Changes to Perpetual's Wholesale Diversified Funds

Perpetual Investments' Australian share funds

From 1 May 2006, Perpetual Investments ("Perpetual") will be broadening the investment guidelines for most of their Australian share funds. This will impact the following funds ("funds") offered through ARC Master Trust:

• Perpetual’s Wholesale Balanced Growth
• Perpetual’s Wholesale Conservative Growth
• Perpetual’s Wholesale Diversified Growth

For these funds, the allowable investments of the Australian share component have been expanded to allow investment in offshore-listed companies on an opportunistic basis only. This means that the offshore-listed investment must represent superior value or greater performance potential than an Australian listed company and will only be held if there is no equal or better opportunity available in the Australian share market.

For this Australian share component, Perpetual will limit exposure to offshore-listed investments to 20% and there has been no change to Perpetual’s investment process as they will continue to invest in companies that meet their quality criteria at attractive prices.

As advised by Perpetual the Australian share funds will continue to be benchmarked against the S&P/ASX 300 Accumulation Index and the same Perpetual Australian equities team will continue to manage the Australian share funds and remain responsible for these funds’ investment performance.  In regards to the offshore-listed investments, they will leverage off the expertise of their global equities business that was launched in 2005.

Perpetual will generally fully hedge exposures to foreign currencies to protect against fluctuations in the Australian Dollar. 

What we are telling your clients

The TOWER website will be updated with this information and there will be a flyer available detailing these changes if your clients request a hard copy to be mailed to them. Please view the changes to Perpetual Funds to see what will be placed on our website and available in hard copy on request.

If you have any questions regarding these changes or need further assistance, please contact one or our Adviser Service Consultants on 1800 101 014. Alternatively you can email us at arcmt@au.towerlimited.com

Kind Regards,

Sue Mieog
Head of Investment Products

Disclaimer
This document has been prepared to be used by financial planners and advisers only. It is not to be provided to individual clients. The information contained in this document is general information only and cannot be considered to be financial advice. The information does not take account of the investment objectives, financial situation or particular needs of any particular client. To the extent permissible by law, TOWER Australia Limited (ABN 70 050 109 450, AFSL 237848) and its related companies (TOWER) specifically disclaims any liability that may arise for any direct, indirect, incidental, consequential or special damages that may arise from the access to or use of this document. No liability is accepted by TOWER for errors and omissions or for loss or damage suffered as a result of reliance on this document.

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TOWER Australia Ltd
A.B.N. 70 050 109 450
AFSL Number 237848