Private Portfolio Managers (PPM) has been managing share portfolios for wealthy individuals for nearly 30 years and has more recently been providing SMA’s (Separately Managed Accounts) in both Global and Domestic equities. The SMA format provides greater efficiencies for Advisors and has the benefits of direct ownership for their clients.
Recently there has been a shift from pooled funds to portfolios of shares held directly in the client’s name. The advantages of directly held shares are now widely recognised as providing greater transparency and tax advantages.
In an SMA, clients do not run the risk of having to assume legacy capital gains that may be present in a pooled fund. The Advisor and their client can see every transaction that is made, which provides the ultimate insight into how their portfolio is actually being managed.
Clients like the fact that they are the beneficial owner of the stock, they have liquidity and receive the income and franking from their stocks directly. Additionally, they have the comfort of having the portfolio managed by a professional team with a long and successful track record.
PPM follows a disciplined investment strategy that has survived the difficult times in the markets over the last quarter century. These have included the Asian currency crisis in the late 1990s, the tech wreck in 2000, the GFC, Covid and the second collapse in technology stocks two and a half years ago.
The answer for PPM is not to try to pick market turns, an unreliable approach, but rather to select stocks that can weather the more challenging times. This has proven to be a very successful strategy over the last 28 years and PPM is confident that it has the best chance of delivering attractive long-term returns for investors.
The typical portfolio contains 20-25 stocks selected for their return on shareholders capital, their financial strength and attractive price. The objective is to preserve capital and growing earnings over time rather than aggressively trading and using other high-risk approaches. PPM focusses on building and actively managing portfolios in a measured way.
Turnover of stocks in the portfolios is very low, this minimises costs and reduces the impact of capital gains, which is important, particularly for individual investors.
PPM’s investment team has been working together for a long time, with the CIO, Hugh MacNally, being the founder of the firm. The senior members have been with the team for 15-20 years. To make sure that the team is fresh PPM has brought in analysts that are in the early stages of their careers and bring new perspectives. However, the philosophy underlying the investment decision making remains the same.
PPM’s Global SMA has been a finalist in the IMAP awards three times in the last five years.
The only thing that PPM does is manage investment portfolios, taking on a task that many Advisors now prefer to outsource to a specialist. To support Advisors, PPM provides direct contact with the investment team for Advisors or groups of their clients if they wish. This is sometimes useful during difficult periods.
Please contact Warren Jones, Business Development Manager, if you would like to find out more about SMAs and what PPM has to offer on 0422 819 116 or drop him a line at wj@ppmfunds.com.
To view recent performances by PPM please click on Australian Equities SMA Mar 2024 or Global Equities Mar 2024.