Perpetual Investments’ first listed investment company (LIC), Perpetual Equity Investment Company Limited (PIC), aimed at SMSF trustees has received a recommended rating from research houses Lonsec and Zenith.
In awarding its recommended rating, Lonsec said the manager’s long-standing investment philosophy and process was one of the key strengths of the offering.
In regard to Perpetual’s investment approach, Lonsec said it “considers the ability … to alter the asset allocation to global equities and cash to enhance the risk practices of PIC”.
It expressed a “high regard for Perpetual’s quality-focused and valuation-driven research process” and said it had a “favourable view of the investment skill and growing portfolio management track record of [Perpetual Investments portfolio manager] Vince Pezzullo as well as the depth and experience of the wider equities investment team”.
Zenith was also complimentary of Perpetual’s investment process and said it “believes that PIC will generate excess returns for its investors over the medium to long term”.
In regard to the type of investor PIC would suit, it said “PIC should suit investors seeking an Australian-focused equities exposure, while Perpetual’s strong value bias should provide resilience in falling markets along with a steady dividend income”.
PIC will predominantly look to invest in Australian mid-cap listed securities, but will also have the ability to allocate as much as 25 per cent of the portfolio’s net asset value to specifically selected global equities.
In addition, the company will have the flexibility of holding up to 25 per cent of the portfolio’s net asset value in cash or deposit products.
The PIC initial public offering is aiming to raise a minimum capital target of $150 million and will remain open until 28 November.
