Five out of five for Perpetual’s Diversified Real Return Fund


Michael O’Dea

The Perpetual Diversified Real Return Fund (the Fund) has exceeded its targeted return of CPI +5%p.a. to deliver net returns of 7.5% per annum over a rolling five-year period to 31 December 2015.

The Fund delivered volatility of just 3.5% per annum compared to the ASX200’s annualised volatility of 12.2% during the same five-year period[1].

In an environment of low interest rates and climbing equity market volatility, the Fund’s active and value driven approach offers investors a prudent alternative to protecting and growing capital.

Head of Multi Asset, Perpetual Investments, Michael O’Dea said: “Real return funds are becoming increasingly attractive to investors and advisers seeking investment opportunities which balance the desire for return with risk.

“Perpetual’s Diversified Real Return Fund is designed to act as a ‘shock absorber’ during periods of extreme volatility, which means investors are less likely to suffer large losses when the market falls.

“By actively and continually altering the asset allocation in response to changing market conditions, the Fund aims to provide greater certainty of investment outcomes in volatile times and give investors peace of mind.”

Continuous risk management and a broader range of investments are key features of the Fund, ensuring a lower level of sensitivity to extreme market events.

Real return funds provide investors with greater diversification beyond the more popular asset classes, such as equities, cash and bonds, by including listed commodities, currencies and derivatives markets as well as access to unlisted property and infrastructure.

“In a climate of low cash rates and low government bond yields, selecting less risky investments merely results in achieving low returns. When inflation is also taken into account, there is a genuine risk of not growing capital above rises in the cost of living.

“Real return funds offer a simple solution to today’s complex problems faced by investors, helping them access a wide variety of asset classes they may not be able to hold directly, without taking on more risk than they can afford to take,” Mr O’Dea said.


[1]Morningstar Direct. Figures are net of fees.

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