Perpetual Equity Investment Company Reports Net Tangible Asset Backing of $1.18 Per Share as at 27 July 2026

Understanding Perpetual Equity Investment Company’s Business Model and Structure

Perpetual Equity Investment Company Limited operates as a closed-end listed investment company, offering Australian investors exposure to a professionally managed equity portfolio. The company is managed by Perpetual Investment Management Limited, which holds an Australian Financial Services Licence (AFSL 234426) and operates under Australian Prudential Regulation Authority oversight. As a listed investment company, PIC pools capital from shareholders and deploys that capital into a diversified portfolio of equity investments, with the objective of generating long-term capital growth and potentially distributions to shareholders. The company is incorporated in Australia with its registered office at Level 14, 123 Pitt Street, Sydney NSW 2000, placing it within the major financial district of Australia’s largest city.

The closed-end structure of PIC differentiates it from open-ended managed funds, meaning new capital is raised through periodic capital raisings or share issues rather than continuous daily applications and redemptions. This structure allows the investment manager to maintain a stable capital base and pursue a consistent long-term investment strategy without the need to hold excess cash for ongoing redemptions. Perpetual Investment Management Limited, the fund manager, is part of the Perpetual Group, which encompasses Perpetual Limited and its subsidiaries, a significant player in Australian wealth management and investment administration with operations across multiple financial services segments.

Net Tangible Asset Backing as at 27 July 2026: Reported Figures and Tax Provisions

The company has disclosed its NTA backing per ordinary share as at 27 July 2026, with two key figures provided. The NTA before tax was reported at $1.179 per share, while the NTA after tax stood at $1.184 per share. The difference between these two figures reflects provisions for deferred tax liabilities on unrealised gains and losses within PIC’s investment portfolio. This distinction is important for investors, as it shows how potential future tax obligations on unrealised investment gains could impact the net asset value available to shareholders. The after-tax figure of $1.184 provides a more conservative view of the company’s underlying value, accounting for tax that would theoretically be payable if all unrealised gains were crystallised.

The company has explicitly noted that all NTA figures provided are unaudited and approximate. This means the figures represent management’s calculation based on portfolio valuations and asset holdings as at the reporting date, but have not been verified by external auditors. The company update was authorised by Sylvie Dimarco, Company Secretary, and prepared by Perpetual Investment Management Limited on 28 July 2026, one day after the NTA calculation date. Investors should be aware that market conditions, portfolio revaluations, and corporate actions occurring after 27 July 2026 would not be reflected in these NTA figures, and the actual current NTA may differ from the reported amount.

How PIC’s After-Tax NTA Reflects Deferred Tax Positions on Unrealised Investment Gains and Losses

The deferred tax adjustment embedded in the after-tax NTA figure is a critical component of how investment companies communicate their true economic value to shareholders. When PIC’s investment portfolio contains unrealised gains—that is, securities that have increased in value but have not yet been sold—the company accrues a potential tax liability on those gains. Under Australian tax law, capital gains tax becomes payable when investments are realised, meaning sold or otherwise disposed of. By showing an after-tax NTA that accounts for these unrealised gains and associated tax provisions, the company provides investors with a more complete picture of what each share would theoretically be worth if all portfolio gains were crystallised and relevant taxes paid.

Conversely, if the portfolio contains unrealised losses, the after-tax figure may reflect tax benefits or offsets that could reduce future tax payable on realised gains. The difference between PIC’s before-tax NTA of $1.179 and after-tax NTA of $1.184 indicates the direction and approximate magnitude of the net unrealised gain position in the portfolio as at the reporting date. In this instance, the after-tax figure is higher than the before-tax figure, suggesting that any deferred tax liabilities are being exceeded by the potential tax offsets or that the net unrealised position is broadly neutral to slightly beneficial on a tax-adjusted basis. This tax treatment is particularly relevant for investors seeking to understand the long-term wealth creation potential of their investment.

