Perpetual | Perpetual Australian Cash Funds

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Our Philosophy

Perpetual’s approach to managing credit enhanced cash strategies are to invest in high quality securities from corporations and securitisation vehicles. Our philosophy is to invest where our systemic investment process establishes

investments with a high degree of credit quality; and
when a security exhibits relative value

Risks are skewed to the downside with credit securities. Our philosophy is to recognise this risk profile and to mitigate any unbalanced downside risk by:

investing in high quality securities
properly valuing liquidity
building highly diversified portfolios
avoiding susceptibility to unexpected event risk
actively managing credit spreads

Our Process

Perpetual’s Credit Enhanced Cash Funds

Perpetual’s Credit Enhanced Cash Funds aim to add value over the UBS Australian Bank Bill Index through active management of cash and fixed interest securities.

The Funds invest in a diversified portfolio of securities. By adding corporate debt and asset-backed securities to bank bills, we seek to add value while retaining the low-risk characteristics of a cash investment. To enhance returns, we:

consider a range of securities that meet the required credit rating
select securities which offer attractive yields relative to their risk
anticipate changes in market-wide and security-specific credit margins

This Fund may also invest in assets directly or indirectly within other Perpetual managed funds that have similar investment objectives and authorised investments.

Perpetual’s Credit Enhanced Cash Fund has a credit rating of ‘Af’ from Standard & Poor’s.

Perpetual's Credit Enhanced Cash Fund (AA) has a credit rating of 'AAf' from Standard & Poor's.

Perpetual’s Credit Income Fund

Perpetual’s Credit Income Fund aims to add value over the UBS Australian Bank Bill Index through the active management of cash and fixed interest securities.

This Fund invests in a diversified portfolio of securities which has additional credit exposure and forgoes some liquidity in order to target a higher return profile than that of Perpetual’s Credit Enhanced Cash Fund and Perpetual’s Credit Enhanced Cash Fund (AA). We seek to enhance returns by:

considering a range of securities which meet the required credit rating.
selecting securities which offer attractive yields relative to their risk
selecting securities which offer attractive liquidity premiums relative to their risk
anticipating changes in market-wide and security-specific credit margins.

This Fund may also invest in assets directly or indirectly within other Perpetual managed Funds that have similar investment objectives and authorised investments.

Perpetual’s Credit Income Fund has a credit rating of ‘Af’ from Standard and Poor’s.

Perpetual’s Exact Market Cash Fund

Perpetual’s Exact Market Cash Fund aims to provide investors with regular income by investing in deposits, money market and fixed interest securities. This Fund delivers the benchmark return to investors through a swap agreement with Perpetual Australia Pty Ltd, a wholly- owned subsidiary of Perpetual Limited, whose principal activity is acting as the swap counterparty to the swap agreement.

While the swap agreement is in place, this Strategy will only deliver the benchmark return and will not be affected by the performance of its underlying investments, whether their return is below or above the applicable benchmark. Perpetual’s Exact Market Cash Fund invests in Perpetual’s Credit Enhanced Cash Fund (AA). The Fund may also invest in assets directly or indirectly within other Perpetual managed Funds that have similar investment objectives and authorised investments.

Perpetual's Exact Market Cash Fund has a credit rating of 'AAf' from Standard and Poor's

Access Fund Overviews using the below links:

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

Standard and Poors has assigned a ‘Af’ rating to Perpetual’s Credit Income Fund which indicates that the Fund’s assets exhibit strong protection against losses from credit default. In order to maintain the ‘Af’ rating, the Fund must comply with certain Standard & Poor’s criteria. The ‘Af’ rating criteria is available from Perpetual.
Standard and Poors has assigned a ‘Af’ rating to Perpetual’s Credit Enhanced Cash Fund which indicates that the Fund’s assets exhibit strong protection against losses from credit default. In order to maintain the ‘Af’ rating, the Fund must comply with certain Standard & Poor’s criteria. The ‘Af’ rating criteria is available from Perpetual.
Standard and Poors has assigned a ‘AAf’ rating to Perpetual’s Credit Enhanced Cash Fund (AA) which indicates that the Fund’s assets exhibit strong protection against losses from credit default. In order to maintain the ‘Af’ rating, the Fund must comply with certain Standard & Poor’s criteria. The ‘Af’ rating criteria is available from Perpetual.

A Standard & Poor’s fund rating is not a recommendation to make, hold or seek redemption of an investment in a fund inasmuch as it does not comment as to market price or suitability for a particular investor. The rating is based on current information furnished to Standard & Poor’s by Perpetual or obtained by Standard & Poor’s from other sources it considers reliable. Standard & Poor’s does not perform an audit in connection with any rating and may, on occasion, rely on unaudited financial information. The rating may be changed, suspended or withdrawn as a result of changes in, or unavailability of, such information , or based on other circumstances.