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Hoping this post finds all of our clients and their families safe and secure in these unique times.  We at P3 Financial Planning wanted to touch base with you at this time to provide you some information and data that we have been gathering from the fund managers that you hold within your portfolios.

Please note that the below is of a general nature, it is not intended to be an investment signal for you but rather some helpful feedback in a time, no doubt, when everyone has been inundated with facts and figures, that to be honest can often provoke fear rather than hope.

The last few weeks, we’ve been proactively contacted by all of these  fund managers, some of which like Perennial or Perpetual are groups we have supported for the past 20+ years.  Be safe in the knowledge that since these are active managers and they’re regularly addressing necessary adjustments to their holdings that we are confident to hold these funds, and support them as we have over many years and previous periods of uncertainty.

Here are some thoughts from their Lead Fund Managers and/or Managing Directors;

Fund Manager updates (in no particular order)

Magellan Asset Management

Some of you had the good fortune to hear from Hamish Douglass when he presented on the Magellan Roadshow last month.  Hamish has recently raised the cash position in the Magellan Global Fund from 6% to 15% and has indicated that while they are comfortable with the current portfolio they are by no means complacent.  Hamish, and his team continue to assess the issues and are stress testing the portfolio on a stock by stock basis.  The Magellan Global Fund has held up extremely well in the short term, whilst still maintaining their long term goals and objectives.  See the table below for an estimate of the fund’s performance in recent market sell off (from 21/2/2020 to 25/3/2020).  You will note that the fund is 5.58% above the index during this time.

Source:  Magellan Financial Group

Janus Henderson

Some key points from their recent webinar:

  • Countries that lock down now will be the countries that are the fastest to come back online, but they may not reopen their borders so the domestic economy will pick up before the external sectors.

Investment Strategy

  • Firstly, the portfolio has behaved as expected in such a shock environment.
  • They are buying high quality names that we know are going to be in business on the other side.
  • While Janus Henderson expect to witness more volatility over the coming months, the forward looking returns look attractive.

– source Janus Henderson Adviser Webinar 20/3/2020

Fidelity Investments

James Abela, Portfolio Manager of  the Future Leaders Fund indicated some real positives that are a confirmation of  their disciplined process.  Pointing to moves that were made in March 2019, through to last August such as taking on higher exposure to Gold, Healthcare and Quality focussed stocks, the fund has continued to remain within the top 10% of its peers throughout this down turn.  Also over the long term this fund has been near 7% above its peers and benchmark.  The fund has been around since 2013.   James alluded to the 120 Portfolio Managers, Investment Professionals, Research Analysts and other support staff within the global Fidelity Group that they have ready access to.  The collegial approach that the group prefers means that at any moment he can pick up the phone to any of these professionals around the globe for up to date information and guidance.

– source Webinar with James Abela PM Future Leaders Fund

Perennial Value Management

At our Back to Business Professional Development Day in early February, we had the good fortune to have John Murray, Managing Director attend and present for the 2nd year running.  It feels like an eternity since then yet in the meantime Perennial has conducted a webinar series addressing the rapid change and how they are adapting to a fast moving situation.  As a value manager they have often been in a great position to benefit from sharp market downturns in the past.  An example used in their webinar by Andrew Smith on the Perennial Value Smaller Companies was the recovery period post GFC for the fund was approximately 2.5 years to return to previous highs, which compares extremely favourably with the Small Ords index which took approximately 10 years.

– source Perennial Value Management Webinar Presentation:  18/3/2020

We are in this together (while practising advised distancing measures!).  Stay safe everyone, and where allowed, support small business.

As always, Jim, Jon, Maria, Blaine, and our helpful staff are only ever a phone call away.

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