New positions we have added
This week we small position to a new name to your portfolio in ANZ Bank.
· One of the “Big-Four” banks in Australia
· Provides retail, corporate and institutional banking.
Investment thesis/what we like
· Purchased at below book value – that is at a value that reflects existing loan book and prices in little future growth. Putting this into context – a “Big-Four” bank has not been as cheap (on this metric) since 1991.
· Source of income in the portfolio and likely to pay a meaningful dividend at purchase price, even after expected cuts.
· Likely to maintain competitive advantage conferred by economies of scale, key role in the economy and funding cost advantages.
· Benefit from COVID-19 through fiscal/monetary support measures being delivered.