Garry Laurence
Perpetual has announced the launch of the Perpetual Wholesale Global Share Fund Hedged, a new fund that will allow investors to minimise the impact of movements in the Australian dollar on their international investments.
Global Equities Portfolio Manager, Garry Laurence, said it was important for investors to consider a range of factors – including movements in currency – when making global investment decisions.
“With around 98% of the world’s investment opportunities located outside Australia, investors have the opportunity to access companies operating in different regions – and industries – than what they would traditionally find in Australia.
“As a result of this, some investors and their advisers may be concerned about the impact of an appreciating Australian dollar, which can have both a positive and negative impact on their investment returns.
“We believe currency movements may have a material impact on equity returns and will be considered in the investment decision making process of this fund. This is why we have created the fund – to minimise the impact on investors’ funds from any adverse movements in currency.”
In keeping with Perpetual’s 45 year track record in value investing, the fund will adopt a bottom-up approach to stock selection, where the decision to buy or sell is based on fundamental quality and valuation.
The diversified portfolio is constructed within a framework that is independent of the benchmark in terms of stock and sector weights.
The fund will substantially hedge the currency exposure arising from investments in international shares back to the Australian dollar.
