PPT -2.81%: While the result was inline in terms of underlying profit, the composition of earnings were weaker, particularly in the prized Trust business where costs were higher. While these were offset by lower costs in Perpetual investments, it seems like cost growth is tracking along at a higher rate overall than the ~6% they guided to. They kept the expected synergies derived from the acquisition of Pendal unchanged at $60m pre-tax while the 90cps dividend announced today included the 35cps special that was paid earlier in the month. They maintained a targeted 60-90% payout ratio and suggested the final dividend payout is likely to be ~75%. All said and done, we expected more upbeat commentary regarding PDL, which we didn’t get + the elevated costs in the Trust business is not ideal.
We were planning to increase our small weighting in the stock (Income Portfolio), but we’ll hold fire for now
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