Perpetual Investments is set to respond to client demands for an absolute-return equity fund by making the strategy its priority for the year ahead, an executive of the group said.
Large-balance superannuation clients and high net-worth individuals have expressed interest in the investment style.
“It’s about adding to our product set as we’re already very deep and mature in core Australian funds – we’ve got a geared Australian share fund, small caps fund, an ethical and a sustainable fund,” Perpetual group executive, equities Cathy Doyle said.
“What we didn’t have was an absolute return fund that could go short as well as long in the market.”
As it often takes three to four years to get a product to market and with clients now wanting to see at least a three-year track record, there are no plans for other products this year, Doyle said.
“We do a review annually and ideas [will] come from market trends we see, and client demand,” she said.
In line with its product plans, Perpetual has expanded its equities team, appointing a new analyst who is to begin in late February.
Anthony Aboud will have responsibility for covering the Perpetual Share Plus Long Short Fund as well as developing new absolute return equity products.
Aboud was previously a portfolio manager at Ellerston Capital, where he ran a long short equity portfolio with fund manager Paul Skamvougeras. Skamvougeras left Ellerston, founded as a subsidiary of the private Packer family trust, for Perpetual about two years ago.
“We needed someone with shorting capabilities and expertise, and also someone who’d be a good cultural fit, and Anthony was on our radar,” Doyle said.
“Our ability to strategically manage and build our investment team is a key priority for us. We continue to attract high-quality individuals to our Australian equities team, and its size, depth and ability ensures the ongoing health of our talent pool.”
