Newton Investment Management fund manager Jason Pidcock is bullish on Australia following the general election.
Liberal leader Tony Abbott won the Australian election earlier this month, which saw the Liberal-National coalition take power for the first time in six years.
Pidcock is the lead manager of the £4bn Newton Asian Income fund. Following the election result, Pidcock has been adding to Australian equities in the fund and is now overweight in relation to the FTSE ALL World Asia – Pacific ex Japan index with a 29.1 per cent weighting in Australasia.
Pidcock says Abbott’s pledge to cut corporation tax from 30 per cent to 28.5 per cent bodes well for Australian businesses.
He says: “Most of the senior management we have met recently at Australian firms wanted this change in power. Abbott’s coalition should provide a more pro-business feel to the Australian economy, or at least less of a burden to the corporate sector.
”We have been adding to Australia and are now clearly overweight versus our index.”
Blackstone Moregate IFA Tom Wilcox-Jones says: “I am still worried the Australian economy is over-reliant on China.
“Recently, Australia has been benefiting from the Chinese boom because of resources demand and mining. If this tails off there is the potential for Australia to be impacted.”