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 came from one investor and net flows were the lowest in more than a year giving hope their sales strategy is working. The upside will come from where they can successfully integrate Pendal and achieve the ~$60m p.a. in cost savings that made the acquisition so attractive. From a technical perspective, we are bullish PPT, however, from an income perspective we need to see evidence of synergies being realised and dividends flowing through to justify continuing to hold in the portfolio.
MM is bullish and long PPT in the Income Portfolio
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