Perpetual : Q2 Business Update - January 2022
PPT.AX
For personal use only
Perpetual Limited
ABN 86 000 431 827
Angel Place,
Level 18, 123 Pitt Street
27 January 2022
Sydney NSW 2000
Australia
Phone +61 9229 9000
ASX Limited
www.perpetual.com.au
ASX Market Announcements Office
Exchange Centre
20 Bridge Street
Sydney NSW 2000
Via electronic lodgment
Second Quarter 2022 Business Update
Perpetual Limited advises that it has released the quarterly business update for the period ended 31 December 2021 (as attached).
The release of this announcement was authorised by Chief Executive Officer under delegated authority from the Board.
Yours faithfully
Sylvie Dimarco
Company Secretary (Authorising Officer)
About Perpetual
Perpetual is an independent financial services group operating in funds management, financial advisory and trustee services. Our origin as a trustee company, coupled with our strong track record of investment performance, has created our reputation as one of the strongest brands in financial services in Australia. For further information, go to www.perpetual.com.
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For personal use only
ASX Announcement
Perpetual Limited
ABN 86 000 431 827
Angel Place,
27 January 2022
Level 18, 123 Pitt Street
Sydney NSW 2000,
Australia
Phone +61 9229 9000
www.perpetual.com.au
Perpetual Limited (ASX:PPT) ("Perpetual") Second Quarter Business Update
CEO Commentary
Chief Executive Officer and Managing Director, Rob Adams said, "The focused execution of our strategy is continuing to deliver results this quarter, with further growth in assets across all divisions of Perpetual, including steady growth in Perpetual Corporate Trust (PCT) and Perpetual Private (PP) and another quarter of positive flows in Perpetual Asset Management Australia (PAMA) - the third consecutive quarter of net inflows for PAMA. It is pleasing to see the positive momentum continuing to build across all areas of Perpetual.
We have continued to fast-track the build-out of our global distribution team to support the growth of Perpetual Asset Management International (PAMI) and it was particularly pleasing to see another quarter of strong growth for Trillium, which has now reached a record A$9.2 billion in AUM2,4, growing by over 70% in US dollar terms5 since acquisition in June 2020.
"Barrow Hanley experienced net outflows of A$2.2 billion2, mainly in lower margin US equity and fixed income strategies. However, consistent with our expectations at the time of acquisition, Barrow Hanley's Global Equities strategies continue to attract new flows and we have a strong pipeline of interest from clients
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globally. As we saw with Trillium, we anticipate continued investment in Barrow Hanley's distribution capability will improve the flows profile over time.
"In line with our strategy to deliver on client needs, we are making it easier for investors to access our funds through a range of structures in both PAMA and PAMI. In December, we launched two Barrow Hanley mutual funds in the US, opening access to the US$36 trillion intermediary market6, to Barrow Hanley capabilities for the first time in their 40-year history. With the mutual fund structure now in place, we have the foundations to launch additional vehicles for both Barrow Hanley and Trillium as we broaden the distribution channels for both businesses.
"In PAMA, we launched two active exchange-traded funds (Active ETFs) during the quarter, making it easier for retail investors to access our specialist investment capabilities in ESG and global innovation.
"The launch of these new offerings in the US and Australia, combined with continued strong investment performance and a market dynamic now clearly favouring a rotation to value, is delivering strong interest in our investment capabilities across the group.
"Pleasingly, we have made excellent progress in the integration of our most recent acquisitions of Jacaranda Financial Planning in PP and Laminar Capital in PCT and we are pleased with the positive client engagement and new opportunities ahead of us.
"We have positive momentum across all divisions, with our earnings guidance today showing strong growth in our business in the first half of FY22, and we are confident that our strategy, combined with current market conditions, positions us well for continued growth."
Perpetual Asset Management International
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Please see Trillium's investment performance details: https://trilliuminvest.com
Please see Barrow Hanley's investment performance details: https://www.barrowhanley.com
Perpetual Asset Management Australia
The performance of our investment capabilities can be found on our website
www.perpetual.com.au/investments/pricing-and-performance
Perpetual Corporate Trust
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Perpetual Private
Earnings and expense guidance
Based on preliminary unaudited financials for the half year ending 31 December 2021, the company expects its Underlying Profit After Tax for 1H22 to be in the range of $77 million to $81 million.
In addition, we reaffirm our FY22 operating expense growth guidance11 of between 18% - 22%, with a skew to 2H22.
For more information please contact:
Investors:
Media:
Susie Reinhardt
Jon Snowball
Head of Investor Relations
Domestique
Perpetual Limited
+61 477 946 068
Tel: +61 401 399 781
11 As per guidance at FY21 on 19 August 2021, and the update in the Q1 2022 announcement dated 21 October 2021, this guidance excludes performance fee expense.
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Disclaimer
Perpetual Limited published this content on 26 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2022 21:48:29 UTC.