28/02/2024 17:01

Perpetual (PPT) $24.36

PPT -2.29%: the fund manager and corporate trustee business posted a messy 1H result which included Pedal for the full 6 months for the first time. Revenue climbed 69% to $657.8m, though this was in line with expectations, however, Net Profit of $98.2m was a 4% miss on higher-than-expected costs.

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01/02/2024 09:54

Perpetual Ltd (PPT) $26.00

We remain unconvinced about the merits of the Pendal (PDL) acquisition by PPT, and It now looks increasingly like they overpaid, a good outcome for Market Matters at the time as holders of PDL however with critical fund flow weaker than hoped/expected, time has not been kind to the optics around this deal.  Importantly, the subsequent financial leverage puts the dividend at risk which is one of the reasons many investors hold PPT.

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12/12/2023 09:21

Perpetual Ltd (PPT) $25.58

Last week saw SOL bid $27 for PPT as they looked to split up the business to deliver quick value to shareholders – very Gorden Gekko (Wall Street) and the 1980s. The SOL bid trumped the earlier news that PPT itself was considering a very similar value-unlocking strategy to appease disgruntled shareholders.

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07/12/2023 09:02

Perpetual Ltd (PPT) $23.76

Yesterday, we heard that investment house Washington Soul Patts (SOL) lobbed a $3bn bid for Perpetual (PPT) back on the 21st  of November. It crossed the news wires after-market yesterday, and not surprisingly, the board has rejected the $27 scrip bid, only a few cents above its July high but a 21% premium to yesterdays close.

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30/08/2023 09:10

Perpetual (PPT) $20.96

Perpetual was a stock we previously owned in the Income Portfolio, selling out at $25.40 to buy Magellan (MFG) at $8.73 while we’ve also picked up a nice dividend equivalent to 93cps grossed for franking, equating to a 18% return on the MFG position since June. At the time, we wrote that while we still liked PPT, believing it was worth ~$30, we saw better upside in MFG targeting ~$12 (it’s high since the purchase has been $11.04 cum div). Since then, however, Perpetual has struggled and has fallen sharply post results to sit at $20.96. Is this now value, or a value trap?

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25/08/2023 09:30

Perpetual Ltd (PPT) $23.31

PPT shares fell the most in a month yesterday following its profit miss,  the weakness also saw the stock make new 4 month lows. The underlying profit of $163.2mn was only ~2% below expectations, however lower revenue and higher costs are a bad combination – the latter being a cause for concern. The market’s reaction wasn’t too bad particularly given optimistic analysts, 10 buys, 2 holds and no sells – Perpetual Financials.

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28/06/2023 09:25

Perpetual (PPT) $25.43 & Magellan (MFG) $8.83

As we often say, elastic bands stretch too far in either direction and this is true in many aspects of investing (and life!). One of the elastic bands we think is due a ‘snap-back’ is towards active equity managers that can deliver ‘alpha’. We’ve heard recently from the Future Fund who 6-years ago, went ‘passive’. They are now back to ‘active’ sending a clear message, that different styles work in different environments, and these times are now more suited to managers who pick the eye’s out of the market, assuming they can do this successfully of course.

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27/06/2023 09:41

Active Income Portfolio – Amendment

We are selling PPT to fund the purchase of MFG

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10/05/2023 09:27

Perpetual (PPT) $25.38

In November last year, a consortium led by the Regal Partners (RPL) launched a takeover bid for Perpetual (PPT), who themselves were attempting a takeover of Pendal (PDL). Regal was ultimately unsuccessful with their tilt, however, we think it’s worthwhile revisiting how they thought about the value in the PPT business, and how relevant it is now,  in as simple terms as possible. 

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11/04/2023 10:09

Active Income Portfolio – Amendments

We are tweaking the Income Portfolio.

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