Here's why the Perpetual (ASX:PPT) share price is falling today

The Perpetual share price is sliding today as the company announced its results for the September quarter. We take a closer look.

| More on:
falling asx share price represented by woman making sad face

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »