ThePerpetualgroup has expanded its operations with the trustee side of the business launching a new operation while the investment business has rolled out a new geared share fund.
The new business stemming fromPerpetual Trustees, Perpetual Fund Governance Solutions, will focus on regulatory and compliance issues with Perpetual stating it would allow managers to concentrate on investment management while providing a third party to act as responsible entity (RE) or superannuation trustee.
Gai Mc Grath will take on the new role of head of the funds governance business while also holding the position of general counsel and company secretary for Perpetual Trustees.
Perpetual has also appointed Amanda Morgan to the role of national manager for the funds governance business, taking on responsibility for client service and business operations.
Mc Grath says clients of the new business would be able to make use of the established systems, technology and risk and compliance framework within Perpetual and thus reduce the time to market for new funds.
“The new Financial Services Reform Act places increasing demands on fund managers. Using a third party RE or trustee can be very cost effective, particularly for boutique or start-up managers who may find outsourcing these functions to be appealing,” McGrath says.
At present Perpetual Fund Governance Solutions has a number of clients signed to the service including West LB Asset Management (Australia) Pty Ltd, Constellation Capital Management,Maple Brown AbbottLimited andFidelity International Limited.
The news of the launch of the new business comes asPerpetual Investmentsroll outs two new Australian equity funds: the Wholesale Share-Plus Fund and Wholesale Geared Australian Fund.
While the funds are primarily wholesale in nature Perpetual Investments group executive Gerard Doherty says they will be on offer to DIY super funds since they provide gearing into shares while complying with superannuation rules.
The Share-Plus fund will allow investors to take short positions in Australian shares of up to 25 per cent of the fund’s net asset value with the money generated from the positions normally reinvested in additional Australian equities, resulting in a much higher investment in Australian shares.
The geared fund will borrow money to increase the amount available for investment with dividend income used to pay the borrowing costs and borrowings based on the dividend yield of the fund and the interest cost of borrowings.
