Equities

The ALP’s controversial franking credit policy, coupled with the tax-loss selling heading into June saw discounts widen across the board. As a result, attractive opportunities arose with many large and reputable LIC/LITs trading at historically large discounts.

Our key commodity call for 2020 is the unwinding of the drought induced dislocation between domestic cattle prices and export meat prices on a normalisation in weather patterns. Our three stocks carry varying degrees of exposure to this dynamic.

Our 2020 top three picks, MQG, SUN and IAG, possess strong risk management capabilities and defensive qualities including healthy balance sheets and surplus capital that could be returned to shareholders.