Perpetual Equity Investment Company (PIC) has announced an operating profit after tax of $21.8 million for the six months to 31 December, down considerably from $55 million reported for the prior corresponding period.
In a statement on Wednesday, the investment company reported a strong profit reserve of $108.4 million and a fully franked interim dividend of 2.8 cents per share, equating to an annual dividend yield of 4.3 per cent.
“The company continues its upward trajectory, having delivered investment outperformance over the period, while also building its profit reserve and franking account,” chairman, Nancy Fox, said.
“For our shareholders, we are pleased to declare an interim dividend of 2.8 cents per share and are confident that the growth of the profit reserve will continue to strengthen the company’s ability to deliver a sustainable income stream.”
The PIC portfolio delivered a return of 5.4 per cent for the six months to 31 December 2021, and 23.4 per cent over the 12-month period.
Commenting on what he termed PIC’s “strong performance” during a challenging period, portfolio manager Vince Pezzullo said the current unprecedented environment has the potential to create many opportunities for investors.
“Markets have now transitioned to a period we believe most investors have never experienced before with inflation risks, looming prospects of yield curve movements, changes in global commerce and businesses being forced to pivot in their supply chains, current carbon footprint and future way of working," said Mr Pezzullo.
“We believe these factors create opportunities to generate positive investment performance against the benchmark and are confident in our ability to navigate these fast-evolving market conditions.”
