Australian Reporting Season Wrap – “Spending the stimulus” | Martin Currie - Australia
Reece Birtles Chief Investment Officer, Australia – Non Executive Director
Will Baylis Portfolio Manager
Lead-in expectations for Australia’s August 2021 reporting season were very strong and actual results overall were relatively sound, particularly dividends and balance sheet positions.
However, despite the positive earnings environment for the year ending June, forward expectations have been overshadowed by the ongoing lockdowns in Sydney and Melbourne.
We are less bearish than the market. Our analysis of the results has highlighted several positive themes that are promoting companies to use their government stimulus in ways that will improve their growth outlook once the lockdowns inevitably end, return excess capital to investors, and improve debt management.
Now, more than ever, we are seeing significant opportunities for Value style stocks to benefit as the vaccine rollout continues, and the Australian economy reopens and rebounds.
In our bi-annual reporting season paper (PDF) we discuss in finer detail:
our top-down analytical and aggregated view of the reporting season’s results for S&P/ASX 200 stocks.
a deeper dive into the issues and themes that are driving these results - based on the 100+ meetings with company management teams undertaken by the MCA investment team over the period.
the implications for Australian equities and our outlook for value and income style investors.
Some of the information provided in this document has been compiled using data from a representative account. This account has been chosen on the basis it is an existing account managed by Martin Currie, within the strategy referred to in this document. Representative accounts for each strategy have been chosen on the basis that they are the longest running account for the strategy. This data has been provided as an illustration only, the figures should not be relied upon as an indication of future performance. The data provided for this account may be different to other accounts following the same strategy. The information should not be considered as comprehensive and additional information and disclosure should be sought.