The Perpetual Limited (ASX: PPT) share price is trading lower today after the company released its quarterly report for the period ending 30 September. At the time of writing, the Perpetual share price is trading 1.44% lower at $30.08.
What Perpetual does
Founded in 1885 by Australia’s first prime minister Edmund Barton, Perpetual is a company steeped in history. Today, the diversified financial services company comprises four main businesses. These include Perpetual Investment, Perpetual Private, Corporate Trusts and Group Support Services.
First quarter update
The Perpetual share price is sliding today as the company released its first quarter business update. The drop comes despite Perpetual reporting a small increase in its assets under management (AUM) to $29 billion. This is a result of positive net inflows.
Furthermore, Perpetual’s launch of new funds in Australia is attracting strong interest and early inflows.
Regarding its Corporate Trust Funds, Perpetual’s funds under administration came in at $927.8 billion, down 1% on the last quarter. However, the funds continue to win new businesses, with an improving pipeline in debt market services.
Perpetual remains well-capitalised with increased financial flexibility after raising $275 million of new equity in late August.
What now for the Perpetual share price?
The company’s Barrow Hanley acquisition is on track for completion by 30 November. Perpetual CEO and managing director, Rob Adams, spoke about its integration into the company and the opportunities it presents:
In recognition of the importance of growth outside of Australia from 1H21, Perpetual will introduce a new business segment, ‘Perpetual International Asset Management’ which will include the operations of Trillium and Barrow Hanley and will be led by David Lane, Group Executive International Asset Management, reporting to Rob Adams. The new segment is expected to represent 29% of the group’s operating revenue and between 27-29% of cost base in FY21.
The Perpetual share price is trading 26% lower so far this year and shareholders will be hoping the acquisition can spur the stock back into positive territory.
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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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