHP	BHP Group Ltd	9	Moderate	Medium	21/08/2019	34.72	41.73	7.08	40.58
BVS	Bravura Solutions Ltd	4	High	Medium	9/06/2021	3.52	3.17	0.06	-8.24
CBA	Commonwealth Bank of Australia	5	Moderate	Long	13/03/2020	59.88	101.58	6.4	80.33
CSL	CSL Ltd	4	Moderate	Medium	16/03/2021	262.79	300.68	1.68	15.06
CSR	CSR Ltd	4	Moderate	Medium	3/08/2021	5.56	5.86		5.4
CWN	Crown Resorts Ltd	4	High	Medium	17/11/2020	9.69	9.64		-0.52
HUB	HUB24 Ltd	4	Moderate	Medium	7/04/2021	22.79	29.19	0.08	28.43
IAG	Insurance Australia Group	4	Moderate	Medium	12/08/2021	5.4	5.24	0.13	-0.56
IGO	Independence Group	3	High	Medium	23/08/2021	8.90	9.79	0.14	11.57
NAB	National Australia Bank Ltd	5	Moderate	Medium	16/06/2020	18.27	28.23	1.29	61.58
NCM	Newcrest Mining Ltd	7	Moderate	Medium	12/08/2020	29.35	24.47	1.24	-12.4
NWH	NRW Holdings Ltd	5	High	Medium	21/10/2019	2.31	1.86	0.05	-17.53
OZL	Oz Minerals	3	Moderate	Medium	23/07/2021	21.20	24.94	0.11	18.16
QAN	QANTAS	4	High	Medium	12/08/2021	4.52	5.43		20.13
STO	Santos	5	High	Medium	20/07/2021	6.3	6.49	0.11	4.76
WHC	Whitehaven Coal Ltd	4	High	Short	7/04/2021	1.62	3.09		90.74
XRO	Xero Ltd	5	Moderate	Long	2/04/2020	93.09	147.49		58.44
Z1P	Zip Co Ltd	3	High	Medium	14/07/2020	6.92	6.84		-1.16

Portfolio cash position: 6%

**Recent Sales** UPDATED 13/09/2021 17:00 trade now
Company code	STOCK NAME	WEIGHT(%)	RISK	TIME HORIZON	ENTRY DATE	ENTRY PRICE ($)	CLOSE PRICE ($)	DIVIDENDS ($)	GAIN / LOSS (%)
MND	Monadelphous Group Ltd	3	High	Medium	19/08/2020	9.89	10.1	0.83	10.52
LLC	Lendlease Corp Ltd	5	Moderate	Medium	4/05/2020	11.91	11.86	0.29	2.02
CBA	Commonwealth Bank of Australia	2	Moderate	Long	13/03/2020	59.88	106.44	3.54	83.67
NAB	National Australia Bank Ltd	2	Moderate	Medium	16/06/2020	18.27	27.29	1.29	56.43
CAR	carsales.com Ltd	3	High	Medium	17/05/2021	17.47	21.96		25.7
Z1P	Zip Co	2	High	Medium	14/07/2020	6.92	7.13		3.03
MP1	Megaport	3	High	Medium	22/09/2020	15.68	16.11		2.74
WHC	Whitehaven Coal	2	High	Short	7/04/2021	1.62	2.04		25.93
CBA	Commonwealth Bank of Australia	3	Moderate	Long	13/03/2020	59.88	101.33	3.54	75.13
NAB	National Australia Bank Ltd	3	Moderate	Medium	16/06/2020	18.27	26.6	1.29	52.65
RHC	Ramsay Health Care Ltd	4	Moderate	Medium	17/09/2020	67.64	63.57	0.69	-5
MFG	Magellan Financial Group Ltd	3	Moderate	Medium	7/09/2020	58.12	48.95	1.28	-13.58
VUK	Virgin Money UK PLC	4	Moderate	Medium	3/02/2021	2.62	3.49		33.21
EHL	Emeco Holdings Ltd	3	High	Medium	18/03/2019	2.13	0.94		-55.87
ALL	Aristocrat Leisure Ltd	3	Moderate	Medium	14/07/2020	30.93	35.75		15.58
BPT	Beach Energy Ltd	5	Moderate	Medium	11/12/2019	2.04	1.7	0.03	-15.2
AWC	Alumina Ltd	5	Moderate	Medium	15/05/2020	1.52	1.69	0.10	17.76
CBA	Commonwealth Bank of Australia	3	Moderate	Long	16/03/2021	59.88	87.54	3.54	52.1
OZL	OZ Minerals Ltd	5	Moderate	Medium	10/03/2021	19.16	21.5		12.21
CGC	Costa Group Holdings Ltd	3	High	Medium	17/02/2021	4.51	4.08	0.08	-7.7
S32	South32 Ltd	3	Moderate	Medium	8/02/2021	2.24	2.63		17.41

OPINION
ACTION

Opinions for stocks held in the Growth Portfolio

17/09/2021 09:34

HUB24 (HUB) $29.37

While HUB has made a fresh all-time high in late August to us it has a very different look & feel to the previous examples with the potential exception to CTD. We saw in June the stock make a fresh all-time high, dip and then rally again, we see no reason to believe this path won’t be repeated.

17/09/2021 09:33

National Australia Bank (NAB) $28.20

NAB has outperformed in the Banking Sector over the last 3-months rallying 4.4% compared to say ANZ Bank (ANZ) which has fallen 4.6%. At MM we are hoping to increase our exposure to the sector via VUK at lower levels and while a pullback in NAB wouldn’t surprise after this month’s fresh multi-year high we have no interest in risking losing our position here, especially with a healthy dividend due in November.

17/09/2021 09:30

Commonwealth Bank (CBA)

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%.

17/09/2021 09:25

Whitehaven Coal (WHC) $3.10

WHC rallied 2.65% on Thursday following approval for its Vickery mine extension but after making fresh 2-year highs the stock did surrender over half of the days early gains – we remain bullish WHC but it feels like a few weeks profit taking is close at hand following its 50% appreciation in just a few quick weeks.

17/09/2021 09:24

CSR Ltd (CSR) $5.96

CSR caught our attention yesterday after it broke out to fresh 14-week highs as it rode a wave of optimism towards the buildings stocks. We like CSR both fundamentally and technically with our initial target up towards the $7 region – the company is forecast to pay an attractive fully franked dividend in late November which should help this outlook.

16/09/2021 09:24

Xero Ltd (XRO) & Appen (APX)

Thirdly, a dip into the volatile IT Sector where high valuation “hot stocks” can fall from grace in the blink of the high e.g. so far in 2021 APX is down 60% while Wisetech (WTC) is up 67%, even Afterpay (APT) is only up 5% after enjoying a takeover bid.

16/09/2021 09:23

The Banking Sector

Secondly, as previously flagged MM has been watching UK based bank Virgin Money (VUK) into recent weakness i.e. over the last month NAB has rallied 1.5% while VUK has fallen 5%, not spectacular but still a useful performance differential if compounded over the year. MM has moved underweight the Banking Sector holding just 5% in CBA and NAB respectively...

16/09/2021 09:21

Whitehaven Coal (WHC) v Coal Price ($US/MT)

Whitehaven Coal (WHC) has already illustrated the benefits which can be delivered to investors when a stock finally plays some catch up to a galloping commodity price – WHC has now rallied 84% in just 6-months after ignoring the early appreciation in the underlying coal price.

15/09/2021 09:15

Altium (ALU) $33.83

ALU soared over 6% yesterday on no apparent news except the reawakening of M&A speculation after the increased bid for Sydney Airports (SYD) feels likely to be successful. We believe this software business is good value under $35 even after the company rejected Autodesk’s (ADSK US) $5bn bid which was rumoured to be pushed up to $40 before the suitor walked.

14/09/2021 17:14

Zip Co (Z1P) $6.84

Z1P -2.7%: the BNPL company held an investor day as they start to shape the conversation about other avenues of revenues. Zip are now looking to encourage customers to do more than just one off purchases through Zip with a digital wallet style offering including taking deposits, paying bills and even investing & paying with crypto the first hurdle.