Stocks
SUN
SUN management doing a good job of breaking down the basics as clearly as they can, at the AGM.
Assets and liabilities are designed to match, and bond holdings are held to maturity, so the balance sheet impact is modest.
However, there’s an unambiguous P&L gain from higher running yields.
Insurance companies are one of the few sectors to benefit from repricing of rates, and it is by far our largest overweight.
WPL/STO/ORG
An interesting graph on the supply curve for LNG projects. Australia has a very material advantage in iron ore, coal, alumina, copper. But we aren’t that amazing in LNG extraction.
Something we think about in the current environment, given we have zero energy exposures across our direct equities.
Mind you, our active managers have enough exposure for the both of us.
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