Perennial Value reveals a market first listed investment company, Wealth Defender Equities Limited
Perennial Value Management Limited (Perennial Value) has unveiled a distinctive Listed Investment Company (LIC). Wealth Defender Equities Limited (ASX: WDE) opens greater investor access to Perennial Value’s renowned Australian equities investment capability, combined with its innovative “airbag” dynamic protection against downside market falls.
WDE has appointed Perennial Value as the investment manager and will invest in Perennial Value’s unique Wealth Defender investment strategy. The Wealth Defender investment strategy invests in a diversified portfolio of quality Australian companies, with an overweight to stocks outside the ASX top 20 (a long held characteristic of Perennial Value’s portfolios) as compared with the S&P/ASX 300 Accumulation Index.
The Wealth Defender investment strategy is designed to maximise equity returns when markets rally and cushion investors from significant falls in the market as they occur.
Guiding the formation of WDE is a strong independent Board chaired by Mr Alan Schoenheimer ‐ former CEO, Asia Pacific and Head of International for Russell Investments. Mr Dick Morath and Mr Paul Clitheroe AM are the remaining WDE non‐executive directors.
John Murray, Perennial Value founder and Managing Director, and a Director of WDE, said the LIC will deliver an exclusive choice for investors and their financial advisers.
“The Wealth Defender investment strategy actively seeks to deliver a ‘best of both worlds’ approach: the benefits of investing in a rising share market, coupled with the active ‘cushioning’ against significant market falls that may impact on the value of investor portfolios,” he said.
Murray, who was recently inducted into the Australian Fund Manager Hall of Fame* said investors today find themselves in a record low interest rate environment – a factor encouraging investors to seek a higher tax effective yield and potential growth available from shares.
“We believe the Wealth Defender approach will be attractive to many investors and self‐directed superannuation funds seeking the benefits of diversification, targeting select mid‐cap companies (ex‐20) with strong dividends, healthy balance sheets and growth potential.”
WDE Chairman Alan Schoenheimer, added “The Wealth Defender capability aims to assist investors with the capital risks associated with share market investment.”
WDE: Offer expected to open 27 March 2015 and will close on 5 May 2015, with a minimum capital raising of $50 million and a maximum of $160 million. Participants in the WDE Initial Public Offer will qualify for a special loyalty option scheme.
The offer is managed by Joint Lead Managers Lonsec Limited, Macquarie Capital Australia Limited and Morgan Stanley Australia Securities Limited.
Co‐Lead Managers include Bell Potter Securities Limited, CBA Equities Limited and Ord Minnett Limited.
*Australian Fund Manager Hall of Fame, as awarded in October 2014, Australian Fund Manager Foundation Awards.
