About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, September 18th, 6:55PM
rss
Investment News

Defensive fund gaining traction in New Zealand

Australian-based fund manager Perennial Investment Partners says its new fund has hit a note with advisers in New Zealand and is getting good flows.

Thursday, October 2nd 2014, 6:29AM

Perennial Head of Retail Funds, Brian Thomas, says its Value Wealth Defender Australian Shares Trust has already attracted $6 million in funds from New Zealand investors.

He says the fund offers "a unique way to manage the downside risk in investing in Aussie Shares."

“We’ve been working on the concept of a new way to cushion the downside but it was only when we were able to employ the services of a very experienced risk manager and derivatives expert, Dan Bosscher that the concept came together,” he said

“In many ways we can thank the new regulations on investment banks globally and their underlying capital issues post the GFC to ensure that experienced risk managers like Dan now see a great future with more traditional asset management firms like Perennial.”

The product uses a dynamic protection approach to cushion any major falls – for instance if the market fell 20% overnight the fund currently has protection strategies, currently through put options to ensure that the fund would only fall 10% in this scenario but the risk management doesn’t just stop there. “We use a dynamic and flexible strategies to protect the portfolio even after a one-off shock,” Thomas said.

He says the key differences with other products is the benchmark used.

“We are targeting the full ASX300 accumulation index with this product whereas many other products that also focus on protecting the downside tend to have cash or cash plus benchmarks. We see this as investment nirvana – getting the great returns that historically are available from Australian shares but also focussing on cushioning the inevitable big downturns.”

In terms of New Zealand investors the fund has already proved popular for a new strategy raising around $6 million since the product launch in June.

Thomas says that Investment Trends research shows that 91% of Australian advisers expect at least two major downturns (more than 20% falls in a short period) in the next 20 years.

He says that during the GFC most long-only managers could only go to a small amount of cash.

Quick product summary:

  • Provides dynamic protection with the aim to cushion the effect of any future large market falls
  • Targets the full ASX300 Accumulation Index (rather than say a cash or cash plus benchmark)
  • Daily unit pricing and liquidity
  • Management Fee under 1% p.a
  • Already rated “Recommended” by Zenith

 

« The perfect performance fee: Part OneChina's change of tack slows global growth »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend

Good Returns Investment Centre is brought to you by:

Subscribe Now

Keep up to date with the latest investment news
Subscribe to our newsletter today

FundSource Research
  • Westpac Premium Investment Funds
    27 May 2019
    The Westpac Premium Investment Funds offers a focused investment menu of multi-manager single sector funds that draws on all of the BTNZ investment teams...
  • Westpac KiwiSaver Scheme
    27 May 2019
    The Westpac KiwiSaver Scheme offers a focused investment menu of multi-manager diversified funds that draws on all of the BTNZ investment team full capabilities...
  • Milford KiwiSaver Balanced Fund
    3 May 2019
    The Milford KiwiSaver Balanced Fund is a multi-asset portfolio that is best suited to long term investors who can accept some investment risk over the...
© 2019 FundSource Research.

View more research papers »

Edison Investment Research
  • Heliad Equity Partners
    16 September 2019
    Portfolio clean up under way
    Heliad Equity Partners is repositioning its portfolio following the management changes earlier this year. This involves the gradual disposal of holdings...
  • Ocean Wilsons Holdings
    11 September 2019
    Sailing against the wind
    We forecast Wilson Sons’ (WSON’s) EBITDA to fall 6% y-o-y this year, still affected by the sluggish Brazilian economy and a tough competitive...
  • Deutsche Beteiligungs
    10 September 2019
    Continued sector diversification
    Deutsche Beteiligungs (DBAG) is proceeding to deploy the capital commitments of DBAG Fund VII (€1,010m including top-up fund), with 71% of the main...
© 2019 Edison Investment Research.

