Vince Pezzullo

Perpetual Equity Investment Company Limited aims to deliver regular income, long-term capital growth through domestic and global opportunities

Perpetual Investment Management Limited (Perpetual Investments) has unveiled its first listed investment company – Perpetual Equity Investment Company Limited (ASX: PIC) – providing investors and their advisers with direct access to Perpetual Investments’ expert investment team and proven investment philosophy and process.

The company is designed to deliver regular income and long-term capital growth through investment in Australian listed securities with typically a mid-cap focus, as well as up to 25% of the portfolio’s net asset value in opportunistic allocation to global listed securities. Its structure also offers the flexibility to manage potential equity market risk by moving up to 25% of the portfolio’s net asset value into cash, deposit products and senior debt.

Led by Perpetual Investments Portfolio Manager, Vince Pezzullo, PIC will be actively managed.

“PIC marries the best ideas from Perpetual’s time-proven Australian and global equity strategies,” Mr Pezzullo said.

“The portfolio will be actively managed and focus on delivering regular income and long-term capital growth. While Australian listed securities will be the core of the portfolio, it has been structured to provide flexibility in how returns are delivered to investors, while effectively managing risk.”

PIC generally expects to release to the ASX the net tangible asset backing of its shares (NTA) as at the end of each business day within two business days – providing enhanced transparency for investors.  PIC will be the first LIC in the market to do this.

“We believe it’s important for investors to understand the value of what they own so PIC expects to calculate and release its daily NTA to the ASX,” Mr Pezzullo said.

According to Mr Pezzullo, PIC’s coverage of predominantly Australian listed securities with a mid-cap focus and access to global opportunities also offers much needed diversification, particularly to SMSFs, whose portfolios have been typically concentrated in local banks and resources.

“We see PIC as being an ideal addition to the portfolios of many Australian investors, in particular, SMSFs,” he said.   

PIC gives a broader range of investors access to Perpetual Investments

The launch of PIC is the latest growth initiative from Perpetual Investments and follows the announcement of the Perpetual Global Share Fund in August 2014.

Michael Gordon, Group Executive Perpetual Investments, said PIC will give a broader range of investors access to Perpetual Investments’ proven investment philosophy and process through a new channel.

“This is about recognising the changing behaviours of Australian investors and responding to their needs,” Mr Gordon said.

“Investors are seeking transparent, liquid investments as part of a diversified portfolio and this is what we are delivering through PIC. Perpetual Investments’ consistent track record of investing excellence is underpinned by its proven investment process that focuses on value and quality. With an experienced investment team behind it, we believe PIC is an attractive proposition for investors.”

PIC’s offer period is expected to open on 21 October and will close on 28 November 2014 with a minimum raising target of $150 million. The offer has been arranged through CBA Equities and Taylor Collison and is being jointly managed by Macquarie Capital, Morgan Stanley Australia and ANZ Securities. The co-lead managers are Baillieu Holst and Lonsec.

The post Perpetual launches its first listed investment company appeared first on AdviserVoice.

Perpetual Limited has announced strong results for the 2013/14 FY.

Perpetual Limited (Perpetual) has delivered strong results for the 12 months to 30 June 2014 with underlying profit after tax (UPAT) of $104.1 million, up 37%, and statutory net profit after tax (NPAT) of $81.6 million, up 34% on FY13.

The Board has determined to pay a fully franked final dividend of 95 cents per share, taking FY14 fully franked dividend to 175 cents per share, up 35% on last year. Perpetual’s Chief Executive Officer and Managing Director, Geoff Lloyd, said 2014 was a strong year for Perpetual, its clients and shareholders.

“Our Transformation 2015 (T15) strategy to simplify, refocus and grow Perpetual is delivering strong operational and financial results, and this is underpinned by our ongoing investment outperformance,” Mr Lloyd said.

“We have now completed the first two phases of T15 on plan, with annualised savings of $50 million pre-tax to date. Since launching the strategy in 2012, NPAT has increased threefold and UPAT is up 59%.

“Our attention is now on growth,” he said

A key growth initiative was the acquisition of The Trust Company, which completed in December 2013.

“The Trust Company integration is on track,” Mr Lloyd said, “Expected pre-tax annualised savings have increased from $15 million to $18-20 million, and positive client feedback is reflected in high retention rates.“Today we are also announcing a new growth initiative – the launch of the Perpetual Global Share Fund to meet increasing demand from clients for global equities exposure.

“Global equities is a natural and logical extension of our highly regarded and successfulAustralian equities investment business and our launch follows an incubation period of three and a half years in which the fund has outperformed its benchmark significantly,” Mr Lloyd said.

“We look forward to offering clients access to global equities through Perpetual’s proven, value-oriented investment philosophy and process,” Mr Lloyd said.

Business Unit Overview

Perpetual Investments

In FY14, Perpetual Investments delivered profit before tax of $113.6 million, up 30% on FY13, driven by equity market gains, a return to positive net inflows and a continued focus on expenses. The business improved its profit margin on revenues from 45% in FY13 to 51% in FY14.

