Investment Matters

Company News

New positions we have added

This week we small position to a new name to your portfolio in ANZ Bank.

 Company background

· 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.