Fund of the month

The Fund of the Month based on our customers' investment choices in February 2010 was the Geared Australian Shares Fund from Perpetual.

Brokerage on this fund is discounted to 0.25% until 11am, 9 April 2010

We've asked Perpetual a few questions to learn more about the fund.

February 2010 snapshot ofGearedAustralian Shares Fundperformance over this month

The Fund outperformed its benchmark, the S&P/ASX 300 Accumulation Index over the month by 1.7% after fees. Over the last 12 months, the Fund returned 118.0%*** after fees, benefiting from the greater exposure to the market through its gearing.

The recent pull back in the Australian share market has provided opportunities for the Fund with several quality companies available at attractive valuations. The Fund is currently overweight in Coal & Allied Industries, Campbell Brothers, News Corporation, Reece Australia and Westpac Banking Corporation. We expect these companies to perform well in an improving economic environment.

What is the investment objective of the fund?

The fund aims to enhance long-term capital growth by gearing (borrowing) through investment in quality industrial and resource shares and other securities.

What is the investment strategy of the fund?

Perpetual researches companies of all sizes using consistent share selection criteria. Perpetual's priority is to select companies that represent the best investment quality and are appropriately priced. In determining investment quality, investments are carefully selected on the basis of four key investment criteria:

conservative debt levels
sound management
quality business and
in the case of industrial shares, recurring earnings.

The gearing level of the Fund must be kept within predetermined guidelines. Within these, Perpetual aims to ensure that the gearing level is maximised, subject to the cost of borrowing being adequately covered by net income.

Derivates may be used in managing the Fund, including for gearing purposes*.

What is the asset allocation?

Asset allocation

** Other Shares may include Healthcare, Property Trusts, Information Technology, Utilities and GICS unspecified/international stocks.

Where this fund may fit within the broader allocation of a portfolio

This fund is suitable for investors who want a high level of capital growth. The Geared Australian Share Fund is however a high risk fund and this needs to be taken into account. The minimum suggested length of investment is 7 years.

More information

Download the fund profile for information on the fund's performance, investment style and more.

Legals

*Derivatives may be used to: adjust currency exposure (where appropriate), hedge selected shares or securities against adverse movements in market prices, gain short-term exposure to the market, build positions in selected companies or issuers of securities as a short-term strategy to be reversed as the physical positions are built up, create a short exposure to a stock for Funds authorised to take net negative positions.

***Perpetual WealthFocus Investments - Perpetual Geared Australian Fund annual return (after fees) as at 28 February 2010. The return has been calculated using exit prices after ongoing fees and assumes reinvestment of distributions. No allowance has been made for entry fees, exit fees or taxation. Past performance is not indicative of future performance.

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 or take into account your objectives, financial situation or needs. You should consider, with a financial 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. The product disclosure statement for Perpetual WealthFocus Investments - Perpetual Geared Australian Fund, issued by PIML, should be considered before deciding whether to invest. The PDS can be obtained from by calling 1800 011 022 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.