This week our Global Equity Growth Portfolio investment manager Calamos Investments, reviews the equity market and the sectors that are believed to be safe havens. Are we placing false hope in our belief that we are being conservative in our investment strategies?
This is a great example of a typical investment for the TAMIM Australian Equity Value portfolio, a situation where a former market darling goes through a number of profit warnings and is aggressively sold down by market participants. These situations quite often culminate in a company that is under followed and unloved. Management effect a turn around and this is not realised by the market. These are the type of investments we enjoy in the TAMIM Australian Equity Value portfolio.
This weeks stock pick is from the manager of the TAMIM Global Equity High Conviction portfolio. Bank of Montreal shows significant value for shareholders from its low volatility, growing earnings stream. Dividends have increased in line with earnings and are kept at a sensible level of around 40-50%. This is far more reasonable compared with the dividend overpaying of Australian banks where the average payout ratio is around 78%.
This week the portfolio finds itself exiting a long time holding Broadspectrum Limited. The company has seen its share price jump 32.1% to $1.48 over the last week, after the diversified services and contracting company decided to accept the takeover bid from Ferrovial. The company’s board had rejected the Spanish infrastructure and services giant’s advances previously, but have now unanimously recommended shareholders accept the $1.50 cash per share bid.
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TAMIM Asset Management provides general information to help you understand our investment approach. Any financial information we provide is not advice, has not considered your personal circumstances and may not be suitable for you.