MM Portfolios vs Shaw & Partners Portfolios

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Question asked 31/01/2021

MM Portfolios vs Shaw & Partners Portfolios

“Hi James, Can you explain the difference between the Market Matters portfolio performance and a separately Managed Account with Shaw’s? Are your Ideas the same as theirs? If the majority expect a pullback soon does that mean it’s not likely to happen? Is it possible to get a view on the big picture for markets going forward based on fundamental Economics. Does the market ignore fundamentals?” – Cheers Marvin C.

Answer

Morning Marvin,

A number of questions here hence again the bullet points:

1 Shaw’s have a suite of their own SMA’s that are driven by Shaw Research and Shaw’s investment team, not me. They also hold managed funds and use international managers for the international component. These are all constructed under a goals based investment methodology. I.e. if the investment goal is income then the funds will be allocated into about half a dozen sub portfolios to meet that goal. As I said, the actual stock picking is done by Shaw.

2 The MM SMA’s are managed by me and our investment committee. They are aligned with our Growth and Income Portfolios. Our ideas at MM are very much our own although obviously I am influenced by my daily interaction with our Shaw analysts plus we have an agreement in place with UBS to utilitize their research resources, however I am not in any way obliged to follow either Shaw or UBS calls for the MM portfolios.

3 On the pullback front when too many are looking for them often the are simply shallower and quicker resulting in most investors / traders missing the opportunity.

4 The market never ignores fundamentals longer term but short term noise is just that, MM is bullish equities due to the huge tailwind being delivered from central banks stimulus as they adopt a whatever it takes approach to kickstarting economies as the COVID vaccine is rolled out across the globe.

MM remains bullish stocks through 2021

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ASX200 Index Chart

LAST UPDATED 25/01/2021 16:18

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