Perpetual rules out further acquisitions

Perpetual is seeking at least two board directors as part of a board renewal process and has ruled out any further acquisitions.

Its first appointment is Phil Wagstaff as a non-executive director who will take over from UK-based Kathryn Matthews. He is also based in the UK and will join in November 2023. 

Wagstaff is a former global head of distribution at UK asset manager Jupiter Asset Management, and previously held a similar role at Janus Henderson. At both firms, he worked alongside Andrew Formica who recently joined the board of Magellan as a non-executive chair.

Perpetual chairman Tony D’Aloisio said: “We are delighted to welcome a director of Phil’s stature to the Perpetual Group board. His extensive experience in the UK and global asset management industry will complement the board’s current mix of experience and skills. 

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“In particular, Phil’s deep knowledge, experience and success in leading and overseeing global distribution teams and strategy will be invaluable to our group as we focus on driving our organic growth globally and deliver the benefits from our recent acquisitions in asset management.”

In addition to Wagstaff, D’Aloisio said the firm is seeking at least two further board appointments to replace Craig Ueland, who retired last year, and two other members who are due to retire in 2024. 

“As part of our broader renewal process, we are actively searching for replacement directors – at least two.

These changes add fresh eyes and views to the board as we drive the delivery of benefits and assess new strategic opportunities that these businesses will bring for the group.”

There have also been two new committees established this year: an integration committee and a technology and cyber security committee. 

“To formalise the board’s oversight of the integration of Pendal into our business, including the delivery of synergies, the board has established an integration committee which will be chaired by Fiona Trafford-Walker and include Nancy Fox and Christopher Jones. 

“Secondly, the board has also strengthened its oversight of Perpetual’s technology and cyber risk through the establishment of a specific technology and cyber security committee, chaired by Mona Aboelnaga Kanaan and including Ian Hammond, Fiona Trafford-Walker and Christopher Jones.”

It also noted the Pendal annualised synergies have been revised upwards from $60 million over two years to $80 million. As at 30 June, synergies are $29 million, which Perpetual said is on track for its targets by January 2025. 

However, it has ruled out any further acquisitions while the Pendal deal is being integrated. This has doubled the firm’s assets under management to over $212 billion and is one of multiple acquisitions the firm has completed over the last four years.

“We recognise that the market will generally only reward achievement and, as with Trillium and Barrow Hanley, we will need to prove through execution Pendal’s accretive value. That is our focus for the foreseeable future and we will not be looking to deploy additional shareholder capital on acquisitions.”

Chief executive Rob Adams added: “Pendal’s contribution since we completed the acquisition in January has been impacted by net outflows across a small number of capabilities, which has been disappointing. 

“However, given the quality, breadth and depth of our investment capabilities, we remain confident of returning to growth over time.

“While there is much for us to do, I firmly believe this acquisition will deliver value to our shareholders over time.”

He said Perpetual’s focus going forward is now on ensuring a coordinated global distribution focus, opening new channels and regions for its boutiques, streamlining the product structures and a new leadership structure.