Perpetual WealthFocus Investment Funds
Perpetual Geared Australian Fund
Fund Manager: Perpetual Investment Management Limited
Commencement Date: October 2003
PDS - Part 1
PDS - Part 2
Suggested Length of Investment
7 years or longer
Investment Objective
Aims to enhance long-term capital growth through borrowing (gearing) to invest in quality
industrial and resource shares and other securities.
Investment Details
| Min. Initial Investment | $2,000 |
| With Savings Plan | |
| Min. Initial Investment | $1,000 |
| Monthly Minimum | Nil |
| Min. Additional Investment | $1,000 |
Distribution
| Frequency | Half Yearly |
|---|---|
| Dates | 30 June & 31 December |
Returns as at 31/07/2010
| Total (%) | Distribution (%) | Growth (%) | |
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| 1 month |
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| 3 month |
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| 6 month |
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| 1 year p.a. |
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| 3 year p.a. |
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| 5 year p.a. |
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| 10 year p.a. |
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Returns have been calculated using exit prices after taking into account all ongoing fees, and assuming reinvestment of distributions. No allowance has been made for entry fees, exit fees or where applicable taxation. Future returns may bear no relationship to the historical information displayed. The returns shown represent past returns only and are not indicative of future returns of a Fund. Returns on a Fund can be particularly volatile in the short term and in some periods may be negative.
Investment Guidelines
| Australian shares | 90 - 100% |
|---|---|
| Cash | 0 - 10% |
| Gearing level | 0 - 60% |
The Fund's investment universe allows it to invest, directly or indirectly, in stocks listed or to be listed on sharemarket exchanges outside Australia. Exposure to stocks listed outside Australia is limited to 20% and is generally hedged to the Australian dollar to the extent reasonably practicable.
The gearing level is the Fund's borrowings divided by the total gross value of assets. It will depend on the present levels and future expectation of the underlying fund's net income (income after fees and expenses and excluding franking credits) and the cost on borrowings.
Fees
| Entry Fee | up to 4.0% |
| Exit Fee | Nil |
| Management Cost (p.a.) | 1.95%(g)/3.074%(n) |
| Buy/Sell spread | 0.75% / Nil |
If the average gearing level is 50%, the ongoing fee will be 3.12% of net asset value. If the average gearing level over the year is higher than 50%, the ongoing fee will be higher than 3.12%.
Investment Approach
Perpetual researches companies of all sizes using consistent share selection criteria. Perpetual's priority is to select companies that represent the best investment quality and are appropriately priced. In determining investment quality, investments are carefully selected on the basis of four key investment criteria:
- conservative debt levels
- sound management
- quality business and
- in the case of industrial shares,recurring earnings.
Perpetual aims to ensure that the gearing level is maximised, subject to the cost of borrowing
being adequately covered by net income. In addition, the gearing level must be kept within strict pre-determined limits.
Derivatives may be used in managing the fund, including for gearing purposes.
Derivatives may be used to:
adjust currency exposure (where appropriate)
hedge selected shares or securities against adverse movements in market prices
gain exposure to relevant indices
gain short-term exposure to the market
build positions in selected companies or issuers of securities as a short-term strategy to be reversed as the physical positions are
built up
create a short exposure to a stock for underlying funds authorised to take net negative positions.
