Perpetual Limited · ASX:PPT
Perpetual — Investor Day (December 2021)
88 slides from Perpetual's investor day presentation, Dec 9, 2021
Slide 1: Investor Day Presentation (ASX cover letter)
Perpetual Limited ABN 86 000 431 827 Angel Place, Level 18, 123 Pitt Street Sydney NSW 2000 9 December 2021 Australia Phone +61 9229 9000 ASX Limited www.perpetual.com.au ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 Via electronic lodgment Investor Day Presentatio
Slide 2: 2021 Investor Day
Perpetual Limited (ASX:PPT) 2021 Investor Day 9 December 2021
Slide 3: Agenda
Agenda Page Welcome & Introduction Susie Reinhardt Head of Investor Relations Strategy Update Rob Adams CEO & Managing Director 3 Perpetual Corporate Trust Richard McCarthy Group Executive, PCT 15 Perpetual Private Mark Smith Group Executive, PP 34 Perpetual Asset Management Australia Amanda Gillesp
Slide 4: Rob Adams
Rob Adams Chief Executive Officer & Managing Director
Slide 5: A high-quality business investing in future growth
A high-quality business investing in future growth Execution of strategy delivering new opportunities Strategy to build a global asset management business, adding new investment and distribution capabilities, is being executed and delivering results Growing contribution from transformational acquisi
Slide 6: Unique combination of businesses
Unique combination of businesses Acquisitions delivering diversified revenue and broader array of growth opportunities FY19 Operating Revenue1 FY21 Operating Revenue1,2 $514m $641m PCT Managed Funds Services PCT Managed Funds Services 10% 10% Perpetual Asset Management Australia PCT Debt Markets Ser
Slide 7: Strong system growth across our core markets
Strong system growth across our core financial services markets Global AUM1 and ESG AUM2 (US$tr) $1m+ Australian wealth segment v Australian Managed Funds4 and (2020 – 2025F) financial adviser #’s3 (2018 – 2026F) Housing market5 (2016 – 2021) $136tr $3,000 25 $9.1tr c.6% $103tr $2,500 CAGR 20 $53tr
Slide 8: A strategy delivering sustained growth
A strategy delivering sustained growth OUR STRATEGY OUR PURPOSE OUR VISION OUR VALUES Enduring prosperity Most trusted in financial services Excellence, integrity, partnership Clients People Shareholders Trusted brand and Attract, develop and inspire Delivering sustainable enduring relationships the
Slide 9: Strong progress against our strategic priorities
Strong progress against our strategic priorities $75b growth in assets under management, $3.6b growth in funds under advice and $185b growth in funds under administration1 2019: What we said we would do2 Deepen our client relationships Promote a culture of innovation Embed digital solutions in how I
Slide 10: Execution of strategy delivering positive momentum
Execution of strategy delivering positive momentum $101b +44 NPS No. 1 6 40+ Assets Under Strong client Zenith Fund Transformational New product Management1 advocacy2 Manager of the acquisitions delivering capabilities and Year3 new capabilities, scale services5 and growth4 Perpetual Asset Managemen
Slide 11: Trillium and Barrow Hanley well positioned for growth
Trillium and Barrow Hanley well positioned for growth Investment performance and improved distribution focus delivering results Number of strategies outperforming Quarterly Net Flows3 (US$m) benchmark1,2 156 169 144 100% 83% 40 50% (19) Q1 Q2 Q3 Q4 Q1 1Yr 3Yrs 5Yrs FY21 FY22 Equities 93% 92% (227) 9
Slide 12: Expansion of capabilities creating capacity
Expansion of capabilities creating significant capacity for future growth Perpetual AUM Capacity1 (A$b) AUM2 Total Capacity c.$410 c.$120 c.$70 $98 $1012 (as at 30 Sep 21) $27 $28 FY19 FY20 FY21 FY22+ Leading domestic asset management Acquisition of Trillium delivering Acquisition of Barrow Ha
Slide 13: Leveraging ESG strengths to build further scale
Leveraging ESG strengths to build further scale Acquisitions building deeper capability and growing proportion of specialist ESG AUM Perpetual Asset Management International • Trillium unrivalled 39 years of impact driven investing now delivering record net flows in AUM5 by capability approach6 FY21
