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Update 23
June 2008
The final interest rates for the
100% Investment Loan within
Perpetual Protected Investments – Series
3 have now been set:
|
Interest rate option |
|
Variable |
|
Fixed annually |
|
Fixed for the term |
|
|
Final interest rate |
|
10.60% |
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10.69% |
|
10.95% |
|
Perpetual have decided not to offer the
Capitalised Investment Loan
option to any investors. |
An investment that can be geared for growth,
with in-built safety features and no margin
calls.
Perpetual Protected Investments - Series 3
enables investors to build an investment
portfolio that can be geared for growth, with
in-built safety features and no margin calls. It
will appeal to investors who are looking to:
|
• |
choose from 20 managed funds from a
range of fund managers covering Australian and global
equities, Chinese and Asian equities, global resources,
global property and global infrastructure |
|
• |
borrow up to 100% of their initial investment amount plus
the interest, with no margin calls |
|
• |
safeguard their investment through capital protection
to take advantage of potential market highs while being
protected from the lows |
|
• |
access a tax-effective investment
strategy by having absolute entitlement to their
portfolio. |
Key benefits
Borrow up to 100% of the investment amount
Investors have the opportunity to borrow 100% Investment Loan
with fixed and variable interest rate options, plus an optional Annual
Interest Loan to borrow and prepay the interest on your 100%
Investment Loan each year (fixed rate investment loans only).
Safeguard capital
This product provides you with access to a dynamic
management strategy that aims to ensure that the value of
your portfolio will at least equal your investment amount at
the protection end date (31 May 2015). You must remain
invested till this date to receive the benefit of capital
protection.
No margin calls
You don’t pay any margin calls along the way.
Diversification
You can build a growth-oriented portfolio by choosing
from a range of 20 investment strategies. Because we know
choice and diversification are important to you, there is a
selection of asset classes and investment managers available
to you.
|
Australian equity funds |
|
Ausbil Australian Active Equity Fund |
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Ausbil Australian Emerging Leaders Fund |
|
NEW – Challenger Wholesale Australian Share
Fund |
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Perpetual’s Wholesale Australian Fund |
|
Schroder Wholesale Australian Equity Fund |
|
NEW – Vanguard Australian Shares Index Fund |
|
Global equity funds |
|
AXA Wholesale Global Equity Value Fund |
|
NEW – DWS Global Equity Thematic Fund |
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GVI Global Industrial Share Fund |
|
Perpetual’s Wholesale International Share Fund |
|
T. Rowe Price Global Equity Fund |
|
NEW – Vanguard International Shares Index
Fund (Hedged) |
|
Specialist funds |
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Aberdeen Asian Opportunities Fund |
|
Colonial First State Wholesale Global Resources Fund |
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IOOF/Perennial Global Property Trust |
|
Macquarie International Infrastructure Securities
Fund |
|
NEW – Merrill Lynch Global Allocation Fund
Class D Units |
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NEW – Perpetual’s Wholesale Ethical SRI Fund |
|
NEW – Platinum Asian Fund |
|
NEW – Premium China Fund |
Mercer operates an investment consulting business and is one
of the world’s leading asset consultants. Mercer has helped
us select the investment managers, with all funds chosen on
the basis they are well-regarded funds in their own right and
collectively form a comprehensive investment menu.
Mercer’s view of an investment fund reflects its opinions on the
investment manager’s skill, investment process and business
management. Mercer assesses an investment manager’s
competitive advantage relative to its peers and the likelihood of
its fund achieving stated return objectives.
Manage cash flow
All fees are deducted out of the product so you do not
have to pay these fees from other sources.
If you borrow to invest using a 100% Investment Loan you can
lock in fixed interest payments, allowing you to better plan
your cash flows each year.
Tax-effective structure
With Perpetual Protected Investments – Series 3 you have
absolute entitlement to the units in the funds you select.
This means any capital gains and/or losses arising during
the protection period in relation to those fund units are
directly attributed to you.
Capital losses (if any) can be used to offset capital gains,
including those from your other investments.
In addition, if you borrow to invest, you will have the
potential to claim a partial or full tax deduction for fees
and interest on the loan as well as the fees for the
product.
Capital gains lock-in
During the protection period, some of the unrealised
gains within your portfolio may be ‘locked in’, increasing
your protected amount.
Flexibility at the protection end date
At the end of the protection period (subject to repaying
any outstanding loan amounts) you can:
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• |
continue holding the fund units (with no
capital protection), |
|
• |
redeem them for cash, or |
|
• |
potentially roll them over into another
series of Perpetual Protected Investments (if one is
available). |
Borrowing to invest
Minimum amounts
For the 100% Investment Loan, the minimum amount you can
borrow is $50,000.
Interest rate options
For the 100% Investment Loan, you can choose from one of
the following three interest rate options:
|
1. |
Variable |
|
2. |
Fixed annually |
|
3. |
Fixed for the term |
The indicative interest rate you will pay
will be made available on at
www.perpetual.com.au/structuredproducts/ppi3.
The final Interest rate will be determined
on or about 20 June 2008 and be published on Perpetual's
website
www.perpetual.com.au/structuredproducts/ppi3
or you can phone Perpetual on 1800 002 513.
Fees
Fees and charges include:
|
Fee Type |
How much? |
|
Establishment fee |
2.20% |
|
Administration fee |
0.75% pa |
|
Dynamic management fee |
0.70% pa of your protected amount
(reduced to nil if no fund units are held) |
|
Underlying management costs
applicable to the funds offered in PPI – Series 3 |
Management fees 0.34 – 1.88% pa
Cost recoveries nil – 0.30%
Performance fees nil – 0.30% (estimated) |
|
Payment of fees |
The administration fee and dynamic
management fee will be deducted quarterly in arrears
from your cash account (established as part of your
portfolio). If there is insufficient balance in your
cash account, units in the funds may be sold to
generate cash for the payment of these fees |
Please refer to the current PDS for further
details on all the fees and other costs applicable to
Perpetual Protected Investments – Series 3.
Interest rates
For the 100% investment loan,
you can choose from one of the following three
interest rate options.
| Variable |
10.50% |
| Fixed annually |
10.50% |
| Fixed for the term |
10.70% |
These interest rates are indicative only and
have been updated as at 21 May 2008. You should
note that interest rates have changed frequently
in recent times. For indicative rate updates
please check
here. The final interest rates will be set
on or about 20 June 2008. |
Important information
Before you invest in Perpetual Protected
Investments – Series 3 it is important that you read and
understand the terms set out in the PDS, in particular the
risks of investing as set out in the Risks section.
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Offer opens |
26 May 2008 |
|
Offer closes |
27 June 2008 |
This information has been prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535, AFSL 234426. It is general information only and is
not intended to provide you with financial advice and does not take into account your individual objectives, financial situation or needs. You should consider, with a
financial and tax adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as
a result of any reliance on this information. Interests in the scheme are offered in a product disclosure statement (PDS) which has been issued by PIML for Perpetual
Protected Investments – Series 3. The PDS should be considered before making an
investment decision. No company in the Perpetual Group (Perpetual Group means Perpetual Limited ABN 86 000 431 827
and its subsidiaries) guarantees the capital protection strategy, performance of any fund, or the return of an investor’s capital.
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