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.
More opportunities to manage downside risk
The Fund’s ability to invest in Perpetual’s highest conviction long and short ideas means that portfolio performance can be better cushioned during periods of market weakness.
Absolute return focus
By taking long and short positions, the Fund is better able to generate positive returns in both rising and falling markets.
Flexibility and conviction
Our bottom-up company research generates the insights that drive our high conviction stock selection. The Fund is not limited by index weightings or market capitalisation.
Specialist shorting expertise
Perpetual’s equity team has a highly experienced shorting investment capability. This skill and experience has helped the Fund identify shorting opportunities that have added to returns.
The Fund is able to take advantage of rising and falling markets, and provides useful protection for investors against falling markets.
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:
> Investment | > Superannuation | > Retirement
Performance as at 30/06/2019
Returns as at 30/06/2019
|Growth %||Distribution %||Total %|
About this fund
Perpetual Investment Management Limited
5 years or longer
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.
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.
|Minimum Initial Investment||$25,000|
|Minimum Additional Investment||$2,000|
|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%|
|Cash||0 - 100%|
|Net Share Exposure||-20 - 100%|
|Gross Share Exposure||0 - 200%|
|Net Global Share Exposure||-10 - 20%|
|June 30, December 31|
Years of experience: 23
Years at Perpetual: 15 (split in 2 periods)
Paul is the Head of Equities and the Portfolio Manager for the Concentrated Equity and Pure Equity Alpha strategies.
Paul rejoined Perpetual Investments in February 2010 as a Portfolio Manager, having previously spent seven years with Perpetual. He began his career with Perpetual in 1994 in a back office role, moving into a dealing role after three years, working his way up to the Head Dealer role.
Between stints at Perpetual, Paul spent seven years working at CPH/Ellerston Capital, where he had portfolio management responsibilities for an Australian long/short strategy for the first four years and a global long/short strategy for the last three years. Paul also recruited and managed two analysts within his team.
Paul gained international experience, spending 18 months in London, as well as expertise in investing and trading various asset classes ranging from equities, commodities, currencies and fixed interest.
Paul has a Bachelor of Economics from Macquarie University and is a Member of the Institute of Chartered Accountants.