“We are pleased to report a full year of positive net inflows, particularly given the continued outstanding performance of our asset management team now supported by a reinvigorated sales and distribution strategy,” Mr Lloyd said.

“It was rewarding to be named Fund Manager of the Year again in 2014 and it’s an exciting time as we expand into global equities,” he said.

Perpetual Private

Perpetual Private’s profit before tax increased by 135% to $21.6 million and reflects a solid performance from the core business and the acquisition of The Trust Company.

Total revenue of $143.8 million was up 24% on FY13 and the cost-to-income ratio improved from 92% in FY13 to 85% in FY14.

“This is a strong result for Perpetual Private which now has a scalable business with strong foundations for growth after a number of years of significant investment and organisational change.

“With our trusted independent brand, high levels of client advocacy and awarded range of advisory services, Perpetual Private is well placed to meet the needs of high net worth individuals and families seeking professional, quality advice built around client needs,” Mr Lloyd said.

Perpetual Corporate Trust

Perpetual Corporate Trust’s profit before tax was $25.7 million, a 40% increase on the previous year. This reflects improved securitisation markets, notably the higher-margin RMBS non-bank and asset backed securities market. The Trust Company acquisition has diversified and strengthened the business.

“During the year Perpetual Corporate Trust experienced good deal flow, with 36 new transactions in 2H14, including a significant uplift through The Trust Company acquisition,” Mr Lloyd said.Outlook

“Our T15 strategy is now firmly in the growth phase and has good momentum. We will continue to examine both organic and inorganic opportunities with discipline.

“With our deep fiduciary heritage, trusted independent brand and solid investment track record, we look forward to continue helping protect and grow the investments and retirement savings of our clients,” Mr Lloyd said.

The post Perpetual delivers strong results and returns in 2014 appeared first on AdviserVoice.

Mr Moromalos will join Perpetual Investments on Monday 22 September and moves into the role after seven years at State Street Global Advisors as Vice President, Manager Business Development.

As Head of Research and Consultant Relationships, Mr Moromalos will work closely with research houses to manage Perpetual Investments’ fund ratings. He will also engage with asset consultants on the inclusion of Perpetual Investments’ funds in their model and implemented portfolios.

Dean Winterton, General Manager Distribution, Perpetual Investments, said Mr Moromalos’ experience will add to the strength of Perpetual Investments’ offering in this area.

“George’s combination of experience in the institutional sector and deep knowledge of the asset consultant community means he is well placed to drive our business outcomes and meet our clients’ needs,” Mr Winterton said.

“Research houses and asset consultants are an important part of our client base and are central to the success of our distribution strategy. With George’s solid understanding of the sector and strong relationships, he’ll play a significant role in expanding our footprint.”

Mr Moromalos brings to Perpetual Investments experience in distribution strategy, institutional sales and relationships, consultant relationship management and product/marketing management.

He has nearly 14 years of experience in the financial services industry. Mr Moromalos was previously a financial planner before moving into product management with Credit Suisse in 2003 and then into institutional distribution in 2006. He holds a Bachelor of Commerce from the University of New South Wales and a Graduate Diploma of Financial Planning.

The post Perpetual Investments appoints George Moromalos as Head of Research and Consultant Relationships appeared first on AdviserVoice.

Perpetual’s IPO indicative of the strong demand for cross border trustee services.

The Initial Public Offer (IPO) of the Frasers Hospitality Trust in Singapore on Monday was indicative of the strong demand for cross border trustee services in the region, according to Perpetual.

Listed on the Singapore Stock Exchange on 14 July 2014, Perpetual Corporate Trust is the trustee for the newly listed Singapore real estate investment trust (REIT) and also trustee for the assets that the REIT holds in Australia – the Novotel Rockford Darling Harbour and Frasers Suites, Sydney.

Frasers Hospitality Trust holds hotels and serviced residences in Singapore and across the region and raised S$365.2million. The REIT also has a right of first refusal to purchase six further hospitality assets in Australia including Sofitel Sydney Wentworth, InterContinental, Adelaide, Hyatt Hotel Canberra, Fraser Place Melbourne, Capri by Fraser, Brisbane and Fraser Suites Perth.

“Singapore continues to grow as a major regional hub for REITs,” said Andrew Cannane, Perpetual’s General Manager Corporate Clients. “We continue to experience strong demand for our Singapore trustee services as well as trustee services for cross-border transactions incorporating Australian assets.”

Mr Cannane said Perpetual is currently working on a number of other S-REIT mandates that may list in the remainder of this calendar year.

The IPO of the Frasers Hospitality Trust further boosts the thriving Singapore IPO market, with a recent APREA report, sponsored by Perpetual, naming Singapore as one of the top two REIT markets in Asia Pacific due to its strong regulatory framework, reporting, valuation guidelines and governance in relation to related party transactions.

