Quant Strategy Portfolio | May update – Banks for yield and Health Care for growth

Strategy outlook: The expected short term profit taking in May has pulled the market down to a yield weighted fair value market level of 5600. We expect the yield thematic to continue with growth outlook remaining very soft and RBA remaining on an easing bias. Current model portfolio: Materials – large (BHP); Transport – large (SYD, TCL); Consumer Services – mid (ALL), small (AAD, AGI, MTR, RFG, SGH); Media – mid (FXJ), small (VRL); Retailing – small (BRG, CCV, KMD); Health Care – large (CSL, RHC), mid (ANN), small (GXL); Banks – large (ANZ, NAB, WBC), mid (BOQ); Diversified Financials – large (MQG), mid (HGG), small (FXL, IMF); IT – large (CPU), mid (CAR); Telecommunications – large (TLS), micro (BGL). (VIEW LINK)