Ann: FUM as at 31 December 2021, page-28

Hi All

I thought I would take a look at GQG top ten holdings and apply what I have been looking at with Magellan. I have taken GQG's top ten holdings and looked at a worse case scenario based on current EPS and forecast average EPS (all figures from yahoo.finance.com and are based on average forecast). Here is the GQG table:


Here is the Magellan table:


Some key points here:
1> Magellan Global Equity portfolio has fallen almost 8%, GQG has fallen just over 4% (GQG has fallen half of what Magellan has). Note, if you take Magellan's top 10 holdings, the portfolio falls by over 11%:

2> Based on reversion to the mean based on current year EPS, GQG's portfolio falls to almost 17%, compared to Magellan's fall to almost 27%
3> Based on reversion to the mean based on future EPS, GQG's portfolio only falls 4%, compared to Magellan's fall to 19%

Based on key points, GQG clearly has far superior downside protection and I would prefer to be invested in GQG's funds than Magellan's if the current bear market continues. Note, the performance is skewed by Netflix performance, but that is the whole idea of active management and picking better stocks.

Best of Luck
Lost