Why Australian equities?
We expect that Australian shares will continue to outperform those in the US given that inflation is also higher in the US than in Australia. In addition, the nation’s largest companies are the big miners and other ‘value’ shares which are relatively more resilient to inflation and higher bond yields.
Some summary comments are as follows:
- Australia – a beneficiary from inflation primarily through hard and soft commodities.
- Commodities an obvious winner – significant benefit across the economy as national income and terms of trade rise.
- Debt to GDP ratio manageable especially relative to other developed nations.
- Access and benefit from Asia and the rise of India and China.
- A safe haven from the Ukraine war both through geography, independency and as an economic beneficiary - eg wheat, oil, gas, commodities etc
Beanstalk is an Australian manager established in 2004 and manages funds for pension funds, institutional investors and asset managers. Beanstalk run by Tim Savage who previously managed AUD 10 Bn for Deutsche Asset management has continually outperformed the ASX 300 Accumulation index.
The AMC is based on the beanstalk Australian shares portfolio.
AMC Key terms:
Please find here: term sheet, fact sheet and presentation.