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Perpetual: Solid history reaps rewards

SMSF Service Provider Awards: Australian share fund

A long track record and proven experience can be a considerable advantage when it comes to managing money. The winner in the Australian share fund category of the CoreData SMSF Awards, Perpetual Investments, benefits from its history.

“Our experienced equities team makes active investment decisions based on a unique process that has been tried and proven over all market cycles since 1966,” Perpetual Investments distribution general manager Dean Winterton says.

“At the heart of Perpetual’s investment process is the rigorous discipline of using four quality filters: sound management, quality of business, recurring earnings and conservative debt. Only the companies that pass through all of those filters are long-listed for further scrutiny.”

This process and philosophy of seeking quality and value, while protecting against downside risk, has delivered for investors. Over the year to September 30, the Perpetual Wholesale Australian Share Fund gained 30.25 per cent. Over three years to that date it added 13.4 per cent.

While SMSF trustees on average already invest a large part of their portfolios in Australian equities, Winterton says actively managed Australian equities funds have a place in SMSF portfolios as they provide exposure to particular parts of the market that aren’t easily accessed.

Over recent years, Perpetual has launched a series of managed funds that specifically accommodate the needs of SMSF investors.

Winterton says that across these funds, the manager provides shorting capability, highly concentrated exposures and access to under-researched companies and sectors.

For example, the Perpetual Pure Equity Alpha Fund, launched in March 2012, invests in both long and short positions of predominantly Australian shares. It has returned 11.85 per cent over the year. The longer running Perpetual Wholesale Share-Plus Long-Short Fund added 32.6 per cent over the year and has gained 16.72 over three years.

In September, the manager launched the Perpetual Pure Microcap Fund, which aims to provide investors with long-term capital growth through investments in Australian companies whose market capitalisation is less than $250 million on acquisition.

“In addition, we launched our first separately managed account (Direct Equity Alpha) in May 2013 to provide further opportunity for SMSF investors,” Winterton says.

“We see continued growth in SMSFs and it will remain one area of focus. We remain committed to providing a range of funds to our investors.”

Perpetual general manager of adviser distribution Jorden Brown collected the award.

More SMSF Service Provider Award winners

  • PIMCO: Fixed income
  • BGL: SMSF accounting software/administration
  • Magellan: International shares
  • Macquarie Adviser Services: Cash and accounting
  • Colonial First State: Investment platforms
  • Multiport: SMSF administration
  • TAL: Life insurance
  • ING Direct: Term deposits
  • AMP Capital: Commercial property
  • AMP Bank: SMSF term deposits
  • NAB: SMSF property loans

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