Slide 14: Enduring prosperity for our clients, people, communities
Enduring prosperity for our clients, people, communities and environment Corporate sustainability strategy to be launched in 2022 Clients People Communities Environment +44 Diversity and $612,000 Net Zero Asset Net Promoter Score1 in FY21, Inclusion Strategy Raised in FY21 for a range of charities M
Slide 15: Continued execution of our strategy in FY22
Continued execution of our strategy in FY22 Client first Future fit New horizons Exceptional products Empowering our people New capabilities Outstanding service to deliver high performance Global footprint Continue to build-out our global distribution team and global product framework across US, UK,
Slide 16: Richard McCarthy
Richard McCarthy Group Executive, Perpetual Corporate Trust
Slide 17: Perpetual Corporate Trust
Perpetual Corporate Trust Vision to be the most trusted fiduciary and the leading digital solutions provider to the financial services industry $63.8m 10% CAGR $964b +58 NPS 20+ Underlying profit before Consistent growth in in funds Strong client advocacy Years investing and tax for FY21 UPBT over t
Slide 18: Market leading and scalable services
Market leading and scalable services PCT provides the critical infrastructure …with broad service offering across the financial services ecosystem… supporting significant volume Regulators 1,200,000 # payments processed annually Institutional Capital Clients Markets Money $387b Value of annual payme
Slide 19: Building a future fit business
Building a future fit business to support new service offerings Continuing to innovate to enable clients’ success Managed Funds Debt Market Digital Solutions Solutions Solutions FUA $359b1 FUA $605b1 AUA $3.6t1 Delivering fiduciary, agency, custody and Supporting a diverse client base ranging Enabli
Slide 20: A high-quality business that continues to deliver strong earnings
A high-quality business that continues to deliver strong earnings Service excellence, product innovation and M&A driving profitable growth Revenue Profile ($m)1,2 UPBT Profile ($m)3 $160 $140 $70 $120 $60 c.12% c.15% $100 $50 $80 $40 $60 $30 $40 $20 $20 $10 $0 $0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 F
Slide 21: Managed Funds Solutions
Managed Funds Solutions1 (MFS) Growing, high-quality client base with long tenure Key statistics YoY revenue growth ($m)3 $70 Funds Under Administration Clients A$359b2 350+ $60 $50 23% CAGR FY21 Revenue Trusts $40 $59.8m 716+ $30 $20 $10 $- Drivers of growth FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Slide 22: Managed Funds Solutions
Managed Funds Solutions High tenure of quality clients and a growing client base Managed Funds Solutions comprise of wholesale trustee, custody and responsible entity services, plus product extensions Investment Management, Accounting and Fordham Accounting 21
Slide 23: Debt Markets Solutions
Debt Markets Solutions (DMS) Trustee for >$580b providing a broad range of debt markets solutions for our clients Key statistics YoY revenue growth ($m) Funds Under Administration Clients $80 A$605b1 2573 $70 $60 7% CAGR $50 FY21 Revenue Trusts $40 $75m2 5704 $30 $20 $10 $- Drivers of growth FY12 FY
Slide 24: Debt Markets and Data & Analytics Solutions
Debt Markets Solutions and Data & Analytics Solutions Strong activity in non-bank sector driving growth Bank Two transactions One transaction One transaction One transaction One transaction $2b $1b $300m $1b $1b Non-Bank Three transactions One transaction One transaction Two transactions Four transa
Slide 25: Significant technology challenges in financial services
Significant technology challenges in financial services industry Perpetual Digital is the solution to these challenges Replacing legacy technology Increasing regulatory & cyber risk Legacy technology requires grown cost, resources The cost of meeting new regulatory requirements and time to manag
Slide 26: Our digital journey
Our digital journey Continued innovation and acquisitions provide a unique opportunity to become a leading digital solutions provider Launched Treasury & Finance Intelligence Industry insights & Launched Investor Launched ESMA benchmarking & Market Intelligence Reporting Developed Credit Developed T
