The philosophy behind our portfolios


Perpetual Private Insights

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Key insights at a glance:

How does Perpetual Private build investment portfolios?

Every client is different and their portfolio should be too. So the first step is understanding their needs as this will determine the asset mix in their portfolio. A higher return objective typically requires more equities while a more defensive portfolio may have more exposure to bonds and credit securities. Once we’ve established the level of return a client is looking for, the next step is to ensure the investments are adequately diversified across asset classes.

What do you look for in investment managers?

Perpetual Private uses a manager of manager approach – which means we look to combine the best experts in each asset class to build client portfolios. When I look to select an investment manager my first consideration is how well they understand the asset class in which they’re investing and whether they can demonstrate genuine insight. What’s their track record and length of time in the market? Other key considerations are their research and risk management processes.

What’s the biggest issue for investors in the current market?

The dovish tone of central banks globally. We’re now facing a situation where many government bonds and credit securities are providing negative interest rates globally. In their search for returns, many investors are investing in higher risk assets than they usually would. It’s something we talk to our clients about every day because people need to appreciate the level of risk they are taking in their portfolios.

What does Perpetual offer as alternative investments?

We see our alternatives offering as something unique in the Australian market. We can offer clients access to investment managers and strategies that are not readily available in our market, such as U.S. real estate.

Two of our fund offerings in alternatives are the Perpetual Growth Opportunities Fund and the Perpetual Income Opportunities Fund. The Perpetual Growth Opportunities Fund offers clients access to private equity, unlisted real estate, infrastructure and hedge funds. The Perpetual Income Opportunities Fund invests in a range of credit securities designed to provide consistent income for clients over the long term.

The beauty of these funds is the diversification they offer within a broader portfolio because they are uncorrelated with traditional investment markets.

What’s your view on infrastructure investment?

From an investment portfolio point of view, infrastructure provides a number of unique characteristics. Infrastructure assets have monopolistic positions in their market and their cash flow is typically not as volatile as other sectors of the market. In many cases, the cash flow from infrastructure investments is linked to CPI so it grows over time to counter inflation.


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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 and Perpetual Investment Management Limited (PIML) ABN 1800 866 535, AFSL 234426 and is used by PTCo. It 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 adviser, whether the information is suitable for your circumstances. To view the Perpetual Group's Financial Services Guide, please click here. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. The information is believed to be accurate at the time of compilation and is provided in good faith. The PDS, issued by PIML should be considered before deciding whether to acquire or hold units in the fund. The PDS and Target Market Determination are available on our website at 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. This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change. 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.