Perpetual restricts access to small cap funds
14 Jun 2002
Perpetual Investments is to close both its wholesale smaller companies options - the Wholesale Smaller Companies (WSC) fund and the Pooled Superannuation Trust (PST) Smaller Companies Investment Option - to new and existing investors from 30 September 2002.
The retail versions of the fund (retail investment options) will remain open to new investment through the following options:
- Perpetual's Investor Choice Fund - Smaller Companies Asset Group
- Perpetual's Smaller Companies Fund
- Perpetual's Super and Rollover Plan - Smaller Companies Investment Option
- Perpetual's Pension Plan - Smaller Companies Investment Option
While existing investments in the WSC and PST funds will remain unaffected, from 30 September 2002, additional investments will not be accepted from current investors, and no new applications will be processed. Existing investors may continue to reinvest distributions.
Mr Gerard Doherty, Group Executive - Perpetual Investments said that by managing the growth of the Smaller Companies fund, Perpetual is placing itself to be in a better position to continue the recent strong investment performance and good returns to investors.
"It allows Perpetual to maintain its focus on delivering strong investment performance, and to protect the interests of current investors rather than seeking growth for growth's sake," he said
"The decision to close the Wholesale and PST Smaller Companies funds to additional money is in response to the significant increase in inflows through these investment options. We have decided to keep our retail investment options open, as flows in this area have remained relatively low. We will continue to assess the demand for these funds going forward.
"Perpetual is committed to its goal of continued investment performance and we believe this approach will be supported by our existing investors," Mr Doherty said.
Perpetual's Wholesale Smaller Companies Fund and PST Smaller Companies Investment option have experienced strong performance over the past 5 years. In the year to 30 May 2002, the Wholesale Smaller Companies Fund returned 35.2% outperforming the ASX S&P Small Ordinaries by 30%. The PST Smaller Companies Investment option has returned 32.2% for the same period.