News & Insights

Markets lost ground again in April. The S&P/ASX300 Accumulation Index (benchmark) fell -0.8% but held up better than the MSCI World Index in AUD which fell -3.1%. Quantitative tightening came into focus following comments from Fed Governor Lael Brainard, which saw bond markets sell off sharply and helped trigger the renewed decline in equities. In Australia, the RBA also pulled forward expectations of a rate hike.

A tightening cycle occurs when central banks implement a cycle of interest rate hikes. This course of action is usually undertaken to slow down economic growth or to curb inflation.

In this report, Nancy Fox, Chairman of PIC and Vince Pezzullo, Portfolio Manager provide insight into the strength of PIC’s dividend position and how macroeconomic factors are impacting the way we are investing.

February was marked by rising global volatility in markets with tensions boiling over on 24 February with Russia invading Ukraine and marked the first large scale war between two European countries since World War II. Commodity prices rose over the month – and sharply beyond it - as the toughest economic sanctions ever imposed on Russia raised fears of shortages in global energy markets and risks of economic contagion as Russia and Europe risk falling into recession. Whilst this hurt global markets, it was a benefit for Australia’s resource heavy bourse.

Blue Chip stocks refer to stocks from companies considered to be a high quality and a relatively low-risk investment. The term applies to companies that have performed well over a long period, have a good reputation and a track record of paying dividends.

For investors, it is essential to understand the potential impact that geopolitical events can have on the business activities of companies they are invested in. Examples include governments that expropriate assets, impose stringent regulatory requirements or limit foreign direct investment.

The Perpetual Equity Investment Company Limited (ASX:PIC; the Company) has announced an operating profit before tax of $27.9 million and an operating profit after tax of $21.8 million for the six months to 31 December 2021.

Monetary stimulus describes the actions taken to manage an economy’s money supply. Usually this involves a government or central bank trying to increase the total amount of money in the economy and decreasing the cost of accessing it.

In this article, Vince Pezzullo discusses four recent PIC stock purchases and reveals what has caught his attention and why we like their prospects.

Watch the replay of our recent PIC Investor Management Update as we reflect on how the company performed in FY21 and the Board’s approach to governance.

Fiscal stimulus is an important tool for policymakers to consider and governments to implement. Broadly, examples can include tax cuts or government schemes to shore up household and business demand for goods and services during, or to prevent, a recession.

In this report, Nancy Fox, Chairman of PIC and Vince Pezzullo, Portfolio Manager provide insight into how PIC has achieved strong performance for FY21, and their outlook on equities in FY22.