Alcoa Corporation (ASX: AAI) is a global producer of aluminium, alumina and bauxite. The company continued its outperformance during November as the global aluminium market tightened, with China reaching its capacity ceiling, structural deficits in the US and Europe and accelerating demand across the globe. Alcoa Corporation is also implementing several initiatives to increase productivity, reduce costs and optimise its asset portfolio. We see the structural demand supply imbalance in aluminium persisting and given Alcoa Corporation’s attractive valuation relative to global peers and ongoing operational improvements, the company remains a core holding in the WAM Leaders investment portfolio.
CSL (ASX: CSL) is a global biotechnology company developing plasma therapies, vaccines and treatments for rare diseases. The WAM Leaders investment team attended the Capital Markets Day in the US during November and met with the CSL management team, touring the manufacturing facilities and plasma collection centres in Kankakee, Illinois and Holly Springs, North Carolina. The team were encouraged by the additional disclosures on demand drivers for immunoglobulin products and CSL’s initiatives to grow market share, as well as progress in reducing plasma collection and fractionation costs. The insight gained during these meetings have strengthened our confidence in CSL’s earnings profile and we see valuation support at the current share price.
