PPI Series 1, 2 and 3
Series 1, 2 and 3 are now closed to new investors.
Information for existing investors
Impact of the recent market volatility
Those investment strategies that were partially invested in fund units, as at 1 July 2011, have been affected by the recent market volatility.
In line with the product’s capital protection strategy, each has seen a reduction in fund unit exposure (participation rate). The most current participation rates are available through the links above.
Apart from a change in current value, those investment strategies invested entirely in call options as at 1 July 2011 have not been impacted and will still return the protected amount at the protection end date.
Changes to the Challenger Wholesale Australian Share Fund
From 12 July 2010 the 'Challenger Wholesale Australian Share Fund' has changed to 'Alphinity Wholesale Australian Share Fund'. This follows changes at Challenger as announced on 5 July 2010, including a change in investment manager. For more detail about the changes please visit the Challenger website at www.challenger.com.au.
An updated PDS for the fund is available at http://www.challenger.com.au/funds/PDS/CASF_IDPS_PDS.pdf
The changes have no impact on your investment in Perpetual Protected Investment Series 3 other than those outlined by Challenger. You will see the new fund name appear on your statements as well as on-line information for your investment in Perpetual Protected Investments.
Your questions answered
Q. Why is my portfolio not moving in line with the market?
A. The value of your portfolio depends on the performance of the investment strategies you have selected. This performance is a combination of fund units and call options.
If your portfolio is mostly or completely invested in call options, it will move in accordance with the movements in the value of call options. You can learn more about how call options are valued for Series 1, Series 2 and Series 3 here.
You can check your portfolio's value via our our secure site.
Q. Why does the value of my call options go up and down?
A. The value of call options within your portfolio is based on the Bank Bill Swap Rate for the relevant maturity date (BBSW), which moves up and down each day. You can learn more about how call options are valued for Series 1, Series 2 and Series 3 here.
Q. What statements will I receive?
A. Each year you will receive the following statements for your portfolio:
- A quarterly periodic statement, showing details of your investment . This statement is also available online via our secure site.
- A loan statement at least annually, showing transactions on your loan account in the period covered
- An annual tax statement which provides information relevant for your tax return.
- A copy of each of these statements is also sent to your adviser.
- An Annual Financial Statement for each Series will also be made available in September each year on our website. If you have requested to receive a hard copy, it will be sent to you at that time.
Q. What happens if I choose to withdraw before the protection end date?
A. If you choose to withdraw before the protection end date, your portfolio will not have the benefit of capital protection.
The amount you can withdraw may also be different to your current portfolio value, meaning you may be required to find additional cash to pay out your loan. This is due to:
- changes in the value of fund units in your portfolio
- changes in market interest rates impacting the value of any call options in your portfolio
- deductions for administration fees and dynamic management fees or put option premium payable to the withdrawal date
- deductions for early repayment fees.
You can request a cash withdrawal of all or part of your portfolio value on a quarterly basis (as at 30 June, 30 September, 31 December and 31 March). The completed and signed withdrawal request must be received by us before 5pm on the first business day of the last month of the calendar quarter, e.g. 1 December for a 31 December withdrawal.
These publications have been prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535, AFSL 234426 with the assistance and consent of the relevant fund manager. It is general information only and is not intended to provide you with financial advice and does not take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted by PIML or the relevant fund manager for any loss or damage as a result of any reliance on this information. You should also consider the PDS for the relevant fund. No company in the Perpetual Group (Perpetual Group means Perpetual Limited ABN 86 000 431 827 and its subsidiaries) or the fund manager, guarantees the dynamic management strategy, the performance of any fund or the return of any investor’s capital. Total returns shown for the fund(s) have been calculated using exit prices net of all ongoing fees and assuming reinvestment of distributions. No allowance has been made for any entry or exit fees or taxation. Past performance is not indicative of future performance.