INVESTING SERVICES WITH PERPETUAL PRIVATE

You might want income, or growth or capital preservation. You might be investing for today, for tomorrow - or for someone else’s tomorrow. Your goals are unique and will change as you move through life’s different stages. That’s why it’s important to have a tailored investment strategy – one that can adapt to life’s ups and downs.

The advisers and award-winning* investment team at Perpetual Private will work with you to define an investment strategy that is right for you, and then build a portfolio of carefully selected investments that work together to achieve your goals. These could include direct equities, managed funds (including ethical options), fixed interest, real estate, alternative assets and exclusive investments not normally available to individuals.

No matter how your money is invested, you can have peace of mind that your portfolio will be underpinned by the Perpetual Private Investment Philosophy.

Our Investment Philosophy

Our aim is to protect and grow your wealth by carefully selecting suitable investments that reflect the level of risk you’re comfortable with, as well as your investment objectives. To achieve this, we diversify risk across asset classes, within asset classes, across countries and fund managers. We take a long-term approach to investing because we believe quality investments yield benefits in the long run. Our advisers and investment specialists have a high duty of care in developing portfolios and ensuring Perpetual Private’s stringent quality investment criteria are met.

YOUR INVESTMENT GOALS

No matter what stage of life you’re at, our experienced team can guide you through your investment decisions. Here are some of the ways we help our clients.

  • Getting ready for retirement

  • Growing your business

  • Creating a legacy

  • Managing a not-for-profit

  • Native title

  • Sustainable and ethical investing

You’ve worked hard for many years, and now you’re ready to take a step back. But is now the right time to retire?

Whether you’re simply changing your focus or stopping work completely, here are some questions to consider first:

•    How will recent market volatility affect my retirement?
•    How can I use my SMSF to transition to retirement?
•    What if I live to 100? How much will I need?
•    What’s the best way to maximise my income, while protecting my assets?
•    Is it better to rent out, or sell an investment property?
•    How can I leave a legacy for my children and grandchildren?

At Perpetual Private we’ll answer all of your investment questions. With a complete financial picture, we’ll help you build a portfolio of investments that will let you enjoy the years ahead. 

It’s never too early – or too late – to start your retirement plan.



As an entrepreneur and business owner, you’ve worked hard to be successful. It’s only natural to want the maximum reward for your efforts.

Are you confident you’re making the right investment decisions to protect and grow your business? Here are some questions you can ask yourself.

•    Are my investments sufficiently diverse in uncertain times?
•    Can I pay less tax legally?
•    How can I invest in my SMSF and grow my business?
•    What’s the best way to raise capital?
•    Does my current plan minimise my stress?

Perpetual Private and Fordham Business Advisors, a specialist part of Perpetual can help you untangle your personal and business investments. We’ll help you structure debt, manage cash flow and create a portfolio for long-term wealth. Our team will assist you when you’re ready to sell or pass on your business, to get the reward you deserve.




You may want to provide ongoing financial security for your loved ones after you’re gone or support a charitable cause you’re passionate about. You may be the beneficiary of a significant payment, such as compensation, that needs to last years or decades.

Setting up a trust can give you peace of mind that the assets you have today will endure and create a lasting legacy. When it comes to appointing a trustee, there’s a lot to consider. The trustee is often responsible for how the trust’s assets are invested, how much is distributed to beneficiaries and when – and even who are the beneficiaries. 

With so much at stake, it’s important to choose the right trustee. Here are some questions to ask before you appoint a trustee:

•    Can the trustee make the right financial decisions and investments for the beneficiaries?
•    The role of a trustee may last decades. Can the trustee make this commitment?
•    Are you confident the relationship between the trustee and the beneficiary will remain the same in the years ahead?

Perpetual has been a trustee organisation for over 130 years. We can help you set up a trust to provide for your loved ones or a charitable organisation you care about.

If you have been appointed a trustee, perhaps for a family member’s trust and wish to step back from these responsibilities, we can help you find a replacement in line with the procedures set out in the trust deed. We can also be a co-trustee to ease the compliance and investment burden of managing a trust.


Managing the finances of a charity or a not-for-profit is about creating maximum impact – and long-term sustainability for your organisation.

