Perpetual has three business units: an asset manager, a private wealth advisor, and a corporate trust service provider. Acquisitions form part of the group’s strategy to build scale and expand its products and services.
Acquisitions of specialist managers like Trillium and Barrow Hanley improve Perpetual’s growth prospects. There is potential for upside from increased reinvestment, which should help revive net inflows.
Bears
Perpetual’s renewed focus on acquisitive growth heightens the risks of overpayment and acquisition indigestion.
Perpetual is one of Australia's oldest financial services firms, founded in 1886. It has three operating segments, with the investments business being the main earnings generator. It is an active manager of listed assets. Perpetual also provides financial planning services to high-net-worth clients via its private wealth segment, though this business is currently being sold. In its trust segment, it provides outsourced responsible entity services to funds, as well as custodial and trustee services in the debt capital markets, particularly in securitization issuances.