What positional changes have you made that reflect your view of the market?
Margins in SME business banking are far more stable and reliable than mortgages, and being a newer bank with modern systems allows them to control costs and get good leverage as they grow revenues.We’ve long been a supporter of Macquarie Group. Initially, the market was completely missing the transformation of the group from what it was pre-GFC to the asset management powerhouse it is today, as well as the benefits from the lower interest rate and high liquidity world we were in post-GFC.
, which causes a natural lowering of their “active” weight in the portfolio. Whilst we maintain an overweight position due to our high conviction in the earnings and capital management outlook, we are also cognisant from a portfolio view to not have a too significant overweight in such a large stock.
but the execution could arguably have been better. Strategically, Playtech is a very good fit for Aristocrat. They brought their leading content, as well as close customer relationships and strong standing with US regulators, to leverage Playtech in the US, a potentially very large iGaming market that continues to grow rapidly.National Australia Bank results continue to impress