Interim results: Did Perpetual Investments outperform the market?

Perpetual Equity Investment Company Ltd (ASX: PIC) has outperformed its benchmark by 0.5% in the first half of the 2019 fiscal year.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One of Australia's largest fund managers has managed to beat the market over the second half of the 2018 calendar year, but only just.

Perpetual Equity Investment Company Ltd (ASX: PIC) posted its interim results this morning, announcing that its investment portfolio delivered a return of -6.5% over the period, outperforming the benchmark by 0.5%. A fully franked dividend of 3.1 cents per share was also announced, which represents a 3% increase on the previous corresponding period. The Perpetual share price is up 0.5% this morning.

The second half of 2018 was a tough period for Australian equities as global growth concerns and macro risks came to the forefront, sparking a sell-off.

"The Board recognises our shareholders value a sustainable dividend stream and is pleased to announce an increased interim dividend for the first half of the year. During a time of market volatility and overall market weakness, we have achieved this for our investors through prudent management of the Company," said Chairman Nancy Fox in a statement.

The company recorded an operating loss after tax of $16.2 million for the period as a result of unrealised losses attributed to unfavourable market conditions. Perpetual noted that market conditions have since seen an upturn in the second half of the fiscal year.

A value investor's market?

Perpetual Portfolio Manager, Vince Pezzullo said: "The ongoing market volatility has been challenging for the industry and created some uncertainty. We believe value investing will return to favour as market conditions continue to change."

"We continue to focus on strategically managing our portfolio and our disciplined investment approach to deliver sustainable income for our investors over the long run."

Motley Fool contributor Cale Kalinowski has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was an historic day for the ASX, with the market setting a new record.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

Bell Potter says this ASX 200 stock can rise 100%+

Let's see which stock the broker is tipping as a buy to clients.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Broker Notes

Macquarie tips 28% upside for this ASX All Ords tech stock

Let's see what the broker is saying about this growth stock.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Fletcher Building, Johns Lyng, Pilbara Minerals, and Zip shares are charging higher

These shares are having a strong session on hump day. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Austal, Beach Energy, Perseus, and Platinum shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A man looking at his laptop and thinking.
Broker Notes

Up 17% in 2025, how much more upside does Macquarie tip for Metcash shares?

Following Tuesday’s merger and earnings news, Macquarie changed its rating for Metcash shares.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Record Highs

Breaking: The ASX 200 just hit a new all-time high

Australian shares have exploded 16.8% higher in two months.

Read more »