Perpetual Limited (PPT)

Perpetual's recent performance has been dominated by the integration of the Pendal Group acquisition and the subsequent major strategic review. While the acquisition has substantially increased its total Funds Under Management (FUM) to over A$200 billion, the company has faced challenges with net outflows and the high costs associated with the integration. Performance is heavily influenced by equity market movements, which directly impact FUM and fee revenue. The Corporate Trust and Private Wealth divisions have provided a source of more stable, recurring revenue, partially offsetting the volatility in the asset management arm.

The company's strategic direction has undergone a monumental shift with the announcement of a binding agreement to sell its Wealth Management and Corporate Trust businesses to KKR. This transaction aims to demerge Perpetual into two distinct entities: a simplified, standalone global asset manager and the privatised wealth and trust businesses under KKR's ownership. The future growth outlook is now centered on the success of this separation, unlocking potential value for shareholders, and focusing the remaining asset management business on achieving scale, improving investment performance, and leveraging its expanded global distribution network to reverse fund outflows.