How is Perpetual safeguarding your investments?

As a result of the global financial crisis and solvency problems faced by many overseas financial insitutions, as well as the major downturn in financial markets and weak economic outlook, many investors are concerned about the safety of their investments.

Perpetual’s enduring strength

Our 122 years in trustee and financial management have given us the experience and expertise to work through all market cycles. We’ve helped generations of Australians manage their wealth through recessions and market downturns, as well as in times of prosperity.

As a business, Perpetual is financially secure with low debt levels and a strong balance sheet. While the recent period has been challenging for all financial insitutions, Perpetual remains strong and profitable. We have carefully reduced our costs and sharpened our focus on our core business strengths to ensure we are ina strong position to deal with the difficult conditions. In fact, our conservative approach to business and management of our clients’ money means we are well positioned in an environment where trust and integrity have never been more important to investors.
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Our responsibilities in managing your money

Managed funds, superannuation, and other investment structures such as self managed super schemes are closely regulated by the relevant regulatory authorities – ASIC, APRA or the ATO.  Superannuation and managed fund assets are held completely separate to the assets of the Perpetual business. Perpetual does not have the right or ability to access clients’ investment money for its own use. We are simply managing your investments on your behalf.

In carrying out our duties as a responsible entity/trustee we must always:

• act honestly and in the best interests of investors 
• exercise care and diligence 
• treat all investors equally.
  

Sticking to our investment principles

Most types of investments have been negatively impacted by the financial crisis and major downturn on financial markets. As one of Australia’s most experienced investment managers we are intensely focused on managing your investments to achieve the best outcome during this difficult period.

We continue to focus on the objectives for each of our funds and stick to our investment principles – in stocks, focusing on quality businesses with sustainable earnings, strong balance sheets and resilience to tougher economic conditions; in fixed income, focusing on the real underlying risks for the return generated, liquidity and quality of security.

It is these quality principles that will continue to underpin our investment decisions through the difficult period ahead, as the market increasingly focuses on business and economic fundamentals.

We also believe that the current environment offers some very good long-term investments at some of the best valuations seen in many years.