Perpetual | Perpetual Australian SHARE PLUS

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Our Philosophy

Perpetual believes that equity markets are semi-efficient, and that opportunities exist to add value through the selection of good quality, well-priced securities. Investment in quality companies, we believe, minimises the downside risk. These companies can be identified by thorough, fundamental in-house research.

We often perceive a company’s value to be different than the market value with our diligent, innovative research. This process of selecting securities trading at a discount to their inherent value helps achieve outperformance.

Our Process

The Funds expand on our investment process for Australian equities by taking short positions within the portfolio. This allow the Funds to:

fully utilise our research;
profit from poorly performing companies as well as good performers
exploit short side inefficiencies.

Short selling involves borrowing securities and selling them in the belief that the borrower will be able to buy the security back at a lower price later.

The investment process for the long exposure of the Australian SHARE PLUS is the same as our traditional approach for investing in Australian Shares. The Funds investments will be in line with Perpetual’s Australian Share Fund. Further information can be found in the Australian Shares section of the site.

The process for determining the Funds' short positions begins by calculating an implied alpha for all stocks in the S&P/ASX 300 Accumulation Index that Perpetual’s Australian Share Fund has not invested in. The initial implied alphas are used as a starting point for determining the Funds' short positions. They provide a forecast of how each stock is expected to perform relative to the benchmark. A recommended short position size is also produced for each stock and used to determine the short positions held by the portfolio.

Access Fund Overviews using the below links:

For further information please contact piresearch@perpetual.com.au