Perpetual ends in-house international equities manufacture
Perpetual Limited has abandoned in-house manufacturing of its international share funds in Ireland and transferred the function to Boston-based specialist Wellington Management Company.
At the same time, the company has exited the self-managed superannuation funds (SMSFs) administration business, selling its Smartsuper offering to a Sydney-based professional services company.
The company also flagged that its full-year results would be in line with earlier guidance, and broadly in line with last year.
Announcing the moves overnight and on the Australian Securities Exchange (ASX) today, the company said the move on its international equities manufacturing had followed a review of its Dublin-based in-house international investment capabilities based on market demand, profitability and alignment to its equities business strategy.
Commenting on the move, Perpetual chief executive Chris Ryan said at an organizational level it represented a constructive change aimed at delivering value to stakeholders.
Perpetual group executive, equities, Cathy Doyle said the company had come to the view that the current manufacturing of Perpetual's international share funds had not met its business expectations.
"We have taken the decision to close the in-house manufacturing of the funds - this has also resulted in the closure of our Dublin-based international equities business, PI Investment management limited," she said.
The company's moves on its international share funds follows on from tough ratings house scrutiny of Perpetual's domestic equities options in the context of the future intentions of its equities head, John Sevoir, who is currently on 6 months leave.
AUTHOR
Mike Taylor
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