The Perpetual Diversified Real Return Fund has been awarded a “4 IP“ rating from Research IP, with a score of 4.14/5.
The Perpetual Diversified Real Return Fund aims to target a pre-tax return of 5% per annum above inflation (before fees and taxes) over rolling five-year periods, while minimising downside risk over rolling two-year periods. The Fund will invest in a diversified range of asset classes. 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. Perpetual may adjust the Funds asset allocation to respond to changing market conditions and/or to take advantage of new opportunities.
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Research IP says
The Perpetual Diversified Real Return Fund has been awarded a “4 IP” rating from Research IP with a score of 4.14/5.
• Michael O’Dea is responsible for all final portfolio decisions. A distinctive aspect of his background is his experience in hedge funds, which he believes enables him to more effectively assess the risk–return profile of various strategies within a portfolio context. This perspective is informed by his understanding of the range of alternative strategies available in the market and his experience in previous roles.
Research IP, 22 December 2025
• The team collectively brings substantial experience, with a significant portion of it in multi-asset investing. Many team members have worked together previously, and their average tenure at Perpetual exceeds nine years. The team remains relatively small given the scale of FUM it now manages (particularly following the addition of Pendal funds), but this is intentional—Perpetual believes a tight-knit team enables more efficient discussion and execution of decisions.
• The asset allocation framework is central to understanding the Manager’s decision-making process. The portfolio does not follow a strategic asset allocation; instead, it is structured around four key quadrants. In Research IP’s view, this is an unconventional but effective approach within the multi-asset sector.
• The Funds process is managed across four key factors. The quadrants are: Inflation Protection, Return Seeking, Diversifying Opportunities, and Downside Protection. Their relative attractiveness is continually assessed and naturally evolves throughout the market cycle.
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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.
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