Perpetual to Go Full Steam Ahead Post the Barrow Hanley and Trillium Acquisitions

Perpetual’s struggling investment segment (39% of profit before tax in fiscal 2020) is set to get a boost from the recent acquisitions of Barrow Hanley and Trillium. This should help offset net outflows from its struggling Australian equity strategies. Perpetual is also addressing disappointing earnings in its core equity strategies by also expanding its private segment (22% of PBT) via acquisitions and attracting new advisors and its trust segment (39% of PBT) and diversifying within each segment. Its investment segment manages assets employing an active value style, but we note its Australian equity strategies are facing the structural issues of large superfunds managing more Australian equities in-house, and investors increasing allocation to global equities and passive investment styles.