We have made some changes to Perpetual Wholesale Funds and issued Supplementary PDS No. 2 dated 31 May 2010.

SHARE-PLUS Long-Short Fund - changes to investment limits

Following a review of the Fund’s investment strategy and the appointment of Paul Skamvougeras as Portfolio Manager, we have made some changes to the way the Fund invests.

The Fund is managed using fundamental analysis for both long and short positions. The changes detailed below enable greater flexibility for the fund manager, while maintaining strong risk controls:

• Long positions will be broadly in line with the Perpetual Australian Share Fund (ASF) but greater fund manager discretion is allowed. 
• Short positions are allowed in stocks that are in the ASF, providing a much broader range of stocks to short. Individual short positions are limited to 2.5% of the Fund’s net asset value, and up to 3% due to market movement. 
• No sector limits are imposed on short selling. However stop-loss limits are applied on short positions that have moved more than 10% in value.

Wholesale Australian share funds – hedging change for international exposure

We no longer hedge the international exposure of the following Australian share funds:

• Concentrated Equity 
• Australian 
• SHARE-PLUS Long-Short 
• Geared Australian 
• Ethical SRI 
• Property Securities 
• Property Income

Since 2006 most of our Australian share funds have been able to invest up to 20% in companies listed on stock exchanges outside Australia. This international exposure has generally been hedged even though the exposure has historically been relatively low.

The change to hedging policy follows a review which showed that some unhedged international exposure can provide diversification benefits.

How can you obtain the Supplementary PDS?

We will issue a Perpetual Wholesale Funds Supplementary PDS as at 31 May which includes the above changes. You will be able to download a soft copy of the Perpetual Wholesale Funds PDS (which includes Supplementary PDS No. 1 dated 2 October 2009, and No. 2 dated 31 May 2010) from the Forms & Brochures page of the Perpetual website. You will also be able to order a hard copy from the same page.

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