The Perpetual Diversified Real Return Fund has been issued a “4 IP” rating by Research IP, with a score of 4.05/5.
The Perpetual Diversified Real Return Fund (“the Fund”) will invest in a diversified range of asset classes which are weighted according to the level of risk they contribute to the portfolio. Assets will be managed to effectively diversify these risk exposures. The combination of assets held by the Fund at any time are those which we believe provide the greatest probability of achieving the target return over rolling five-year periods. We may quickly adjust the Fund’s asset allocation to respond to changing market conditions and/or to take advantage of new opportunities.
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Research IP says
“There is a definite focus on risk allocation throughout the investment process, the Manager being especially cognisant of tail risks. The attention paid to this aspect of portfolio management is one of the overall objectives of the Fund i.e. downside protection. This emphasis also helps to address sequencing risk for investors. Sequencing risk refers to the timing and order of negative investment returns and the effect these have on the overall return for the investor, which are especially important when considering withdrawals from the Fund.“
“The Manager is essentially attempting to smooth the return profile. An investor could expect less drawdowns compared to a standard balanced strategy, but also less upside.“
“Research IP notes investors will gain access to investment strategies and structures that are not readily available to retail investors. This enhances the diversification an investor can achieve in their portfolio.“
“Research IP highlights the two different fee structures between Class W and Class Z. The performance fee applied in the Class Z is well-structured when aligned with the lower base management fee and cap of 1%. However, there is a trade-off with a fund structure like this between maximising upside return and protecting investors capital.“
Research IP, 30 July 2021
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Disclaimer, Disclosures and Warnings
Research IP strongly recommends this document and report be read in conjunction with the relevant Product Disclosure Statement. Research IP gives no warranty of accuracy or completeness of information in this document. Any information, opinions, views or recommendations are general information only and do not take into consideration any person’s particular financial situation or goals and therefore does not constitute financial advice. This document should not be relied upon as a substitute for financial advice from your financial adviser.