Chris Prunty from Ausbil on Glen Stevens' call for Animal Spirits

Chris Prunty from Ausbil on Glen Stevens' call for Animal Spirits. He's right... We want to allocate capital to small businesses that will be much bigger in time so Stevens' comments resonate with us. You can't cost cut your way to revenue growth. We also believe that the Australian market's focus on dividends is a potential source of pain for investors in the future as interest rates normalise and investors go back to looking at growth, balance sheets and incremental returns on capital. With a two to three year view we see some potential pain in the favoured high yield sectors of today. Our preference is for companies that prosper regardless of the macro-economic environment. Playing at the smaller end of the market affords us the luxury of a wide opportunity set of companies with strong reinvestment opportunities that will allow them do well regardless of what economic scenario unfolds.