Perpetual calms researcher nerves
PerpetualInvestments has played down research house fears its new in-house international equities arm will be a significant departure from the way the asset class has been managed to date through its outsourced arrangement with Fidelity Investments.
According to Perpetual chief investment officer Emilio Gonzalez, both Fidelity and the four-man Bank of Ireland Asset Management (BIAM) team — who will form the backbone of the new Perpetual Global Equities business — have a number of similarities despite market perception of being at opposing ends of the style spectrum.
“If you look at the portfolio characteristics of what we currently have with what we will potentially have, there’s not a lot of difference there,” Gonzalez says.
Research houses Lonsec and Morningstar voiced concern last week as to how the changes would impact on the underlying style and process of managing the group’s $2.2 billion in international equities.
“Clearly, there are differences in that Fidelity is managed on a regional basis where portfolios are merged to form a global group of stocks,” Gonzalez says.
“However, both managers are bottom-up stock pickers that pride themselves on seeking quality first and value second.”
Perpetual Investments managing director Gerard Doherty, meanwhile, is more than happy with the agreement struck with the BIAM team in Dublin, despite the $28 million share incentive the group will pay.
“It’s a good deal for us, as we think it’s a natural fit. They have a very similar style to the way we manage money,” Doherty says.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
