Menu

Volatility Alpha

The Perennial Volatility Alpha Trust invests in futures and options on the CBOE S&P 500 Volatility Index with the aim to produce an absolute return with a bias towards generating the strongest returns when there are large equity market drawdowns.

Investment return objective

The Perennial Volatility Alpha Trust invests in futures and options on the CBOE S&P 500 VIX index with the aim to produce an absolute return with a bias towards generating the strongest returns when there are large equity market drawdowns.

Suitable investor profile

Investors with a long term time horizon, seeking exposure to a concentrated portfolio of volatility assets that aims to provide an absolute return over cash. This Trust is only open to wholesale investors as defined under S7619 in the Corporations Act 2001.

Description of Trust

The Trust will take positions in equity derivatives that provide volatility exposure, such as futures and options on the (CBOE S&P 500 Volatility Index (VIX)). The Trust may carry a net long, net short, or net flat/relative value positions in volatility at any one time. The Trust may also be fully invested in cash where there are limited opportunities for profit to be taken.

The Trust’s investment strategy monitors cross-asset risk signals, derived from within the equity derivatives market as well as other asset classes such as credit and foreign exchange, to assess the overall market pricing of risk. By monitoring a range of signals for signs of emerging risk, the Trust aims to position itself to profit from these flows.

To find out more or for a free copy of the offer documents please contact a Perennial Client Services Representative on 1300 730 032

Investment summary

Minimum investment 
$100,000

Minimum additional investment
$25,000

Risk/Return profile 
High

Returns achieved mainly through
Exposure to the VIX

Income distribution 
Annually 

Minimum recommended investment period 
5 years

Investment management fee 
1.00% p.a. 

Performance fee 
Yes

Buy/Sell spread 
0.20/0.20

Net performance View all performance
Latest unit prices

Effective date:
18 Aug 2017

Entry price:
0.9780

Exit price:
0.9741

View past unit prices
Distributions

* A trust 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).

View past distributions
Top stock holdings

The composition of the Trust's investments is subject to constant change. The holding of securities may vary or be disposed of at any time.

Asset allocation

The composition of the Trust's investments is subject to constant change. The holding of securities may vary or be disposed of at any time.

Issued by: The Investment Manager, Perennial Value Management Limited, ABN 22 090 879 904, AFSL: 247293. Responsible Entity: Perennial Investment Management Limited ABN 13 108 747 637, AFSL: 275101.This website is provided for information purposes only. Accordingly, reliance should not be placed on this information as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs or financial situation. While every effort has been made to ensure the information in this website is accurate; its accuracy, reliability or completeness is not guaranteed. Past performance is not a reliable indicator of future performance. Gross performance does not include any applicable management fees or expenses. Net performance is based on redemption price for the period and assumes that all distributions are reinvested. Fees indicated reflect the maximum applicable. Contractual arrangements, including any applicable management fee, may be negotiated with certain large investors.  Investments in the Trusts must be accompanied by an application form. The current relevant product disclosure statements, Additional Information Booklet and application forms can be found on this website. Use of the information on this website is governed by Australian law and is subject to the terms of use.

Back to top