You answered your own question. Approx 20% of funds are invested in FAANGs.
The other 80% is MOSTLY but not all, in stocks with lower price to book or lower PE or lower weighting in the indices or lesser reoresented industry sectors than MSCI.
I don't like US overweight as that is ground zero of the next market decline. Then again what the hell do l know.
MFG is an Investment manager (not an investment fund) but it is not being valued consistently by the market, in my view.
Performance is important to FUM, so understanding the underlying asset allocation is relevant, but it should not determine the SP on a daily basis. Yet it does.
The market ultimately is made up of people (including institutions) and people need a narrative to believe in. Right now it us a failed marriage, a lost mandate and a mistaken investment call. A perfect storm to send people selling and running, casting stones, claimng higher ground.
We are less than 2 months into this crisis, so if course it remains unresolved with more questions than answers. However, the share price has been set by the voters. It is in the "sin bin" unloved and widely hated.
This is why contrarian investors are interested in the business. Are the voters right or will the weight of 14 years of investment success, no debt, free cash flow and seeded new businesses win the day in the long term.
No one knows.
I have a far greater investment in PTM than MFG as l believe they grace a greater ability to deal with down markets having been a PIF investor for over 26 years with a compound net return matched by my own active tilts that has been a 20 bagger.
MFG will not be that. I see a business model that is out of favour with many here so consumed by their faith in passive funds they will not accept anyone can beat an index. Not Buffet, not Druckenmiller, not Nielson and certainly not Douglass.
I try not to hold onto any belief. If facts change so will my view. I know l am just an investment mug not a guru, so listen as much as l can to the best minds in many industries to form an opinion.
I believe MFG will recover in 2 to 3 years after the market falls and the cream rises. I will invest, with plenty of dry powder at hand, on that basis.
l did not want to be taken out of the SYD game by industry funds. Bad luck for me this week my wishes were dashed and instead l will be given a ton if cash.
Maybe they are doing me and other SYD holders a favour, who knows. What l can say is that with SOME of that cash, l will be buying more MFG, unless there is some event that changes the underlying position of the MFG business. At the current price, they could lose another 25% of their mandates and still be fairly valued if they stick to their defensive investment approach.
These are my views only, not advice DYOR. I don't want to own one passive fund when they are all hostage to the same flows. I want people who observe, process, think and decide on what is best looking forward, just like most investors do.
MFG and MGF do that.
GLTASH
MFG Price at posting:
$18.51 Sentiment: Buy Disclosure: Held
(20min delay)