News & Insights

Volatility in the context of financial markets refers to rapid stock price fluctuations. But while investors often only associate volatility with market crashes, it also creates opportunities to buy shares at a cheaper valuation.

Markets lost ground in May, although in a reversal of recent months the S&P/ASX 300 Accumulation Index (benchmark) returned -2.8%, underperforming the MSCI World Index in AUD which returned -0.9%. It may have been a reflection of higher domestic inflation and more hawkish rhetoric from the Reserve Bank of Australia, which saw the several sectors substantially underperform their global peers. The Manager used May as an opportunity to significantly increase exposure to high quality global businesses that had been swept up in the broader months-long sell-off.

A special dividend is a payment made by a company to its shareholders that is separate from the usual recurring dividend cycle. It is usually a ‘once off’ payment made to reward loyal investors.

Markets lost ground in May, although in a reversal of recent months the S&P/ASX 300 Accumulation Index (benchmark) returned -2.8%, underperforming the MSCI World Index in AUD which returned -0.9%. It may have been a reflection of higher domestic inflation and more hawkish rhetoric from the Reserve Bank of Australia, which saw the several sectors substantially underperform their global peers. The Manager used May as an opportunity to significantly increase exposure to high quality global businesses that had been swept up in the broader months-long sell-off.

Sequencing risk refers to the order and timing of investment returns. It is especially relevant when the timing of negative performance significantly affects the overall value of a portfolio.

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.

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.