Perpetual's Geared Australian Fund
Access Fund Overviews using the below links:
- Perpetual’s Wholesale Geared Australian Share Fund
- Perpetual WealthFocus Investments Geared Australian Share Fund
- Perpetual WealthFocus Super Geared Australian Share Fund
- Perpetual WealthFocus Allocated Pension Geared Australian Share Fund
- Perpetual WealthFocus Term Allocated Pension Geared Australian Share Fund
- Perpetual WealthFocus Investment Advantage Perpetual's Geared Australian investmment option
Our philosophy
Perpetual’s Geared Australian Funds expand on Perpetual’s expertise in managing Australian shares. The essence of a geared fund is to provide returns higher than would normally be achieved with a non-geared portfolio. In exchange for the higher returns the investor assumes a higher level of risk.
We believe that equity markets are semi-efficient, and that opportunities exist for adding value through the selection of good quality, well-priced securities to minimise the downside risk. Perpetual believes that such companies can be identified by fundamental in-house research.
This process can achieve outperformance by selecting securities trading at a discount to their inherent value.
Our process
Perpetual’s Geared Australian Share funds utilise Perpetual’s expertise in managing Australian shares, aiming to enhance long-term capital growth by borrowing (gearing) to invest in quality industrial and resource shares. The gearing strategy aims to enhance long term returns with investors’ monies as well as borrowed money. This strategy is referred to as “internal” gearing, ie, the fund itself borrows rather than the individual investor.
The underlying portfolio is based on Perpetual’s Australian Share Fund and is benchmarked against the S&P/ASX 300 Accumulation Index.
Perpetual’s investment style is based on bottom-up fundamental analysis, specifically targeting quality stocks. This approach selects stocks based on company-specific fundamental factors, then by value relative to price. This ensures that our Australian share portfolios have a value bias. We believe we can find high quality undervalued stocks while avoiding poor quality stocks that may appear cheap.
The Fund’s investment approach is to borrow (gear) to invest in good quality Australian industrial and resources shares and other securities that are held by Perpetual’s Australian Share fund.
For further information please contact piresearch@perpetual.com.au