When deciding where to invest, here are some questions you might consider:

•   How much cash should I hold?
•   When is the right time to invest in a volatile market?
•   Do my investments reflect the values of my organisation?
•   Which investments will stand up to the scrutiny of existing and potential donors?
•   How can I improve the efficiency of every dollar spent?

In today’s ultra-competitive world for NFPs, knowing the right financial path forward can be tricky. At Perpetual Private we can advise on sustainable investment strategies to maximise long-term wealth. With the right partner you can be confident your organisation will make the world a better place today. And tomorrow.



Native Title payments provide valuable services for First Nations communities. While the royalties are for land use today, the money needs to benefit communities for generations to come.

That’s why it’s so important to find a partner you trust – one who understands your community and its unique needs. When deciding who to choose to manage your Native Title trust, here are some things to consider:

•   Are the investments in your trust sustainable and ethical?
•   Do you have a genuine endowment model which will provide an income while protecting long-term wealth?

At Perpetual Private, we’ve proudly managed and invested on behalf of First Nations people for over 20 years.

For many people the achievement of financial goals needs to align to their personal values. Many are looking to balance investment returns with social good.

If this sounds like you, you’re in good company. Perpetual recently asked 3,000 Australians what they care about most in life. Our 'What do you care about?' research project told us that Australians care a lot about the environment. People were particularly concerned about air pollution, water quality and global warming.

When considering your investment choices, here are some things to be mindful of:

•    Where do your investments derive their revenue from?
•    What is the track record for companies you invest in, in terms of environment, human and animal rights?
•    How important is it to be ‘proud’ of the companies you invest in?

At Perpetual Private, we can structure an investment portfolio that doesn’t compromise your values and still achieves attractive long-term returns. We do this by screening out companies who derive more than 5% of their revenue from areas such as tobacco, gambling, weapons and coal seam gas. We also assess companies in areas like the environment and animal rights.

Environmental, Social and Governance (ESG) investing is an area we’re deeply committed to. In July 2020 we welcomed into the Perpetual business Trillium Asset Management (Trillium) – a leading ESG investment firm in the United States. Established in 1982, Trillium has one of the longest track records globally within responsible investing, including fossil fuel free strategies that have been operating for over 20 years.


Investment eBook Perpetual

The wealthy investors’ guide to retirement investing

Written for individuals with more than one million in investible assets, this free ebook contains eight thought-provoking chapters on how you can generate a retirement income in a low-rate world. It provides practical tips and advice on alternative investment options, tax effective investments and investing responsibly without compromising on returns. It’s the essential guide for those seeking to grow their wealth in retirement.

Choosing the right investments

Your appetite for risk will probably be very different to the next person. While risk is a personal perception of a situation or investment, there are generally three factors which affect your overall risk appetite:

  • Your financial capacity to take risk
  • Your desire to take risk
  • Your need to take risk

When building a portfolio of investments, we make understanding your tolerance for risk a top priority and managing your risk at the forefront of all our decisions. Investment markets tend to move in cycles, and different asset classes can perform well at different times. That’s why, as the saying goes, you shouldn’t place all your eggs in one basket.

To properly manage your risk, we diversify:

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As a concept, diversification sounds relatively simple and straight forward. But choosing which markets at the right time, and in the best way, can be challenging.

Diversification has long-term benefits for your portfolio. As the following graph shows, through asset class diversification, including the addition of Alternatives, you can help protect on the downside, reduce your ‘severe pain points’ and smooth out your returns over time.

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Investing with PP graph

Diversification also helps mitigate sequencing risk – that is, the risk of portfolio losses in years around retirement. Sequencing risk can have a significant negative impact on your long-term retirement savings.

We offer a wide range of investment options (some of which are not usually available to individual investors) to suit the diverse needs of our clients.

  • Australian and international equities
  • Managed funds
  • ESG / sustainable investing
  • Fixed interest
  • Property
  • Alternatives (e.g. opportunistic, private equity, absolute return, infrastructure)

Markets are notoriously difficult to predict in the short term and attempting to time market entry and exit can lead to underperformance over the long term. That’s why at Perpetual Private we have a buy and hold view to investments for our clients.


