Q: I own CSU at a 7.25% weight and also TOI and LMN around 5%. All have quite nice returns but do you feel CSU profitability could slow enough from the law of large numbers to trim a bit and reallocate to the offsprings? Thanks!
5i Research Answer:
We would have thought that last year as well! We can't comment on personal weightings, but CSU continues to hit new highs near-daily. The subsidiaries do likely have more upside potential currently, simply by having more leverage to M&A deals. It has only been 23 days, but both subs are performing better than the parent so far this year. We would be OK with an adjustment if an investor was OK moving down the market cap scale. But CSU remains solid overall and one of our favourites still.