Fri, 09 Mar 2012
As many clients know from painful experience, share funds can suffer losses quickly. That was certainly the case during the GFC when sharemarkets around the world sank. Historically, the best way for investors to stay afloat as sharemarkets fell was to have kept some of their money in bond funds or cash. However, long-short funds offer another alternative. These funds can offer share fund-like returns with lower volatility, and can behave differently to both shares and bonds.
Long-short funds use a strategy called short-selling, in addition to simply taking ‘long’ positions by buying shares in anticipation of rising prices. ‘Shorting’ is a way to make money when share prices fall. To do this, the fund manager borrows stock and sells it with the intent of buying it back later at a lower price if it falls – gaining from the difference.
By design, long-short funds can behave differently from other investments in a portfolio. Shorting enables these funds to make gains even when individual stocks or the overall market slumps, or at least decline less than other share funds. Meanwhile, long-short funds also take traditional ‘long’ positions, which allow them to participate in market rallies. The combination of both ‘long’ and ‘short’ positions can have a stabilising effect on returns, making the funds less volatile than the overall sharemarket.
Perhaps most importantly, the returns of long-short funds don't correlate with long-only shares or bonds. This enables them to reduce overall portfolio risk.
Perpetual uses long-short strategies in the Perpetual SHARE-PLUS Long-Short Fund. For more information please read the product disclosure statement.
Mon, 25 Feb 2013
Perpetual Investments has been named Fund Manager of the Year by Morningstar in its Morningstar Awards 2013. Find out more
Fri, 09 Mar 2012
In March 2012 Perpetual was awarded 'Employer of Choice for Women' status for 2012 through the Equal Opportunity for Women in the Workplace Agency (EOWA). Find out more
Wed, 23 Jan 2013
Transfer of traditional trustee services to Perpetual Trustee Company Limited Find out more
Wed, 12 Dec 2012
Perpetual Investments has been awarded a $165 million Australian equities mandate. Find out more
Wed, 17 Oct 2012
Perpetual has distributed over $1.6 million in funding to Australian biomedical researchers on behalf of the Ramaciotti Foundations.
Professor Katherine North AM, the researcher responsible for discovering the ‘gene for speed’ has been awarded the prestigious Ramaciotti Medal for Excellence in Biomedical Research and a $50,000 grant. Find out more
Mon, 23 Jul 2012
Directors of charitable not-for-profit (NFP) organisations face challenges that are unique to their sector but no less pressing than those of the commercial sector, according to the participants of a groundbreaking scholarship program. Find out more
Thu, 12 Jul 2012
Perpetual has distributed $12.5 million in funding for NFPs during its annual funding round, up from $9.1 million in 2011. Find out more
Mon, 25 Jun 2012
Perpetual releases Transformation 2015 strategy to achieve vision of becoming Australia’s largest independent wealth manager of choice. Find out more
Wed, 09 May 2012
An analysis of the Federal Government's 2012/13 Budget, delivered on 8 May 2012. Find out more
Mon, 23 Apr 2012
Most of us know that getting advice from a financial adviser can help us achieve our financial goals, whatever they may be. However, many of us can only determine the quality of that advice after many years, following the success or failure of the recommended strategies. This is because we generally only see one financial adviser, so we don’t have the opportunity to compare services. Find out more
Wed, 11 Apr 2012
The limitations of European solutions are concerning investor. The market’s four month rally has faded and Europe’s troubles have spread into the bigger economies, Matt Sherwood, head of investment markets research, Perpetual Investments, provides this market update. Find out more
Tue, 03 Apr 2012
Volatility, a term often used to describe fluctuations in returns, is also a way of measuring risk. Different investments carry different levels of risk and return. Find out more
Thu, 23 Feb 2012
ASX announcement Find out more
Fri, 09 Mar 2012
As many clients know from painful experience, share funds can suffer losses quickly. That was certainly the case during the GFC when sharemarkets around the world sank. Find out more
Mon, 06 Feb 2012
The Perpetual Limited Board has appointed Mr Geoff Lloyd as Chief Executive Officer and Managing Director, effective 06 February 2012. Find out more
Tue, 01 Mar 2011
Estate planning is an essential part of managing your finances, especially if you have a family, a business or a complex financial situation. Find out more
Mon, 15 Aug 2011
Perpetual Investments has partnered with Wellington Management Company, LLP (Wellington Management) to manage the Perpetual International Share funds, giving clients access to a world class manufacturer of international equities products. Find out more
Fri, 02 Dec 2011
With Australia becoming increasingly litigious, individuals and business are more exposed than ever. Find out more
Fri, 27 Jan 2012
With Australia's ageing population increasing, many people are faced with the prospect of taking care of their elderly parents. Peter Whitehead, Senior Manager – Fiduciary at Perpetual Private, talks about the challenges of managing a relative's financial affairs. Find out more