AFIC likes NAB and St George

Australian Foundation Investment Co, Australia's largest listed investment company, said it was slightly overweight in the bank sector, with 26 per cent of its portfolio spread across the four major banks, St George and other smaller players. AFIC said the rapid growth in mortgage loans was not a major concern, but said there’s “never been a boom where there wasn't a bit of brittleness at the edges. We don't quite know at this stage who is holding [poorer quality loans].” AFIC said they were buying more shares in National Australia Bank and St George.

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