Perennial Value launches microcap trust
Perennial Value’s Smaller Companies team has launched a new investment trust aimed at excess returns from the growing microcap end of the market.
According to Perennial, the new trust, which was created in response to growing interest from investors, would offer exposure to a portfolio in sub $500 million companies.
Additionally, the new trust would invest in pre-IPO (Initial Public Offering) opportunities.
According to Perennial’s small cap portfolio manager, Andrew Smith, the microcaps universe was still largely under-researched which presented plenty of opportunities to add value.
“These investors want a proven, professional manager able to conduct detailed in-house research, as well as bring the capability to seize opportunities as they present themselves,” he said.
“We have significant experience in assessing IPOs and adding value via our selection process. In this trust we can take this one step further and invest in pre-IPO opportunities if we believe the investment case will appeal to the market.
“We can also provide strategic input given our experience in listed markets,” he said.
Perennial also said that its Perth-based small cap resources analyst, Sam Berridge would manage the resources component of the portfolio bringing his ‘hands-on’ approach.
The new trust planned to invest in a portfolio of up to 70 stocks with a market cap of less than $500 million at the time of purchase.
Recommended for you
There is one specific risk that is a significantly higher concern for financial services directors compared to companies overall and is impacting their risk appetite, according to the AICD.
Global fund managers are shunning bonds, with the asset class seeing the largest drop in allocations in more than 20 years.
Australian Ethical has seen its funds under management reach $10 billion, driven by organic customer growth and superannuation contributions.
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
