Perennial launches ‘best investment ideas’ trust
Perennial Investment Partners has launched an investment product designed specifically to seek out “exceptional investment opportunities presented by recent market turbulence”.
The Partners Trust has been developed to take advantage of the potential created by combining the best investment ideas of Perennial’s five key portfolio managers.
Each manager will bring their eight to 10 highest conviction investment ideas to the Partners Trust portfolio based on a two-year investment time horizon.
Managing director Anthony Patterson said “more than 75 per cent of securities in the new portfolio have return expectations above 20 per cent based on our current numbers”.
“We will obviously be wrong about some, but with some 40 to 50 of these stocks in the portfolio, we are confident of delivering good outcomes.”
Patterson described the trust as representing a “sensible, reasonable strategy for investors to begin making a start to invest cash they might have available to them”.
“We have therefore created the product that we believe is perfect for now”.
Perennial has sought to align its interests with investors’ by offering a competitive wholesale base fee, with a performance fee paid only if returns are greater than a stated hurdle, which is currently 13 per cent per annum.
The initial investors in the trust were Perennial executives and Perennial’s major backer, IOOF.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