In today’s low interest rate environment, many investors are seeking a secure income through high yield investments – that is, investments that pay more in dividends.

Income yield is the annualised income return as a proportion of the amount placed in an investment. For example, a $5 dividend paid on a share valued at $100 has a 5% income yield. The focus on annual income yield to deliver a higher dollar amount of income, starts to break down over longer time periods.

Why is this the case? If we take a look at Chart 2 below, although the dollar value of Share 2 is lower in year 1 ($4.50 vs $5,00), over the long term, the dollar value of income surpasses that of Share 1. In fact, in 20 years’ time, Share 2 would provide almost double the dollar value of income when compared to Share 1, all the while displaying a comparatively lower dividend yield over the 20-year period. The reason for this is that the lower dividend yield of Share 2 is being earned off a faster growing capital base.

 

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Click here to see the enlarged image 

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That’s why it’s important to consider your investments over the long term. For those seeking income, companies with strong and growing dividends and potential for sustainable earnings growth may be better investments than those with the highest dividend payouts today.


We consistently monitor portfolio performance and transparently publish how our funds perform on the Perpetual Pricing and Performance.

Our award-winning team also thoroughly research future trends and will communicate with you about investment opportunities as they come up in the future. 



Our Investment Process


  • understand your needs

    We take the time to understand you. We look at where you are now, what you want for yourself and your family, your attitudes to investing, risk and much more.

    At this stage, we also ask:

    • How involved do you want to be? Our Advisory or Discretionary Managed Accounts may be right for you.*
    • What do you want to invest in? We have multiple implementation options available including direct investment, single manager funds, multi-manager funds and multi-asset class funds.
    • Do you have any ethical considerations? We have ethical investment and ESG funds.

     

    * Our Advisory Accounts let us make limited investment decisions without consulting you, in line with your stated investment goals. Our Managed Discretionary Accounts let us manage your investments based on investment goals and risk tolerance, without needing to consult you about each transaction.

  • Portfolio construction

    We build your portfolio of investments through a disciplined, personalised process. Your unique investment objectives will determine the right investment strategy, selected from a carefully considered mix of fixed interest, equities and alternative investments.

    When constructing a portfolio, our investment team look at the characteristics of the investment landscape and seek to blend asset classes, investments styles and individual risk factors to find an appropriate balance between risk and return for your portfolio.

    1. Strategic asset allocation – diversification across asset classes over the long term.
    2. Manager selection – for managed funds investments we choose a fund manager whose investment objectives best match yours.
    3. Security selection – selecting individual securities that we consider will best meet your risk vs return objectives.

    How we choose your fund managers

    We only invest in fund managers who have:

    • a sound organisational structure with high standards of risk management and corporate governance
    • skilled investment teams that are appropriately resourced
    • a coherent, well-executed investment process that is sustainable.

    By investing in the Implemented Portfolios, you enjoy the advantages of an expert investment team actively managing the portfolios, allowing for investment decision to be implemented quickly and efficiently, as well as many other benefits. 

    Australian share portfolio
    Objective: Provide long-term capital growth and income through a diversified portfolio of Australian share funds. 

    International share portfolio
    Objective: Provide long-term capital growth through a diversified portfolio of international share funds.

    Fixed income portfolio
    Objective: Provide income and capital stability through a diversified portfolio of fixed income and floating rate investments.

    Real estate portfolio
    Objective: Provide income and long-term capital growth through a diversified portfolio of Australian and international real estate investment trusts and unlisted property trusts.
     

    Perpetual also has a Perpetual Income Opportunities Fund and Perpetual Growth Opportunities Fund.

    Watch our Senior Research Analyst, David Blunt, discuss the philosophy behind our portfolios.

The Perpetual Difference

WHY US

We have safeguarded investments for our clients since 1886. Our experience as a trustee and wealth manager means we understand the ongoing needs and challenges of our investors. We regularly engage our clients to seek feedback such as through state-based Client Council meetings and Net Promoter Score surveys.

We have a dedicated in-house independent investment team of 18 employees focused across all asset classes. This is one of the largest investment teams of a Private Wealth Management company in Australia. 