Perpetual Investment Management Limited’s Role as Fund Manager and Investment Adviser

Perpetual Investment Management Limited (PIML), the entity responsible for managing PIC’s investment portfolio and preparing this company update, is a subsidiary of Perpetual Limited, one of Australia’s largest and most established financial services companies. PIML holds AFSL 234426 and is registered as an Australian Credit Licensee, demonstrating its compliance with regulatory requirements and its authority to manage investments on behalf of institutional and retail clients. The appointment of PIML as investment manager places the day-to-day responsibility for portfolio construction, security selection, and risk management in the hands of professional investment experts with access to extensive research capabilities and market infrastructure. This professional management structure is a key feature of closed-end investment companies, allowing individual investors to gain exposure to a diversified portfolio managed by dedicated investment professionals.

The Perpetual Group, of which PIML is a part, operates across wealth management, superannuation administration, financial advisory services, and investment management. This broad platform provides PIC with access to integrated operational support, compliance frameworks, and technology infrastructure that support the fund’s operations. The group’s scale and resources enable the investment manager to conduct comprehensive research, maintain robust risk management processes, and operate efficiently in managing the fund’s assets and shareholder communications. The company update notes that neither the Company, PIML, nor any company in the Perpetual Group guarantees the performance of or any return on an investment in the Company, consistent with standard financial services disclosure requirements.

Key Investor Metrics: Using NTA to Assess Share Valuation and Discount or Premium

Investors in PIC typically use the reported NTA backing per share as a benchmark to assess whether the company’s ASX-traded share price represents fair value, a discount, or a premium to the underlying net assets. When a closed-end investment company’s share price trades below its NTA per share, the share is trading at a discount, potentially offering investors an opportunity to acquire the underlying assets at less than their stated value. Conversely, if the share price exceeds the NTA, the company is trading at a premium, which may reflect market confidence in the investment manager’s stock-picking ability, expectations of future outperformance, or supply and demand dynamics in the share market. The NTA serves as an anchor point for fundamental valuation analysis and helps investors determine the relative attractiveness of the investment.

The frequency and timeliness of NTA reporting are important factors for investors. PIC discloses its NTA backing on a monthly or periodic basis, providing shareholders and prospective investors with regular updates on the fund’s asset value. This regular reporting cadence allows investors to track changes in the NTA over time and identify trends in portfolio performance, market conditions, and any significant portfolio rebalancing or corporate actions. Investors comparing PIC’s performance to other closed-end investment companies or managed funds would typically look at the change in NTA per share over specific periods, adjusted for any distributions paid, to assess the fund’s capital growth and returns generation. The unaudited nature of the NTA figures means investors should also be aware that the actual value may be subject to minor adjustment when formal audited accounts are released.

Perpetual Investment Company’s Australian Listing and Market Accessibility

As a company listed on the Australian Securities Exchange (ASX) under the ticker PIC, Perpetual Equity Investment Company offers direct share ownership and accessibility to Australian retail and institutional investors. The ASX listing provides liquidity, price discovery, and transparency through continuous trading, allowing investors to buy and sell shares at market-determined prices during trading hours. This accessibility is a significant advantage for investors seeking exposure to a professionally managed equity portfolio without the need for large minimum investment amounts that might apply to direct investments in hedge funds or other alternative investment vehicles. The listing also subjects the company to ASX listing rules and Australian Securities and Investments Authority (ASIC) regulations, providing investors with regulatory protections and governance oversight.

The provision of regular NTA disclosures and the maintenance of listing compliance are ongoing obligations that support investor confidence in the company. As a listed entity, PIC is required to make material announcements to the ASX and its shareholders in a timely manner, ensuring that market participants have access to price-sensitive information. The company’s registered office at a prominent Sydney CBD address and its appointment of professional management and administrative service providers underscore its institutional standing and commitment to professional operations. The listing structure also allows investors to gain portfolio exposure in a tax-efficient manner through the capital gain and dividend income streams of the managed fund, subject to their individual tax circumstances.

