Diversification is no substitute for diligence.
Putting your eggs in different baskets only works by ensuring the quality of each basket.
Our investment team makes active investment decisions based on our intensive analysis of an investment’s intrinsic quality, value and risk. In stocks, we focus on quality businesses with strong balance sheets, effective management, sustainable earnings and resilience through the economic cycle. In fixed income we focus on providing regular income, liquidity and capital stability.
Our analysts don’t just conduct detailed analysis of financial reports. They also meet company management face to face, and talk to their suppliers, customers and competitors. And they consult with specialist external analysts.
Similarly, our fixed income team never just buys securities ‘off the shelf’ based just on their credit rating. In short, they focus on the capital and liquidity risks to ensure the returns being promised adequately compensate the risks.
Find out more about our investment philosophy
Perpetual staff regulations in the mid 1950s state: 'Economy must be exercised in the use of pens, nibs, rubbers, paper clips, etc. and are not to be thrown in the waste baskets when still in good order'.
Waste not want not – as applicable to the investment process as it is the stationery cupboard.
