AFIC sells out of Perpetual and AMP
Australian Foundation Investment Company (AFIC) has reduced the number of its total holdings from 85 to 71 over the past 12 months, selling out of Perpetual and AMP, the company said in an announcement to the Australian Stock Exchange (ASX).
Both Perpetual and AMP were excluded from AFIC’s portfolio due to the concerns about their ‘sustainable competitive advantage’, a term which was defined as unique assets producing strong returns on capital.
At the same time, the firm said the capital would be reinvested in quality companies to help increase its exposure to preferred companies.
The examples of such companies included Macquarie which was said to have competitive advantage in growing green energy opportunities with strong return on equity (ROE) and balance sheet.
AFIC said it was looking for the companies with strong management teams and board, predictable earnings, financial strength as well as those businesses which were able to grow over the long-term and deliver growing dividends.
AUTHOR
Oksana Patron
Recommended for you
Selfwealth has provided an update on the status of its scheme implementation deed with Bell Financial Group as well as whether rival bidder Svava remains in the picture.
Magellan Financial Group has reported its first half FY25 results while appointing a new chief financial officer and promoting Sophia Rahmani to chief executive.
Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
Platform Netwealth has reported its financial results for the first half of FY25, reporting an 80 per cent increase in net flows, with its CEO viewing a “huge opportunity” from private assets.
