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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23/02/2023 16:48

Perpetual (PPT) $25.95

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.

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25/01/2023 09:11

Perpetual Ltd (PPT) $26.80

The big change in the portfolio this week was the scrip takeover of Pendal (PDL) which sees Perpetual enter the portfolio. After the acquisition, Perpetual now run $200b in assets alongside an attractive and stable Trust business. Perpetual announced further outflows from their funds over the December quarter, however, the bulk of the redemptions...

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23/12/2022 09:19

Perpetual Ltd (PPT) $24.59

PPT bounced +3.2% yesterday and dragged Pendal (PDL) up as a consequence given the looming takeover that seems likely to proceed, with the ratio now worth $5.16 for each PDL share versus yesterday’s close of $4.99 i.e. PDL is still the cheaper way to buy Perpetual (PPT) and the reason we own PDL in the Income Portfolio.

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17/11/2022 16:58

Pendal (PDL) $4.93 & Perpetual (PPT) $27.59

PPT -12.63%, PDL +10.54%: Another twist in this ongoing tussle today with the pendulum swinging back in favour of Pendal.  This morning saw a number of announcements including a court ruling regarding the proposed merger. The key points being:

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