Perennial Investment Management has announced it will close one of its ASX-listed active ETFs after failing to achieve the necessary scale for economic viability.
Perennial has applied to the ASX for the fund’s status to be revoked from the last trading day of 12 May, 2026.
Options for unitholders include:
- Unitholders may trade or redeem their units through the ASX or directly with the responsible entity in the normal manner until market close on the last trading day.
- Continue to hold their units, participate in the fund’s winding up, and receive a final distribution payment, if any, that represents a final distribution of any income as well as their proportionate share of the net proceeds from the sale of the fund’s assets.
Perennial said in its statement to the ASX: “Upon careful review and consideration, we have made the decision to voluntarily wind up the Fund, as it is unlikely to reach the scale necessary for economic viability. Furthermore, the Investment Manager, Daintree Capital Management, believes APRA’s 2023 decision to phase out additional Tier 1 capital instruments (hybrids) has undermined the Fund’s core rationale. Consequently, we believe a voluntary wind-up of the Fund to be in the best interests of Unitholders.”
DHOF targeted an absolute return over time by investing in a diversified portfolio of hybrid securities which offer the best risk-adjusted returns available from a global universe of securities. The aim was to provide a steady stream of income over the medium term, by investing a diversified portfolio of Australian and global hybrid securities and cash and provide a return (after fees) that exceeds the benchmark by 3-4% measured throughout a market cycle.
