Perpetual launches new LIC
Perpetual Investments has broken new ground this week, announcing the launch of its first listed investment company (LIC) - Perpetual Equity Investment Company Limited.
It said the new vehicle was aimed at providing investors and their advisers with direct access to Perpetual Investments’ expert investment team and proven investment philosophy and process.
The announcement said the LIC was designed to deliver regular income and long-term capital growth through investment in Australian listed securities with typically a mid-cap focus, as well as up to 25 per cent of the portfolio’s net asset value in opportunistic allocation to global listed securities. It said the structure also offered the flexibility to manage potential equity market risk by moving up to 25 per cent of the portfolio’s net asset value into cash, deposit products and senior debt.
It said the LIC would be managed by Perpetual Investments portfolio manager, Vince Pezzullo, and would be actively managed.
“PIC marries the best ideas from Perpetual’s time-proven Australian and global equity strategies,” Mr Pezzullo said.
According to Pezzullo, the LIC’s coverage of predominantly Australian listed securities with a mid-cap focus and access to global opportunities would offer much needed diversification, particularly to Self Managed Superannuation Funds, whose portfolios have been typically concentrated in local banks and resources.
The LIC’s offer period is expected to open on 21 October and will close on 28 November 2014 with a minimum raising target of $150 million.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
