Please note: To access all documentation you need to be registered prior to downloading files. Simply REGISTER HERE to receive your username & password.

Not a member yet? - Register NOW

Perpetual Protected Investments Series 4

Perpetual Protected Investments - Series 4
Rebate 2.00% (as additional units)
Closing Date CLOSED
Minimum Investment $50,000
Minimum Investment Loan $50,000
Maturity Date 31 May 2017
Research Adviser Edge Up to 4 stars

Capital protection with an investment loan opportunity

Perpetual Protected Investments – Series 4 (PPI) allows you to build a capital protected investment portfolio with the opportunity of borrowing to invest from an external lender.

It may be suitable for investors who are looking to:
choose from 15 managed funds from a range of fund managers covering Australian and global equities, Chinese and other specialist Asian equities funds and global resources
safeguard their investment through capital protection to take advantage of potential market highs while being protected from the lows
access a tax-effective investment by having absolute entitlement to their portfolio
invest for the long term with capital protection at the end date.

Key benefits

Capital protection at the end date
PPI uses a dynamic management strategy that aims to ensure your portfolio value at the end date (31 May 2017) will be at least equal to your investment amount.

You can tailor your portfolio and build a growth-oriented portfolio by choosing from a range of investment strategies.

PPI gives you capital protected exposure to Australian and global equities as well as other specialist asset classes including China, Asian equities and global resources.

Because we know choice and diversification are important to you, there is a selection of managed funds and investment managers.

Australian equity funds
Ausbil Australian Active Equity Fund
Ausbil Australian Emerging Leaders Fund
Eley Griffiths Group – Small Companies Fund
Perpetual’s Wholesale Australian Fund
Perpetual Wholesale Concentrated Equity Fund
Vanguard Australian Shares Index Fund
Global equity funds
Aberdeen International Equity Fund
Perpetual Wholesale International Share Fund
Platinum International Fund
T. Rowe Price Global Equity Fund
Vanguard International Shares Index Fund (Hedged)
Specialist funds
BlackRock Global Allocation Fund (Class D units) (Aust)
Colonial First State Wholesale Global Resources Fund
Platinum Asia Fund
Premium China Fund

Cashflow management

Throughout the term of the investment, the fees payable for dynamic management (put option premium) and our administration fees are automatically deducted from your portfolio so you do not have to pay these fees and charges from other sources.

Tax-effective structure

As an investor in the product, you own the assets in your portfolio and you have absolute entitlement to those assets. This means any capital gains and/or losses arising during the term in relation to the fund units in your portfolio should be directly attributed to you. Capital losses (if any) can be used to offset capital gains, including those from your other investments.

Gains lock-in

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

Flexibility at the end date
Having absolute entitlement to the fund units provides you with flexibility and choice.

Because you own the units in the funds you select, you are able to decide what you do with them at the end date, which means you control the timing of any capital gains tax event.

At the end date, you can continue holding the fund units (but 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
The product has been approved by Leveraged Equities Limited for the purposes of a Leveraged Equities Investment Loan (‘Loan’). This gives your clients the opportunity to borrow 100% of their initial investment amount.

Loan options
The Loan is a full recourse loan and offers a number of interest rate options:

Interest rate options Interest payments
Variable rate Monthly in arrears
Fixed rate for one year Annually in advance
Fixed rate for one year Monthly in arrears
Fixed rate for the term Annually in advance
Fixed rate for the term Monthly in arrears

Full details about the Loan can be found in the Leveraged Equities Investment Loan product guide.

You should speak to your financial adviser to ensure that borrowing to invest is appropriate for you and if you have any questions on the Loan.

You should generally be able to claim a 100% tax deduction for the administration fees for the product, and if you borrow to invest the fees and interest on your loan.

Minimum amounts

  Minimum Additional
Total investment $50,000 $5,000
Investment per investment strategy $10,000 $500
Leveraged Equities Investment Loan $50,000 $5,000

Fees and charges for the product include:

Fee type How much?
Establishment fee Nil as 100PercentInvesting will waive the 2.20% (inc GST) on your behalf
Administration fee 0.75% pa (inclusive of GST)
Put option premium 0.75% pa of your protected amount (inclusive of GST) - reduced to nil if no fund units are held
Underlying management costs applicable to the funds offered in Perpetual Protected Investments – Series 4 Management fees 0.20 – 2.00% pa Cost recoveries nil – 0.30% pa (estimated) Performance fees nil – 0.30% pa (estimated)
Payment of fees The administration fee and put option premium will be automatically deducted from your portfolio cash account. If there is insufficient money in your portfolio cash account, we may sell funds units or exercise call options to pay these fees.

For further details on all the fees and other costs, please refer to the product disclosure statement for Perpetual Protected Investments – Series 4 for the Product. Leveraged Equities may also charge fees on the Loan.

Important information
Before you invest in Perpetual Protected Investments – Series 4 it is important that you read and understand the terms set out in the product disclosure statement dated 8 March 2010, in particular the risks of investing as set out in the ‘What are the risks?’ section.

You must also obtain professional advice from a financial adviser to invest in the product, as it is a complex product that involves the use of managed funds, call options and put options. To be eligible to invest in the product or obtain a Loan, your application must be placed through a financial adviser.

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 anyone with financial advice and does not take into account anyone’s 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. The opportunity to invest in Perpetual Protected Investments – Series 4 ARSN 142 210 562 is offered in a product disclosure statement dated 8 March 2010 (PDS) which has been issued by PIML. The PDS should be considered before making an investment decision. A copy of the PDS is available above. The completed and signed original application form must be received by Perpetual by 5pm (Sydney time) 18 June 2010. No company in the Perpetual Group (Perpetual Group means Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the dynamic management strategy, the performance of any fund, or the return of an investor’s capital. Although PIML may distribute loan documentation on behalf of Agreed Lenders, it is not otherwise involved in, or responsible for, the provision of investment loans referred to in this document or the PDS. Investment loans are a separate matter between you and the Lender. Perpetual does not make any recommendation as to whether any loan is appropriate for your circumstances. You should obtain professional financial, legal and taxation advice before taking out an investment loan. Leveraged Equities Limited ABN 26 051 629 282 has consented to being named above.

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

return to previous page