With interest rates more likely to rise than fall in the near term, it may be worth considering using a floating rate fund, rather than a term deposit or bond fund, for your client’s income needs or defensive allocation.
About the Perpetual Diversified Income Fund
The Perpetual Diversified Income Fund invests in a range of income-generating assets such as bank-issued bonds, corporate bonds and asset backed securities.
The Fund aims to achieve 2% over the UBS Bank Bills Index before fees, over a rolling three-year period, and is actively-managed to be highly diversified and liquid, as well as providing downside protection.
And as a floating rate fund, your clients will see the immediate benefit of any rises in interest rates as, all things being equal, higher interest rates means higher returns.
This Fund may suit those of your clients who are:
And with a current running yield of around 8%, and a weighted average life of 2.4 years, investing in the Fund now allows your clients to take advantage of the relatively high premium for taking credit risk.
More information?
The Fund’s summary flyer and latest fund profile, along with our range of educational resources, will help you when discussing the Fund's recent performance, current holdings and overall outlook with your clients.
Your Perpetual Account Executive can also arrange an appointment with one of our portfolio specialists, who can provide you with further information about this opportunity and answer any questions you may have.
This information has been prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535, AFSL 234426 for financial advisers only. It is general information only and is not intended to provide you with financial advice. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. The relevant product disclosure statement (PDS) for the Perpetual Diversified Income Fund, issued by PIML, should be considered before deciding whether to acquire or hold units in the Fund(s). The PDS can be obtained by calling 1800 062 725 or visiting www.perpetual.com.au. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. Past performance is not indicative of future performance.
