Starting this June, Money Management is going to fact check a fund each issue. We’re going to look at a fund’s claims – for performance, for risk and pretty much all the big promises it makes to investors – in its product disclosure statement and promotional materials. Then, with the help of FE Analytics, we’re going to see how these funds actually stack up against their aims.
The Perpetual Pure Value Share Fund
Perpetual’s five FE Crown-rated Pure Value Share Fund has ticked all the boxes in terms of the promises it has made investors.
Launched in 2006, the fund’s Product Disclosure Statement (PDS) specifies that it has no formal benchmark. However, it says that for reporting purposes, the fund is measured against the S&P ASX 300 Accumulation Index.
Since its inception to this April’s end, it has delivered returns of 17.28 per cent, far exceeding that of the index at 6.08 per cent. It has also outperformed its sector, Australian Equities, which returned 5.78 per cent over that period.
Its returns over the seven years, which is the fund’s recommended minimum investment period, to 30 April, 2018 were also strong at 11.98 per cent. This was significantly higher than the sector average of 7.32 per cent.
The fund specifies that its investment aim is “to provide investors with long-term capital growth and income through investment in quality shares”.
With the strong returns above delivered consistently across...