Contango have been defensive since January in all their risk segments. In a recent interview George Boubouras CIO at Contango highlighted that the market correction has presented an accumulation opportunity. “Earnings as of 30 June this year compared to the previous year for the ASX 300 when you adjust for the market cap was nearly negative 2%. We went into that thinking it would be +1% and that was downgraded from about 6.5% target 9 months ago. The point to highlight is corporate Australia is doing it tough when growing its earnings across the market… yes there is more value in the market and yes it is an accumulation phase but there is indicators that there is risks going on. What you don’t want is to be selecting stocks that will be cutting a dividend or shaving it like Woodside (ASX:WPL) but rather finding securities to give you reliable dividends going forward. Boubouras is expecting EPS to grind higher in the year ahead “by 3-4%...meaning an upward migration of the ASX 200, ASX300 and the All Ords.”