Domestic growth remains below trend with the economy continuing to navigate a period of transition

Domestic growth remains below trend with the economy continuing to navigate a period of transition. Consumer confidence remains low following the federal budget, despite some recovery in the retail sector in July. We retain the view that it is hard to see the management of consumer discretionary companies being upbeat in the August reporting season given that trading at the start of the new financial year is likely to be subdued. Overall, it remains our view that a broad based economic recovery will not commence until calendar year 2015. Ahead of the August reporting season, we thought it would be helpful to provide investors with a quick snap-shot of our preferred thematics, those which we are cautiously watching and those which we are avoiding. You can access the report here: (VIEW LINK)