Institutional Investors

Cash Enhanced

The Trust provides a well diversified actively managed portfolio of cash and fixed income securities that seek to provide consistent cash plus returns.

Trust Objective

To provide a total return that exceeds the benchmark, UBSA Bank Bill Index, over rolling three-year periods by 0.50% p.a. (before fees).

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Suitable Investor Profile

This Trust may be suitable for investors with an investment horizon of at least one year, who are seeking exposure to a portfolio of predominantly short duration fixed interest securities with the potential to earn returns in excess of cash, and who require a high level of capital protection.

Investors should be aware that there may be some volatility in monthly returns primarily due to fluctuations in market interest rates.

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Fund Facts

Investment Approach

Perennial Fixed Interest focuses on valuing the medium term economic outlook and market fundamentals using a disciplined decision-making framework. The process involves constantly assessing new information to refine Perennial Fixed Interest's view of value and compare that to current market prices. The degree to which market prices diverge from fair value, determines the level of conviction and the degree to which the portfolios deviate from the benchmark. Perennial Fixed Interest employs multiple strategies to add value including modified duration and yield curve management, sector allocation and security selection.

Investment Strategy

The Trust invests in a range of high quality interest bearing securities, including:

  • bank securities;
  • asset backed securities; and
  • corporate securities.

To control the Trust's exposure to interest rate risk, the modified duration of the portfolio will be managed within the range of -0.75 to +1.25 years. This range is consistent with a trust that has a low risk profile. There is no maturity limit on individual securities.

Perennial Fixed Interest, the investment manager, seeks to add value using a combination of interest rate and yield enhancement strategies. Interest rate strategies are directed principally towards actively managing the average maturity of the Trust's investment based on expected trends in market interest rates, commonly referred to as duration management. Yield enhancement focuses on investing a significant proportion of the Trust's investments in high quality floating rate notes, securities structured to pay a fixed margin over prevailing bank bill rates. Within this sector, Perennial Fixed Interest seeks to identify sectors and securities that offer attractive relative value.

The Trust is authorised to utilise derivative instruments for risk management purposes, subject to the specific restriction that they cannot be used to gear portfolio exposure.

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Investment Summary

Perennial Cash Enhanced Trust
Minimum Investment $100,000
Minimum Added Investment $5,000
Risk/Return Profile Low
Returns achieved mainly through Income
Income Distribution Quarterly
Minimum Recommended Investment Period 1 Year

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Unit Prices

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Distribution

Perennial Cash Enhanced Trust
Frequency As at Reinvested
NAV Price($)		 CPU Fund Payment CPU * Discounted Capital Gain CPU
Quarterly 30/06/10 1.0283 1.2898 0.0000 0.0000
Quarterly 31/03/10 1.0293 0.9600 0.0000 0.0000
Quarterly 31/12/09 1.0195 1.3000 0.0819 0.0000
Quarterly 30/09/09 1.0139 0.8500 0.0230 0.0000
Quarterly 30/06/09 0.9923 2.8860 0.0000 0.0000
Quarterly 31/03/09 0.9872 0.2500 0.0000 0.0000
Quarterly 31/12/08 0.9867 0.5500 0.0000 0.0000
Quarterly 30/09/08 0.9837 0.7500 0.0000 0.0000
Quarterly 30/06/08 0.9831 3.0005 -- --
Quarterly 31/03/08 0.9928 1.7500 -- --
Quarterly 31/12/07 1.0080 2.0000 -- --
Quarterly 30/09/07 1.0185 1.2300 -- --
Quarterly 30/06/07 1.0190 2.1122 -- --
Quarterly 31/03/07 1.0239 2.0000 -- --
Quarterly 31/12/06 1.0275 1.3500 -- --
Quarterly 30/09/06 1.0247 1.2000 -- --
Quarterly 30/06/06 1.0214 1.5182 -- --
Quarterly 31/03/06 1.0233 1.5000 -- --
Quarterly 31/12/05 1.0234 1.4000 -- --
Quarterly 30/09/05 1.0226 1.4000 -- --
Quarterly 30/06/05 1.0210 1.1404 -- --
Quarterly 31/03/05 1.0182 1.4000 -- --

* A fund payment is a payment made by a Managed Investment Trust that represents a distribution of its Australian sourced income (other than dividends, interest and royalties).

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Performance and Fees

Perennial Cash Enhanced Trust
PERFORMANCE TABLE 1 MONTH % P.A. QUARTER % P.A. FIN. YEAR TO DATE % P.A. 1 YEAR % P.A. 2 YEARS % P.A. 3 YEARS % P.A. 5 YEARS % P.A. SINCE INCEPT. % P.A. FEES  
As at 31/8/2010                 Entry Fee (%) NIL
GROSS PERFORMANCE 0.5 1.5 1.1 7.2 6.8 6.5 6.4 6.2 Exit Fee (%) NIL
BENCHMARK (UBS Bank Bill) 0.4 1.2 0.8 4.2 4.4 5.5 5.7 5.6 Management Fee (% pa) 0.28
VALUE ADDED 0.1 0.3 0.3 3.0 2.4 1.0 0.7 0.6 Performance Fee NIL
NET PERFORMANCE 0.5 1.4 1.1 6.9 6.5 6.2 6.1 5.9 Buy/Sell Spread (%) Nil
Average Annual Compound Rate of Return
As at 31/8/2010 GROWTH RETURN % P.A INCOME DISTRIBUTION RETURN % P.A. TOTAL RETURN % P.A BENCHMARK % P.A *
1 Year 2.4 4.5 6.9 4.2
3 Years 0.5 5.7 6.2 5.5
5 Years 0.1 5.9 6.1 5.7
Since Inception 0.4 5.5 5.9 5.6

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Publications

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We are Perennial

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Investment Manager: Perennial Investment Partners Ltd ABN 59 087 901 620, AFSL No. 238763. Sub Manager: Perennial Value Management Limited ABN 22 090 879 904, AFSL No. 247293. Perennial Fixed Interest Partners Pty Limited ABN 35 099 336 357, Perennial International Equities Management Pty Limited ACN 099 336 375, Perennial Growth Management Pty Limited ABN 41 099 336 384 and Perennial Real Estate Investments Pty Limited ABN 35 117 913 685 are Subsidiaries and Authorised Representatives of Perennial Investment Partners Limited.