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.
AUTHOR
Hope William-Smith
Recommended for you
Bell Financial Group has appointed a chief investment officer who joins the firm from Clime Investment Management.
Private markets funds with “unattractive practices” could find themselves facing enforcement activity with ASIC chair Joe Longo stating he cannot rule it out in the future.
Despite ASIC concerns about private credit funds being accessed via the advised channel, there are questions regarding how high its usage actually is among financial advisers.
Challenger has looked to the superannuation industry for its appointment of a group chief investment officer, a newly-created role.
