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
BT is to launch a new low-cost “Focus” investment menu for its Panorama platform this October, in partnership with Vanguard, seeking to compete with industry superannuation funds.
Net gains of financial advisers have already doubled since the start of FY25, according to this week’s Padua Wealth Data, with momentum gathering pace far faster than the previous financial year.
National advice firm MiQ Private Wealth has appointed a new chief executive to lead the business through a “transformative era” after penning a partnership deal with AZ NGA earlier this month.
WT Financial’s managing director, Keith Cullen, believes the firm’s Hubco model with Merchant Wealth Partners will be a “repeatable growth model” for the business as it scales its adviser numbers.
