Share to Buy Perpetual Limited (PPT)


Perpetual Limited (PPT) is an Australian financial services company that has been operating in one way or another since 1886.

The company offers investment advice to a variety of different clients including individuals, families, financial advisers and organisations.

PPT provides its clients with a broad range of investment, superannuation and retirement income products, with features such as savings plans, tax-effective structures, and online servicing.

The group has three main business units:

  • Perpetual Investments
  • Perpetual Private
  • Perpetual Trusts

FUM growth

Australian fund managers have enjoyed strong share price gains over the past 12 months alongside with rallying equity markets.

The equity market rally has translated into stronger investment performance among funds, and contributed to rising funds under management (FUM).

PPT’s FUM increased 17.7% over the 12 months to September 30, 2013. There was really good momentum during the September quarter, where FUM jumped 10% from the June quarter.

This followed a successful FY13 where net profit soared 128% to $61 million, due largely to $37 million in annualised pre-tax cost savings achieved from the Transformation 2015 program.

The cost benefits are likely to become more pronounced in FY14, where PPT is targeting $50 million in annualised pre-tax savings.

Trust Company acquisition

Last year PPT acquired smaller financial services provider, The Trust Company in a part scrip, part cash bid. Trust shareholders received 0.182 PPT shares for each share owned, with PPT also offering $78 million in cash as part of the bid.

PPT estimates post-tax cost synergies of at least $15 million two years after merger completion.

Revenue synergies are also expected to arise due to cross-selling opportunities across a greater customer base.