Perpetual mounts buy-back
Perpetual Limited has struggled amid volatile markets announcing a 31 per cent decline in net profit after tax for the year ended 30 June to $62.031 million.
Despite the decline, Perpetual rewarded shareholders with a dividend of 90 cents, fully franked.
Announcing the result to the Australian Securities Exchange (ASX) today Perpetual also announced that intended to proceed with a $70 million off-market share buy-back.
Commenting on the result, Perpetual managing director and chief executive, Chris Ryan said investment sentiment had remained subdued through the financial year and had not been helped by the significant market volatility triggered by credit concerns around the world.
"Inevitably, this has put a damper on flows in the Australian funds and wealth management industry, as well as restricting activity in segments targeted by our corporate trust business," he said.
Drilling down on the company's operations, Ryan pointed to the Private Wealth business and said the diversification of revenue streams had continued with 32 per cent of revenues now not market-linked dut to higher activity levels in estate administration, tax and accounting.
He said Private Wealth's average funds under administration was $8.7 billion which was seven per cent higher than the previous year.
Ryan said that although outflows had increased, this was largely offset by an increase in inflows including a full-year contribution from Grosvenor and Fordham.
AUTHOR
Mike Taylor
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