Risk Factors and Limitations in the Company Update and NTA Calculation Methodology

Investors should be aware of several important limitations and risk factors associated with the NTA figures and the company update provided. The announcement explicitly states that the NTA figures are unaudited and approximate, meaning they have not been independently verified by external auditors and may be subject to revision when formal audited accounts are released. The methodology used to calculate NTA, including the valuation of illiquid or hard-to-value securities within the portfolio, the treatment of transaction costs, and the accrual of tax provisions, all involve estimates and judgements that could affect the reported figure. Market volatility and rapid price movements in the portfolio securities between the reporting date of 27 July 2026 and the actual date on which investors receive or read this information could also mean that the current NTA differs from the reported figure.

The announcement includes a comprehensive disclaimer stating that the information is general in nature and does not constitute financial advice, and that neither the Company nor its service providers guarantee any investment returns or performance. Past performance is explicitly noted as not being indicative of future performance, a critical warning for investors evaluating the fund’s historical track record. The company notes that its investment portfolio is subject to market risk, including equity market volatility, sector-specific risks, and economic cycle impacts. The after-tax NTA figure, while useful for understanding the tax impact of unrealised gains, relies on assumptions about future tax rates, the timing of realisation of gains, and the applicability of specific tax rules that may change over time or vary based on individual investor circumstances. Investors should consult with a financial adviser before making investment decisions based on the NTA and other information provided in the company update.

Regulatory Compliance and Governance Framework Supporting PIC’s Operations

Perpetual Equity Investment Company Limited operates within a comprehensive regulatory and governance framework designed to protect investor interests and ensure transparent operations. The company is subject to ASX listing rules, which require continuous disclosure of material information, maintenance of adequate financial controls, and adherence to corporate governance standards. PIML, the investment manager, holds an AFSL and operates under the oversight of ASIC and the Australian Prudential Regulation Authority, ensuring that investment management activities are conducted in accordance with the Corporations Act 2001 (Cth) and applicable regulatory standards. The appointment of a Company Secretary, Sylvie Dimarco, who authorised this company update, reflects the governance structure and accountability mechanisms in place.

The company update itself reflects regulatory requirements for consistent and transparent communication with shareholders and market participants. The detailed disclaimer, the identification of the investment manager and responsible parties, and the explicit notation of the unaudited nature of the figures all comply with Australian financial services laws. The Perpetual Group’s broader compliance infrastructure, including risk management frameworks, internal controls, and compliance monitoring, supports PIC’s adherence to regulatory obligations. Investors can expect that the company will continue to provide regular NTA updates, annual audited accounts, and other disclosures required by ASX listing rules and ASIC regulations. The regulatory framework provides a foundation of transparency and accountability that is designed to protect investor interests and support fair and orderly market functioning.

Looking Ahead: What Investors Should Monitor for Perpetual Equity Investment Company

Investors holding or considering an investment in PIC should establish a framework for monitoring the company’s performance and market position over time. Regular tracking of the monthly or periodic NTA updates, comparing the NTA per share to the ASX-traded share price to identify changes in the discount or premium, and reviewing the fund manager’s commentary on portfolio positioning and market outlook are key elements of ongoing investor due diligence. Changes in the NTA per share month-on-month can indicate whether the investment manager’s stock selection is generating positive returns, whether market conditions are supporting valuations, or whether unexpected losses or impairments have affected the portfolio. Investors should also monitor any announcements regarding changes in investment strategy, significant portfolio actions, distributions, or capital management initiatives.

The company’s audited annual report, typically released several months after the financial year end, will provide detailed information about portfolio holdings, performance attribution, fees and expenses, and management commentary that supplements the basic NTA disclosure. Investors may also wish to monitor announcements regarding any special dividend distributions, capital returns, or share buyback programs that might be implemented to address premium or discount valuations. Changes in the investment manager, modifications to the investment mandate, or governance developments should also be tracked, as these could impact the fund’s future performance and strategy. By maintaining active oversight of PIC’s disclosed information and market performance, investors can make informed decisions about the appropriateness of the investment for their portfolio and financial objectives.