Perpetual reports turnaround
Chief executive officer Geoff Lloyd said guidance that December-half underlying profit would fall between $45 million and $50 million reflected the "underlying improvement we have made to the business", together with the benefits of stronger equity markets.
The company's profits depend on how the Australian equities market performs.
According to its last results, a 1 per cent movement in the market changes its annualised revenue by up to $2.25 million.
Speaking at the company's annual meeting, chairman Peter Scott reported net inflows of $200 million at Perpetual Investments in the September quarter.
"This is a pleasing development and is something we haven't seen for a few years now," he told shareholders.
Net outflows for Perpetual Investments were $1.8 billion in 2013, an improvement on the $4.1 billion of 2012.
But Mr Scott cautioned that conditions remained "challenging", with increased regulatory change, continued volatility and fragile investor confidence. Perpetual said it was 75 per cent through its "Transformation 2015" turnaround and cost-cutting program, and expressed hope that it would nab its long-running takeover target Trust Co by the end of calendar 2013.
Shareholders in Trust Co - one of the few companies enjoying a bidding war through 2013 - will vote on the takeover in late November.
Meanwhile, Westpac's fund management business, BT Investment Management, has reported that confidence has returned to the market, due to low interest rates and weakened concerns about global growth, and flagged earnings growth this financial year.
BT on Thursday reported a $51.25 million annual profit, more than double the previous year's $21 million, and in line with JPMorgan's forecast. The result was boosted by rising markets, low interest rates lifting demand for risk assets, and net inflows of $1.5 billion.
Questioned on market sentiment, chief executive Emilio Gonzalez told BusinessDay: "The market is at the right level. The next leg-up has to be earnings driven."
BT wants to tap into Australia's strong self-managed superannuation market, which tends to bypass managed funds, and launch three funds offshore: a global emerging small-cap fund, a global Sharia fund and an international small-cap strategy.
Frequently Asked Questions about this Article…
Perpetual, Australia's largest independent wealth manager, has reported a turnaround in its flagship funds management arm and forecasted an improvement in first-half profit, with underlying profit expected to fall between $45 million and $50 million.
Perpetual, Australia's biggest independent wealth manager, has reported a turnaround in its flagship funds management arm and forecasted an improvement in first-half profit, reflecting underlying business improvements and stronger equity markets.
Perpetual's profits are closely tied to the performance of the Australian equities market. A 1% movement in the market can change its annualized revenue by up to $2.25 million.
Perpetual's profits are closely tied to the performance of the Australian equities market. A 1% movement in the market can change its annualized revenue by up to $2.25 million.
Perpetual Investments reported net inflows of $200 million in the September quarter, a positive development after experiencing net outflows of $1.8 billion in 2013, which was an improvement from $4.1 billion in 2012.
Perpetual Investments reported net inflows of $200 million in the September quarter, a positive development after experiencing net outflows of $1.8 billion in 2013, which was an improvement from $4.1 billion in 2012.
Despite recent improvements, Perpetual faces challenges such as increased regulatory changes, continued market volatility, and fragile investor confidence.
Despite recent positive developments, Perpetual faces challenges such as increased regulatory changes, continued market volatility, and fragile investor confidence.
Perpetual's 'Transformation 2015' is a turnaround and cost-cutting program that is 75% complete. The company hopes to complete its long-running takeover target, Trust Co, by the end of 2013.
Perpetual is 75% through its 'Transformation 2015' turnaround and cost-cutting program, which aims to improve business efficiency and performance.
BT Investment Management reported a $51.25 million annual profit, more than double the previous year's $21 million, driven by rising markets, low interest rates, and net inflows of $1.5 billion.
The Trust Co takeover is significant for Perpetual as it has been a long-running target. Shareholders of Trust Co are expected to vote on the takeover in late November.
BT attributes the return of market confidence to low interest rates and reduced concerns about global growth, which have lifted demand for risk assets.
BT Investment Management, part of Westpac's fund management business, reported a $51.25 million annual profit, more than double the previous year's $21 million, driven by rising markets and low interest rates.
BT plans to tap into Australia's strong self-managed superannuation market and launch three funds offshore, including a global emerging small-cap fund, a global Sharia fund, and an international small-cap strategy.
BT Investment Management plans to tap into Australia's strong self-managed superannuation market and launch three funds offshore, including a global emerging small-cap fund, a global Sharia fund, and an international small-cap strategy.
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