Perpetual on borrowed time

With outflows in its investments business and margins at risk in its wealth management division, time is against Perpetual.

Recommendation
Perpetual on borrowed time
View company profile for PPT

Date 9 Nov 2018
Current Price $35.36

Buy
below
Hold
up to
Sell
above
Buy Hold Sell Meter
Max Portfolio Weighting
Business Risk
Medium-High
Share Price Risk
Medium-High

When we upgraded Perpetual five years ago, we thought we'd glimpsed the beginnings of a recovery in fund flows. Sure enough, the Investments division recorded inflows of $1.1bn in 2014 and $0.3bn in 2015, but it proved to be a false dawn, with outflows of $0.3bn in 2016, $0.9bn in 2017 and a whopping $2.5bn in 2018. The division has now suffered net fund outflows in eighteen of the past twenty-two halves.

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