Money Management – Laura Dew
Perennial Partners has launched a second resources strategy after its first one, Perennial Strategic Natural Resources Trust, hit capacity at $300 million.
The Strategic vehicle was first launched in 2020 but the firm has opted to close it to new investors at $300 million to preserve portfolio flexibility and protect future investment outcomes.
In order to allow new investors to still access the firm’s resources expertise, it has now launched the Global Resources Trust which will provide Australian and offshore investors with access to a global resources universe.
This extends the team’s investment remit from an Australian-focused mandate to a global opportunity set, allowing investment across listed resource companies worldwide, and provides a much larger capacity limit at $3 billion.
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.
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.
Portfolio manager, Ewan Galloway, said: “The launch of the Global Resources Trust reflects the evolution of global resource markets. 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.
“Expanding our investment universe enables us to access those opportunities while maintaining the same disciplined investment philosophy.”
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