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Perennial hands out rebate sweetener

By Madeleine Collins
2 minute read

Perennial will cut its management fees as a pre-30 June incentive.

Boutique fund manager Perennial will temporarily return management fees to investors to bump up super inflows.

Perennial retail funds management head Brian Thomas said the decision to cut fees was an alternative to spending large amounts on mass advertising around the Government's super reforms and not due to performance.

"Many people who I respect in the industry have been call for a better deal for investors," Thomas said. "If this leads to increased competition then bring it on."

New investments received before 30 June in 24 of Perennial's 30 trusts will have management fees in August, September and October rebated as extra units in the trusts.

An investment of $100,000 in Perennial's most popular trust, Perennial Value, would receive a $230 rebate for the quarter based on the annual management fee of $920.

The sweetener is aimed at high net worth investors, particularly self-managed super funds. The offer applies to funds that have a minimum investment of $25,000.

Thomas said while he hopes master trusts will pass on the rebate to the end investor, the market will determine what platforms do with the extra cash.

"It's their decision to give back to investors," he said.

Thomas called on other fund managers to follow Perennial's lead and give rebates to clients instead of increasing their advertising spend.

"Maybe they should give back to clients. They're free to copy us if they want."

He said Perennial has no intention of increasing fees after the offer ends.

"That would be a terribly sneaky, disgusting thing to do," he said.