Ann: Change in portfolio value, page-5

I went to Melbourne briefing. Question of dividends was raised. They need to earn profits, but have a cushion of reserves they can use. I have not checked accounts to see what that provides. I am also uneasy that they have not done better in a falling market. It was why I bought them as a protection in a falling market. I asked whether they have macro bets (eg buy airlines and sell oils) or just use stock selection (buy 2 banks and sell 2 banks), but did not really get an answer. Some skewing by sector, but mainly the second option above I suspect. He actually said they remove risk, when in reality we are still exposed to poor stock selection. It is just a different risk to index linked market risk.