“Perpetual’s expansion into Singapore, following the acquisition of The Trust Company, means we are uniquely placed as the only trustee with licences in Singapore and Australia. Therefore we are able to provide our expertise in both markets and facilitate cross-border transactions between the two regional neighbours,” Mr Cannane said.

“With the pilot of the Asian Regional Funds Passport set to commence in January 2016, we expect to see cross-border flows continue to grow and we will be well placed to help clients across Australia and Singapore take advantage of this emerging regional collaboration,” he said.

The post Perpetual taps into growing Singapore IPO market appeared first on AdviserVoice.

Mr O’Dea will join Perpetual Investments in late May from JANA where he is currently Head of Investment, Implemented Consulting.

Having spent 13 years at JANA, Mr O’Dea brings to the role deep experience in investment and implemented consulting, multi manager search and selection and strategic and dynamic asset allocation.

Michael Gordon, Group Executive Perpetual Investments, said Mr O’Dea’s client focus and proven investment abilities make him the right choice for the role.

“Michael is an experienced investment professional with a strong track record in asset allocation and investment management.

“With his broad range of skills and expertise, Michael is well placed to lead the team, meet client objectives and achieve further growth for Perpetual,” Mr Gordon said.

Mr O’Dea will be responsible for leading the team’s wholesale balanced, diversified and conservative growth strategies, with a focus on delivering client centric products and capabilities and FUM growth. Perpetual currently has $3.0 billion of FUM in Diversified Strategies*.

Prior to his role as Head of Investment, Implemented Consulting at JANA, Mr O’Dea held a number of positions at JANA including: Principal, Alternative Investment Solutions; Consultant and Head of Absolute Return Research Team and Research Associate (Alternatives and Global Equities).

The post Perpetual Investments hires Head of Diversified Strategies appeared first on AdviserVoice.

The new credit analyst position has been created to support the growing capability of the team which currently manages $5.2 billion in fixed income assets (as at 31 December 2013).

Ms Moal brings to Perpetual Investments more than 15 years’ experience in analytical, research and origination roles within the credit and fixed income market. She joins the team from the Global Markets division of Deutsche Bank where she spent 10 years, most recently as a Director focusing on origination and underwriting of sub-investment grade debt.

Michael Korber, Head of Credit and Fixed Income, Perpetual Investments, said Ms Moal’s extensive experience will complement and broaden the team’s credit specialist capability.

“We are delighted to welcome Anne to the team,” Mr Korber said.

“Anne has a wealth of experience in credit markets and having a team member 100 per cent research focussed will allow us to broaden our coverage of securities. Furthermore, with Anne joining us we will be exploring a range of higher yielding income and investment grade opportunities.

“Net inflows into the credit and fixed income funds have been accelerating, which has provided us with an opportunity to recruit skilled individuals such as Anne to add to the team’s overall capability.”

Ms Moal holds a Master in Management from Rouen Business School (France) majoring in finance and is a graduate of the Australian Institute of Company Directors. Prior to her tenure at Deutsche Bank, she also held roles with Bankers Trust International, Banque Nationale de Paris and Credit Lyonnais in London.

The post Anne Moal joins Perpetual Investments’ credit and fixed income team appeared first on AdviserVoice.

Perpetual Investments Direct Equity Alpha Portfolio is now available to all financial advisers that access the HUB24 platform.

Commenting on the announcement, Mr Entwistle said the addition of the Perpetual Investments SMA brings to over 150 the total number of SMA/Managed Portfolios on the HUB24 investment and superannuation platform managed by 45 investment managers, asset consultants and dealer groups. This represents the largest menu of Managed Portfolios available on any platform in Australia.

This is in addition to the more than 800 wholesale managed funds, 1,000 listed securities, and multiple term deposit and insurance options, including the recently added AIA retail life insurance products.

“HUB24’s market leading SMA/Managed Portfolio functionality, provides financial advisers with a unique product alternative, offering significant cost and tax efficiencies over traditional managed fund solutions,” said Mr Entwistle.

“It also provides asset consultants and fund managers such as Perpetual Investments with a new channel to distribute their services, while allowing them to manage the protection of intellectual property.”

HUB24 was established by a team with a long heritage of technology innovation within financial services, and represents state of the art platform development. The solution offers a comprehensive range of investment options across superannuation and investment, superior transaction and reporting, and is suitable for all types of investors – individuals, companies, trusts, associations or self-managed super funds.

Mr Entwistle, added, “We are delighted that a fund manager of the calibre of Perpetual Investments has selected HUB24 to host their SMA. This underscores our great result in the recent Investment Trends platform report, ranking us in the top tier of platforms, and foremost for innovation.”

“To ensure HUB24 maintains its marketplace advantage and position, we plan to roll out several new enhancements and initiatives over the remainder of 2013.”

The post HUB24 Platform adds Perpetual SMA appeared first on AdviserVoice.