What is ‘value’ at the moment?
Given the recent falls in the Australian sharemarket - particularly banking stocks - we thought it would be interesting to review the top 10 holdings of the Australian large companies and value companies in your portfolio. As at 30 June 2008, the holdings in your Australian large company and value company portfolios were:
| Large Top 10 Holdings | Weight | Value Top 10 Holdings | Weight | |||||
| BHP Billiton Ltd | 16.29% | National Australia Bank Ltd | 8.47% | |||||
| Commonwealth Bank | 5.92% | ANZ Banking Group | 6.40% | |||||
| Telstra Corp Ltd | 4.85% | Origin Energy Limited | 6.10% | |||||
| National Australia Bank Ltd | 4.66% | Commonwealth Bank | 5.78% | |||||
| Westpac Banking Corp | 4.29% | Santos Ltd | 5.57% | |||||
| Rio Tinto Ltd | 4.01% | Foster’s Group Ltd | 3.93% | |||||
| ANZ Banking Group | 3.75% | Bluescope Steel Ltd | 3.59% | |||||
| Woodside Petroleum Ltd | 3.41% | AXA Asia Pacific Holdings | 3.36% | |||||
| Woolworths Limited | 3.30% | Onesteel Limited | 3.03% | |||||
| Wesfarmers Limited | 3.25% | Suncorp-Metway Ltd | 2.67% | |||||
| Total | 53.72% | Total | 48.91% | |||||
As indicated above, there is an overweight to financial stocks in your Australian share portfolios with high bank holdings in both the large company exposure, and the value company exposure. As you may recall, a “value” stock is one where the stock’s market price is less than the company’s net assets company, and is considered to be “undervalued” compared with the company’s assets.
If you would like to discuss the composition of your investment portfolios in more detail, please do not hesitate to contact us.