We're pleased to see continued recognition of quality investment approaches in the Australian Financial Review's analysis of top-performing global equities strategies during the challenging 2023 financial year.
The article demonstrates how the best performing funds navigated the dramatic shift from value to growth investing throughout 2023. The global equities market experienced extraordinary volatility, with the Nasdaq delivering its strongest start in four decades while the Australian market's limited technology exposure contributed to relative underperformance compared to global indices.
Of particular interest to our investment management approach is Thomas Rice's reflection on adapting investment strategies during turbulent periods. Rice, a portfolio manager for the Perpetual Global Innovation Share Fund, noted: "I've come to the conclusion that if you are looking for high-growth stocks, you do need to have a view of the short term – because even if you're correct in the long term, you can get obliterated."
This insight resonates with our understanding of market dynamics, where timing and risk management prove crucial during volatile periods. The artificial intelligence rally and focus on quality companies with strong fundamentals reinforces the importance of rigorous equity research and disciplined portfolio management in the global equities space, particularly as investors navigate the ongoing challenges of higher interest rates and economic uncertainty.
To read the article, click the link below.