Latest Barrow Hanley News
Aug 19, 2021
Pre-tax profit ($m) 106.7, down 8.5pc Net profit ($m) 74.9, down 8.7pc Final dividend (¢) 96 v 50 Date dividend payable: September 24 Perpetual has recorded solid inflows from its ethical investment specialist acquisition Trillium which helped offset continued outflows in its flagship value investment arm in Australia and from its value-focused US bolt-on Barrow Hanley. Perpetual knocked up a 26 per cent increase in underlying profit to $124 million for the year through June, thanks to increased assets under management following its takeover of US-based investment group Barrow Hanley and Trillium Asset Management. Perpetual chief executive Rob Adams is betting on acquisitions for growth. Peter Braig The ASX-listed equities specialist exploded in size over the year, transforming itself from a largely Australian focused asset manager with $28 billion under management to a global firm with almost $100 billion in the kitty. Statutory profit fell 9 per cent to $75 million, impacted by one-off acquisition costs. The fall came despite a 33 per cent increase in revenue to $652 million. Although there was improved relative performance of the funds in Perpetual’s flagship Australian division, the local operations booked a 5 per cent drop in revenue and a 4 per cent drop in underlying profit thanks in part to net outflows and fee cuts. Related Quotes Advertisement The company’s local arm booked a 4 per cent increase in assets under administration at the end of June compared to the March quarter, thanks mainly to rising market valuation at a time when net flows into the division were “marginally positive”. That came as institutional investors piled into the multi-asset offerings. However, this was offset by continued outflows from its flagship Australian equities division. “While it has been disappointing to see continued net outflows during the year, it was encouraging to see positive net flows in the final quarter,” chief executive Rob Adams said. Dividend boost Perpetual will pay a 96 cent a share dividend, bringing the year’s total distribution to $1.80, up 16 per cent on the previous year. The group’s international division, housing its Trillium and Barrow Hanley acquisitions, delivered a pre-tax profit of $41 million, with 92 per cent of Barrow Hanley’s equities funds and 71 per cent of its fixed income portfolios beating their benchmarks over the last year. “Our first year of Perpetual’s ownership of Trillium has been a highlight, with the business recording its highest net flows in its history,” Mr Adams said. Advertisement While Trillium recorded strong net flows, the same couldn’t be said for Barrow Hanley, which was stung by institutional redemptions from its US Equities and fix income mandates. Perpetual’s international arm booked net outflows of $3 billion during the year, with the majority coming in the second half of fiscal 2021. Last week, Perpetual continued to add to its range on bolt-on acquisitions, taking over Jacaranda Financial Planning and adding it to its Perpetual Private operations, where underlying profit rose 8 per cent to $35 million during the year.