The bulk of wealth managed by Perpetual Private is in Managed Funds which includes our single manager, multi-manager and multi-asset class funds, including the Growth and Income Opportunities Funds. Our multi-manager and multi-asset class funds have a greater than 20-year performance track record with some options in operation for 30 years.

Our Opportunity Funds

Perpetual Private has two Opportunity Funds:

These Funds’ investments usually fall outside of the more traditional asset classes of shares, bonds, cash or property. The Funds’ assets usually have lower liquidity and exhibit lower correlation to traditional asset classes.

Perpetual Income Opportunities Fund aims to provide consistent income through investment in a diversified portfolio of specialist credit funds, absolute return funds and other investments consistent with the Fund’s investment approach. Find out more.

Perpetual Growth Opportunities Fund aims to provide long term capital growth through investments in a diversified portfolio of private equity funds, infrastructure funds, opportunistic property funds, absolute return funds and other investments consistent with the Fund’s investment approach. Find out more.

Together the Funds provide a convenient means of accessing investments that are generally not as readily accessible as investments in traditional asset classes.



AWARD WINNING TEAM

The Perpetual Income Opportunities Fund and Perpetual Growth Opportunities Fund celebrated 10 years in market in 2019.

Perpetual was recognised as Best Alternative Investment Manager of the Year and the Perpetual Income Opportunities Fund has won Best Multi Strategy Fund two years running at the Hedge Funds Rock Australian Alternative Investments Awards held in Sydney (2018-2019).

At the Hedge Funds Rock Australian Alternative Investments Awards we were also nominated for the Best Market Neutral Fund.

We were also a finalist in the Australian Equities category at the 2019 IMAP Managed Account Awards.

EARNING YOUR TRUST

Perpetual is an ASX-listed, diversified financial services company which has been serving Australians since 1886 when it was established as a trustee company by a group of businessmen including Sir Edmund Barton, later to be Australia’s first Prime Minister. That trustee heritage – and the culture it created around putting clients first – is what makes Perpetual unique.

We have been earning the trust of our clients for more than 130 years and pride ourselves on our long-standing client relationships – some of which span five generations.

Trust is earned, every day.

Watch as Perpetual's CEO Rob Adams talks about how trust has to be earned every day and introduces a telling true-to-life example.

OUR ADVISERS – IN THEIR OWN WORDS

Perpetual Private

Every day is different at Perpetual Private. As active managers, we’re always on the lookout for new opportunities for our clients and we’re always going over new information - finding hidden gems is very satisfying! Our clients value how responsive we are to their needs and helping them achieve their financial objectives is very rewarding. - Stella McMullen Senior Research Analyst – Direct Equities – Perpetual Private

Perpetual Private

Perpetual Private was founded to look after other people’s wealth – as a fiduciary we put the needs of our clients at the front and centre of everything we do. For my team, it means delivering excellent investment outcomes for clients – and we devote significant effort towards finding the best securities and investment management capability from around the world for inclusion across our clients’ portfolios. - Kyle Lidbury Head of Investment Research - Perpetual Private

Meet the team

TAKE YOUR FIRST STEP - CONTACT US ON 1800 631 381

Or please submit the form below and a specialist adviser will contact you. 97%* of Perpetual Private clients are happy with the quality of their financial advice. *Perpetual Net Promoter Score Survey (research conducted by Woolcott Research).

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Catalyst Newsletter

Expert insights on wealth management strategies and market trends

Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo) ABN 42 000 001 007, AFSL 236643. This webpage contains general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial or other adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo) ABN 42 000 001 007, AFSL 236643. This information was prepared by PTCo. To view the Perpetual Group's Financial Services Guide, please click here. The information is believed to be accurate at the time of compilation and is provided in good faith. This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practice or law that is often complex and can change. This article may contain information contributed by third parties. PTCo do not warrant the accuracy or completeness of any information contributed by a third party. Any views expressed in this article are opinions of the author at the time of writing and do not constitute a recommendation to act. The PDS for the Perpetual Growth Opportunities Fund and the Perpetual Income Opportunities Fund, issued by PIML should be considered before deciding whether to acquire of hold units in the funds. The PDS can be obtained by calling 1800 022 033 or visiting our website www.perpetual.com.au. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. Past performance is not indicative of future performance.


TAKE YOUR FIRST STEP