Perennial eyeing growth in property, edging overweight resources and banks back in the spotlight

Perennial eyeing growth in property, edging overweight resources and banks back in the spotlight. Recent Hall of Fame inductee John Murray from Perennial Investments says he likes the outlook for property and infrastructure in Australia. To get exposure to this theme he sights stocks such as Lend Lease, Boral and Brickworks as good examples. He also says his fund is now slightly overweight resources stocks. The resource stocks have come off quite a long way and in terms of margins for safety they get big ticks. Their balance sheets are very, very strong and the cash flows remain strong notwithstanding the recent decline in the iron ore price. After being underweight the Banks for the past six months Murray says they are now under review. The grossed up yields by our numbers seem to be trading at around 8%. So when you compare that to term deposit rates banks are starting to look better value tan anytime in the past 6 months.

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