Perpetual's star stock-picker confirms exit

Perpetual confirmed that John Sevior will not be returning from an extended leave. Sevior, who spent 17 years at Perpetual largely as head of the equities investment team, is expected to launch his own fund next year.

Sevior was a highly rated stock-picker, and his exit has already prompted clients to pull money from Perpetual’s Australian equity funds. The loss of a star investment manager can influence fund flows, client confidence and potentially short-term performance — things investors often watch closely.

Perpetual experienced about $1.2 billion of net outflows from its Australian equity funds during the September quarter following the announcement of Sevior’s extended leave.

Matt Williams will take over as head of the equities investment team, with Charlie Lanchester as deputy. Williams had been filling in since Sevior took leave in July.

Reports indicate Sevior is expected to start a new fund next year and is reportedly backed by Treasury Group, though Perpetual only confirmed he will not return from leave.

Perpetual restructured its sales arm by creating a specialist team to handle the needs of its biggest customers — the large financial planning groups that recommend its products — aiming to strengthen a previously weaker part of its distribution model.

Perpetual’s shares closed at $20.21, and the stock was up on the day the company confirmed Sevior would not return from leave.

Everyday investors should watch fund flows and the performance of Perpetual’s Australian equity funds, how the new leadership (Matt Williams and Charlie Lanchester) performs, any further client redemptions, and whether the sales restructuring improves distribution. Monitoring company updates and quarterly reporting will provide clearer signals over time.