Perennial expands resources investment universe

Perennial Partners has launched the Perennial Global Resources Trust, expanding its resources investment capability from just Australia into global markets following the closure of its Perennial Strategic Natural Resources Trust to new investors.

The new trust gives Australian and offshore investors access to investments across listed resource companies worldwide while continuing to be managed by the same investment team.

As the Perennial Strategic Natural Resources Trust approached $300 million in funds under management (FUM), Perennial elected to close it to new investors to preserve portfolio flexibility and protect future investment outcomes.

"The launch of the global resources trust reflects the evolution of global resource markets," Perennial Partners portfolio manager Ewan Galloway said.

"Australia remains one of the world's leading resources markets, but many of the highest quality listed opportunities across commodities such as copper, uranium, aluminium and energy are increasingly found offshore."

The strategy can invest up to 100% offshore, compared with a maximum of 30% under the existing Strategic Natural Resources Trust, and has an estimated long-term capacity of approximately $3 billion. It currently has $57 million in FUM.

The expanded mandate reflects several structural developments reshaping global resource markets, Perennial said.

"Artificial intelligence infrastructure is increasing demand for electricity generation, transmission networks and commodities including copper, aluminium and critical minerals," it said.

"At the same time, electrification, energy security and geopolitical competition are broadening the opportunity set for active resource investors and increasing the importance of global diversification."

Perennial Value Management portfolio manager and resources analyst Sam Berridge said the investment philosophy remains same for the new trust.

"The global resources trust allows us to apply the same disciplined investment process across a much broader universe of companies, commodities and jurisdictions. We believe that creates a compelling opportunity for investors seeking diversified exposure to the global resources sector," Berridge said.