The Perpetual Diversified Income Fund is an active, diversified portfolio of high quality, floating rate debt investments. The Fund is designed for investors seeking predictable outcomes – including above cash rate returns, consistent income and capital stability.
When investing in debt, avoiding loss or default is critical. Perpetual aims to invest in stable, income generating assets that have a low likelihood of default. Perpetual’s analysts screen out risks by applying quality filters to companies and selecting those with strong management, stable balance sheets, predictable earnings, industry leadership and low susceptibility to regulatory or event risk.
We invest in floating rate assets because we believe that capital preservation is important. When interest rates rise, floating rate assets may better protect investors’ capital and allow for higher income generation. Floating rate investments are a natural complement to traditional fixed rate securities, such as government bonds and term deposits.
QUALITY FLOATING RATE INVESTMENTS CAN HELP TO PROTECT PORTFOLIOS FROM INFLATION
While fixed rate investments are potentially vulnerable to capital losses when interest rates rise, floating rate investments tend to benefit.
Domestic focus, globally aware
The Fund invests predominantly in investment-grade assets. As a result, our investments typically remain tradeable, even during periods of extreme market stress, providing liquidity and regular distributions to investors in the Fund.
A highly active and diversified portfolio management approach
The Fund holds 150 to 200 floating rate assets across a broad range of sectors and maturities in the Australian debt market. Diversification is important in managing risks and delivering steady returns.
Risk aware management style
We will only take on risk when we expect it will be rewarded and we actively screen out sources of risk that could lead to a loss. Risk management drives every decision we make.
DIVERSIFIED INCOME FUND - INVESTMENT APPROACH FLYER
Perpetual’s Diversified Income Fund has consistently delivered above cash-rate returns to investors, and our focus on quality has ensured these have been delivered with lower levels of risk than many other fixed income alternatives.