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Perpetual Protected Investments Series 3

Perpetual Protected Investments - Series 3
Cash Rebate
(Investment Loan Only)
Rebated as additional units (Investment Only) 2.00%
Closing Date CLOSED
Minimum Investment $25,000
Minimum Investment Loan $50,000
Maturity Date 31 May 2015
Research   Aegis Research Highly Recommended
  Lonsec Research Recommended
  S&P Research Strong



Due to changes in interest rate deductibility for capital protected borrowings announced in the recent Federal Budget, Perpetual have issued a Supplementary PDS for Perpetual Protected Investments – Series 3.

Perpetual have not received a final determination from the Australian Tax Office about capitalising interest on a loan. Given the uncertainty this creates for investors, Perpetual have decided to not offer the Capitalised Investment Loan option to any investors.
Update 23 June 2008

The final interest rates for the 100% Investment Loan within Perpetual Protected Investments – Series 3 have now been set:
Interest rate option
Fixed annually
Fixed for the term
  Final interest rate

Perpetual have decided not to offer the Capitalised Investment Loan option to any investors.

An investment that can be geared for gro
wth, with in-built safety features and no margin calls.

Perpetual Protected Investments - Series 3 enables investors to build an investment portfolio that can be geared for growth, with in-built safety features and no margin calls. It will appeal to investors who are looking to:
choose from 20 managed funds from a range of fund managers covering Australian and global equities, Chinese and Asian equities, global resources, global property and global infrastructure
borrow up to 100% of their initial investment amount plus the interest, with no margin calls
safeguard their investment through capital protection to take advantage of potential market highs while being protected from the lows
access a tax-effective investment strategy by having absolute entitlement to their portfolio.

Key benefits

Borrow up to 100% of the investment amount

Investors have the opportunity to borrow 100% Investment Loan with fixed and variable interest rate options, plus an optional Annual Interest Loan to borrow and prepay the interest on your 100% Investment Loan each year (fixed rate investment loans only).

Safeguard capital

This product provides you with access to a dynamic management strategy that aims to ensure that the value of your portfolio will at least equal your investment amount at the protection end date (31 May 2015). You must remain invested till this date to receive the benefit of capital protection.

No margin calls

You don’t pay any margin calls along the way.


You can build a growth-oriented portfolio by choosing from a range of 20 investment strategies. Because we know choice and diversification are important to you, there is a selection of asset classes and investment managers available to you.
Australian equity funds
Ausbil Australian Active Equity Fund
Ausbil Australian Emerging Leaders Fund
NEW – Challenger Wholesale Australian Share Fund
Perpetual’s Wholesale Australian Fund
Schroder Wholesale Australian Equity Fund
NEW – Vanguard Australian Shares Index Fund
Global equity funds
AXA Wholesale Global Equity Value Fund
NEW – DWS Global Equity Thematic Fund
GVI Global Industrial Share Fund
Perpetual’s Wholesale International Share Fund
T. Rowe Price Global Equity Fund
NEW – Vanguard International Shares Index Fund (Hedged)
Specialist funds
Aberdeen Asian Opportunities Fund
Colonial First State Wholesale Global Resources Fund
IOOF/Perennial Global Property Trust
Macquarie International Infrastructure Securities Fund
NEW – Merrill Lynch Global Allocation Fund Class D Units
NEW – Perpetual’s Wholesale Ethical SRI Fund
NEW – Platinum Asian Fund
NEW – Premium China Fund

Mercer operates an investment consulting business and is one of the world’s leading asset consultants. Mercer has helped us select the investment managers, with all funds chosen on the basis they are well-regarded funds in their own right and collectively form a comprehensive investment menu.

Mercer’s view of an investment fund reflects its opinions on the investment manager’s skill, investment process and business management. Mercer assesses an investment manager’s competitive advantage relative to its peers and the likelihood of its fund achieving stated return objectives.

Manage cash flow

All fees are deducted out of the product so you do not have to pay these fees from other sources.

If you borrow to invest using a 100% Investment Loan you can lock in fixed interest payments, allowing you to better plan your cash flows each year.

Tax-effective structure

With Perpetual Protected Investments – Series 3 you have absolute entitlement to the units in the funds you select. This means any capital gains and/or losses arising during the protection period in relation to those fund units are directly attributed to you.

Capital losses (if any) can be used to offset capital gains, including those from your other investments.

In addition, if you borrow to invest, you will have the potential to claim a partial or full tax deduction for fees and interest on the loan as well as the fees for the product.

Capital gains lock-in

During the protection period, some of the unrealised gains within your portfolio may be ‘locked in’, increasing your protected amount.

Flexibility at the protection end date

At the end of the protection period (subject to repaying any outstanding loan amounts) you can: 

continue holding the fund units (with no capital protection),
redeem them for cash, or
potentially roll them over into another series of Perpetual Protected Investments (if one is available).

Borrowing to invest

Minimum amounts

For the 100% Investment Loan, the minimum amount you can borrow is $50,000.

Interest rate options

For the 100% Investment Loan, you can choose from one of the following three interest rate options: 
1. Variable
2. Fixed annually
3. Fixed for the term

The indicative interest rate you will pay will be made available on at The final Interest rate will be determined on or about 20 June 2008 and be published on Perpetual's website or you can phone Perpetual on 1800 002 513.


Fees and charges include:
Fee Type How much?
Establishment fee 2.20%
Administration fee 0.75% pa
Dynamic management fee 0.70% pa of your protected amount (reduced to nil if no fund units are held)
Underlying management costs applicable to the funds offered in PPI – Series 3 Management fees 0.34 – 1.88% pa
Cost recoveries nil – 0.30%
Performance fees nil – 0.30% (estimated)
Payment of fees The administration fee and dynamic management fee will be deducted quarterly in arrears from your cash account (established as part of your portfolio). If there is insufficient balance in your cash account, units in the funds may be sold to generate cash for the payment of these fees

Please refer to the current PDS for further details on all the fees and other costs applicable to Perpetual Protected Investments – Series 3.
Interest rates

For the 100% investment loan, you can choose from one of the following three interest rate options.
 Interest rate option  Indicative interest rate
 Variable 10.50%
 Fixed annually 10.50%
 Fixed for the term 10.70%

These interest rates are indicative only and have been updated as at 21 May 2008. You should note that interest rates have changed frequently in recent times. For indicative rate updates please check here. The final interest rates will be set on or about 20 June 2008.

Important information
Before you invest in Perpetual Protected Investments – Series 3 it is important that you read and understand the terms set out in the PDS, in particular the risks of investing as set out in the Risks section.

Offer opens 26 May 2008
Offer closes 27 June 2008

This information has been prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535, AFSL 234426. It is general information only and is not intended to provide you with financial advice and does not take into account your individual objectives, financial situation or needs. You should consider, with a financial and tax adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Interests in the scheme are offered in a product disclosure statement (PDS) which has been issued by PIML for Perpetual Protected Investments – Series 3. The PDS should be considered before making an investment decision. No company in the Perpetual Group (Perpetual Group means Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the capital protection strategy, performance of any fund, or the return of an investor’s capital.

100PercentInvesting may receive a trailing commission which is paid by the fund manager and is NOT an additional charge to the investor.

Simply download an Investment Brochure/PDS above. It’s that easy!
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