Market volatility a plus for Perpetual Equity
Attracting strong investments and recording positive growth is possible in a volatile market if a disciplined investment approach is pursued, according to Perpetual Equity Investment Company (PIC).
PIC has announced an operating profit before tax of $31.5 million and an operating profit after tax of $22.7 million, which represented a 76 per cent increase on the first six months of 2016. PIC portfolio manager, Vince Pezzullo, said: "Market volatility provides an opportunity to buy quality companies at attractive prices."
"We will remain patient and maintain our focus on identifying quality companies that can deliver strong returns for the portfolio, with the objective of providing shareholders with a growing income stream and long term capital growth."
The PIC board had also announced an interim fully franked dividend of 2.2 cents per share, up 175 per cent on the first six months of 2016.
The interim dividend is set to be paid on 17 March. The overall portfolio performance for PIC in the six months up to December 31 was 11.2 per cent - an outperformance of the benchmark by 0.8 per cent.
Pezullo said the portfolio had delivered a strong performance against global volatility and was the result of a strongly disciplined investment approach. The portfolio held 67 per cent in Australian securities, 14 per cent in global securities and 19 per cent in cash at 31 December.
Recommended for you
As ASIC chair Joe Longo pushes firms to prepare for the upcoming mandatory climate disclosure regime, what skills are necessary if firms are looking to expand their ESG teams?
First Sentier Investors has announced it will close four of its Australian investment teams amid a simplification of the business, with $14 billion expected to be returned to investors.
Over 90 finalists have been chosen to compete at the 36th annual Fund Manager of the Year Awards, to be held in Sydney on 13 June.
Clients may be asking their adviser whether there is still value in the US technology names after their rally, but Fidelity International’s Lukasz de Pourbaix believes they can still offer upside.