Quality counts in the long run



Emilio Gonzalez
The latest market turbulence should serve as a reminder of the long-term role that quality investments play within investment portfolios, according to Emilio Gonzalez, Perpetual group executive — Australian and global equities.
“In the case of both equities and income securities, it makes sense for financial planners to build portfolios around a core of quality companies throughout the investment cycles.
“Perpetual has always focused on quality regardless of market conditions,” Gonzales said, selecting stocks based on conservative debt levels, quality of business, a history of recurring earnings and sound management.
He said Perpetual applies the same principle to investing in income securities, looking at quality factors first, followed by valuation.
“Quality provides downside protection and liquidity, which is absolutely critical to capturing long-term returns in income markets, while value enables investors to lock returns in over the cycle.”
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.