Perpetual Pure Equity Alpha Fund

The Perpetual Pure Equity Alpha Fund is an absolute return portfolio of the best share opportunities we have identified (both long and short), and is managed by one of Australia's most experienced equity teams.

The Fund aims to generate positive returns with minimal volatility over equity market cycles. By combining both long (to hold) and short (to sell) positions the Fund is able to take advantage of rising and falling markets and provide some protection against falling markets.

We employ our tried and proven bottom-up stock selection process for both long and short positions. Through fundamental company research, we aim to identify opportunities to buy quality, undervalued companies. On the short side of the portfolio we opportunistically target stocks that we expect will underperform. We rarely short the index, we short companies.

> Important information and continuous disclosure

Absolute return portfolios

Absolute return long-short equity funds offer a differentiated solution to investors. Find out more in the brochure below.

Latest Fund Profile

Get the latest performance information and portfolio commentary for the Perpetual Pure Equity Alpha Fund.

Features and Benefits

  • More opportunities to manage downside risk

  • Absolute return focus

  • Flexibility and conviction

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    Specialist shorting expertise

The Fund is able to take advantage of rising and falling markets, and provides useful protection for investors against falling markets.

Anthony Aboud, Portfolio Manager

WHAT ARE THE RISKS?

All investments carry risk. While it is not possible to identify every risk relevant to your investment, we have provided details of the risks that may affect your investment in the relevant product disclosure statement (PDS) or offer document.

You can find PDSs and other documents in our resources section. The relevant PDS, offer documents and forms can also be found in the sections below:


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Perpetual Pure Equity Alpha Fund

Pricing & Performance

Performance as at 31/10/2018

Returns as at 31/10/2018

  Growth % Distribution % Total %
1 month 1.60 -- 1.60
3 month 0.94 -- 0.94
6 month -4.20 5.59 1.40
1 year 1.74 6.33 8.08
3 year 0.23 4.88 5.11
5 year 0.90 5.51 6.41
10 year -- -- --

Unit Prices as at 15/11/2018

Entry
1.104
Exit
1.100
View price history

Distributions

Frequency Half Yearly
Cents per Unit 6.370
Reinvestment Price 1.091
View distributions history

Fund Commencement Date

March 2012

Details & Fees

About this fund

  • Fund Manager

    Perpetual Investment Management Limited

  • Asset Class

    Australian shares

  • Suggested Length

    5 years or longer

Investment Objective

Aims to generate positive returns over a market cycle irrespective of market conditions by investing in both long and short positions of predominantly Australian shares. Whilst the Fund has no formal benchmark, for reporting purposes the Fund is measured against the RBA cash rate.

Investment Approach

Utilising Perpetual's proven investment process, the Fund will adopt the same disciplined investment approach as is used across Perpetual's equity funds. Our conservative bottom-up approach to stock picking is core to the investment approach for this Fund, allowing the portfolio manager to identify and select stocks for both the long and short positions of the Fund. The investment process is based on comprehensive internal company research using four filters:
- sound management
- conservative debt levels
- quality of business and
- recurring earnings.
The Fund's portfolio is then created within specific investment guidelines and a risk-controlled framework. The Fund will predominantly invest in Australian shares (both long and short), cash may be used defensively to preserve capital and it can invest opportunistically (both long and short) in global shares.
Derivatives may be used in managing the Fund.

Investment Details

Minimum Initial Investment $25,000
Minimum Additional Investment $2,000

Fees

Entry Nil
Exit Nil
Management Fee (p.a.) 1.28%. Refer to PDS for Management Costs. *
Performance Fee (p.a.) 20.50% of outperformance.*
Buy / Sell Spread 0.2% / 0.2%

Investment Guidelines

Cash 0 - 100%
Net Share Exposure -20 - 100%
Gross Share Exposure 0 - 200%
Net Global Share Exposure -10 - 20%

Distribution

Half Yearly
June 30, December 31

Perpetual Investment Management Limited ABN 18 000 866 535 AFSL 234426 and Perpetual Superannuation Limited ABN 84 008 416 831 AFSL 225246 are the issuers of the Funds. You should consider the relevant Fund product disclosure statement or other offer document before deciding whether to invest.

Returns have been calculated using exit prices after taking into account all ongoing fees, and assuming reinvestment of distributions. No allowance has been made for entry fees, exit fees or where applicable taxation. Future returns may bear no relationship to the historical information displayed. The returns shown represent past returns only and are not indicative of future returns of a Fund. Returns on a Fund can be particularly volatile in the short term and in some periods may be negative.

Awards and recognition

© 2014 Morningstar, Inc. All rights reserved. Neither Morningstar, nor its affiliates nor their content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. To the extent that any of this information constitutes advice, it is general advice and has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 and/or Morningstar Research Limited (subsidiaries of Morningstar, Inc.) without reference to your objectives, financial situation or needs. You should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement (in respect of Australian products) or Investment Statement (in respect of New Zealand products) before making any decision to invest. Neither Morningstar, nor Morningstar's subsidiaries, nor Morningstar's employees can provide you with personalised financial advice. To obtain advice tailored to your particular circumstances, please contact a professional financial adviser. Please refer to our Financial Services Guide (FSG) for more information www.morningstar.com.au/fsg.asp