View more research papers »

Today's Best Bank Rates
Rabobank 2.00  
Based on a $50,000 deposit
More Rates »
Cash PIE Rates

Cash Funds

Institution Rate 33% 39%
ANZ 0.10    0.10    0.11
ASB Bank 0.10    0.41    0.42
ASB Bank 0.10    0.59    0.56
ASB Bank 0.10    0.61    0.64
ASB Bank 0.15    0.66    0.69
ASB Bank 0.20    0.72    0.75
BNZ 0.10    0.10    0.10
Heartland Bank 1.50    2.59    2.70
Kiwibank 0.75    0.77    0.88
Kiwibank 1.75    1.81    1.89
Nelson Building Society 3.75    3.90    4.08
SBS Bank 1.50    -    -
TSB Bank 0.90    1.64    1.71
Westpac 0.35    0.36    0.38
Westpac 0.05    0.10    0.11
Westpac 1.40    2.16    2.26

Term Funds

Institution Rate 33% 39%
ANZ Term Fund - 90 days 2.50    2.60    2.79
ANZ Term fund - 12 months 3.00    3.39    3.55
ANZ Term Fund - 120 days 2.65    3.09    3.22
ANZ Term fund - 6 months 3.05    3.45    3.60
ANZ Term Fund - 150 days 2.80    -    -
ANZ Term Fund - 9 months 3.05    -    -
ANZ Term Fund - 18 months 3.00    -    -
ANZ Term Fund - 2 years 3.05    -    -
ANZ Term Fund - 5 years 3.20    -    -
ASB Bank Term Fund - 90 days 2.60    2.67    2.79
ASB Bank Term Fund - 6 months 3.20    3.29    3.43
ASB Bank Term Fund - 12 months 3.20    3.33    3.48
ASB Bank Term Fund - 18 months 3.50    3.65    3.81
ASB Bank Term Fund - 2 years 3.65    3.81    3.98
ASB Bank Term Fund - 5 years 4.10    4.28    4.48
ASB Bank Term Fund - 9 months 3.60    3.75    3.92
BNZ Term PIE - 120 days 2.35    -    -
BNZ Term PIE - 150 days 2.40    3.38    3.53
BNZ Term PIE - 5 years 2.60    3.86    4.04
BNZ Term PIE - 2 years 2.60    3.91    4.09
BNZ Term PIE - 18 months 2.60    3.65    3.81
BNZ Term PIE - 12 months 2.70    3.38    3.53
BNZ Term PIE - 9 months 2.75    3.44    3.60
BNZ Term PIE - 6 months 2.75    3.75    3.92
BNZ Term PIE - 90 days 1.90    2.72    2.85
Co-operative Bank PIE Term Fund - 6 months 3.40    -    -
Heartland Bank Term Deposit PIE - 12 months 3.20    3.53    3.69
Heartland Bank Term Deposit PIE - 6 months 3.15    3.43    3.58
Heartland Bank Term Deposit PIE - 9 months 3.15    3.85    4.02
Heartland Bank Term Deposit PIE - 18 months 3.20    -    -
Heartland Bank Term Deposit PIE - 2 years 3.25    3.43    3.58
Heartland Bank Term Deposit PIE - 5 years 3.50    3.85    4.02
Kiwibank Term Deposit Fund - 90 days 2.65    2.72    2.82
Kiwibank Term Deposit Fund - 6 months 3.40    3.49    3.65
Kiwibank Term Deposit Fund - 12 months 3.50    3.39    3.55
Kiwibank Term Deposit Fund - 150 days 3.15    3.65    3.81
Kiwibank Term Deposit Fund - 120 days 2.95    3.03    3.17
Kiwibank Term Deposit Fund - 9 months 3.40    3.49    3.65
Westpac Term PIE Fund - 150 days 2.60    2.88    3.00
Westpac Term PIE Fund - 120 days 2.40    3.38    3.53
Westpac Term PIE Fund - 18 months 2.70    3.29    3.43
Westpac Term PIE Fund - 12 months 2.70    3.49    3.65
Westpac Term PIE Fund - 6 months 2.80    3.44    3.60
Westpac Term PIE Fund - 9 months 2.75    3.17    3.32
Westpac Term PIE Fund - 90 days 2.15    2.56    2.67
Westpac Term PIE Fund - 2 years 2.70    3.79    3.96
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com