Perpetual Limited — Capital/Financing Update 2008

Nov 9, 2008

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9 November 2008 (MR 08 – 44)

Perpetual re-opens applications to its mortgage funds

Perpetual Limited (Perpetual) today announced that it had re-opened applications for its Monthly Income Fund, Wholesale Monthly Income Fund and Private Investor Mortgage Fund. The three funds represent Perpetual’s largest mortgage funds with combined assets of $1.7 billion under management.

Perpetual suspended applications and introduced a quarterly redemption facility for all its Monthly Income and Mortgage Funds (Funds) on 23 October. The change was in response to the recently introduced guarantee on bank deposits, which had prompted a sharp increase in redemptions from mortgage funds across the industry.

Perpetual’s Group Executive Income and Multi-sector, Mr Richard Brandweiner, said the company was re-opening applications to the funds at the request of a number of clients.

“Current market conditions are particularly favourable for mortgage funds, which tend to outperform cash alternatives in falling interest rate environments. The recent sharp reductions in the RBA Cash Rate and falling term deposit rates make high grade mortgage funds very attractive,” he said.

“Founded in 1966, the Monthly Income Fund is also one of the oldest and most highly-awarded funds in Australia. Its primary aim is to provide a regular income stream for investors, the majority of whom are retirees. The Funds are invested in a conservative and high quality mortgage portfolio and have afforded our investors with a high degree of security and appropriate protection from market volatility. These are the two key factors which prompted our clients’ requests to reopen the Funds to applications.”

Mr Brandweiner added: “We understand the current situation has been confusing for some investors. As a leading fund manager, we need restore the deserved confidence in these Funds, which have proven to be a very secure option for investors for over 40 years.”

“The new withdrawal facility gives more control over liquidity in the Funds. It helps us manage redemptions in a manner that does not put at risk investors income or capital. Importantly, this approach creates a level playing that looks after all investors equally.”

“Furthermore, last week we committed to continue making pension payments to self-funded retirees in our WealthFocus Pension Plan, which has also been affected by recent developments. Many of these investors rely on redeeming some of their capital on a regular basis in order to supplement their income and we will step in to make sure these payments continue to be made.”

Please refer to Perpetual’s website for more information on Perpetual’s Monthly Income and Mortgage Funds. Updated product disclosure statements on the Monthly Income Fund, Wholesale Monthly Income Fund and Private Investor Mortgage Fund will be available shortly.