We're pleased to share insights from the Australian Financial Review's coverage of exceptional performance in the Australian fund management sector. The article highlights Thomas Rice's Perpetual Global Innovation Share Fund, which returned 52.6 per cent net of fees for the year to September 30, with annualised returns of 27.7 per cent over three years.
The piece showcases how forward-thinking investment strategies and rigorous stock selection can deliver outstanding results for global equities strategies. Rice's philosophy particularly resonates with sophisticated investment approaches:
"Everything that actually matters in investing is in the future. Any stock is going to be based on its future cash flows. It's not observable. It's entirely theoretical. So it's all about coming up with theories about how businesses develop, what creates a competitive advantage and why it's not competed away."
Rice emphasises focusing on change and innovation across sectors, running a diversified portfolio of 40 to 50 unrelated stocks spanning technology, healthcare, life sciences, and industrials. His approach centres on identifying misunderstood or mispriced opportunities rather than adhering to traditional value or growth categories.
The fund's success demonstrates how maintaining flexibility and a fresh perspective can generate exceptional returns. As Rice notes: "People hold on to things for too long because they've owned them in the past."
To read the article, click the link below.