Slide 27: Product innovation and acquisitions driving growth
Product innovation and acquisitions delivering double digit revenue growth for Digital Solutions YoY Revenue Growth ($m) Perpetual $14 Data Services $12 $10 $8 Perpetual $6 Roundtables $4 $2 Perpetual $- FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Intelligence New product launches Roundtables
Slide 28: Perpetual Digital
Perpetual Digital Provides a unique suite of digital solutions to enable clients manage their technology challenges Perpetual Perpetual Perpetual Laminar Data Services Roundtables Intelligence Capital >$500b1 AUA $2.8t2 AUA $320b3 AUA $21b4 AUA Australian Data Warehouse Benchmarking and Insights Pla
Slide 29: Perpetual Roundtables
Perpetual Roundtables – peer-to-peer forums Enable strategic decision making by senior managers in banking and financial services Commercial lending Total Loan Outstandings ($b) Benchmarked by Country $2,900 $2,700 Credit cards $488 ~$2.8t $2,500 $451 $436 $2,300 Mortgages $2,100 of balance sheet as
Slide 30: Treasury and Finance Intelligence
Treasury and Finance Intelligence (TFI) Digitally enabling the automation of trust management, funding optimisation and improving the investor experience Trust management Funding optimisation RBA reporting IFRS 9 loss cashflow / waterfall / pool selection analytics provisioning Purpose built; A/NZ
Slide 31: Treasury and Finance Intelligence demonstration video
Treasury and Finance Intelligence – demonstration video https://www.youtube.com/watch?v=kl06MEmUwqA 30
Slide 32: Early adopters of Perpetual Intelligence
Early adopters of Perpetual Intelligence Investor and Market Intelligence Credit and Risk Intelligence Treasury and Finance Intelligence Unique data set $320b mortgages Digitise stress testing processes to improve Automated end-to-end portfolio funding Automate deal analysis & support credit portfol
Slide 33: Laminar Capital
Laminar Capital Portfolio management and investment made simple Simple yet powerful online Transact, manage and report on investment management software investment portfolios easily with Treasury Direct Treasury Direct Digital Platform and Services • Fixed income broking, domestic • Asset and mortga
Slide 34: Perpetual Corporate Trust: Summary and future focus
Perpetual Corporate Trust: Summary and future focus High-quality and Strong client Positive growth Investing in Actively Pipeline of market leading advocacy and across all aspects new digital developing M&A business trusted brand of the business capabilities new products opportunities 33
Slide 35: Mark Smith
Mark Smith Group Executive, Perpetual Private
Slide 36: Perpetual Private
Perpetual Private One of Australia’s most respected advisory services business focused on the comprehensive needs of families, businesses and communities $183.8m $18.5b $35m 8 $3.6b Specialisation FY21 revenue Funds FY21 underlying Consecutive years One of Australia’s 80 Advisers under advice1 profi
Slide 37: Specialised Segment Model
Specialised Segment Model that provides services across a client’s end- to-end wealth journey Business Owners HNW Families Private Client Families Ultra High Net Worth Not for Profit Native Title Compensation Services: • Holistic Financial Advice Professionals • Specialist Risk Advisory • Philanthro
Slide 38: Trusted partner in community and social segment
Trusted partner in community and social segment Not for Profit Philanthropy Native Title $354 billion1 68%2 1214 In assets held by charities Australians donate money Charitable trusts $166 billion1 $11.2 billion1 $1.2-1.6 billion4 Combined charities total Donated in FY19 Estimated funds in trust rev
Slide 39: Specialisation results in a differentiated client experience
Specialisation results in a differentiated client experience – client video https://www.youtube.com/watch?v=zRdDp5gC2Z0 38
Slide 40: Strategy focused on the fastest growing wealth segments
Strategy focused on the fastest growing wealth segments Growth in household wealth The $500k - $1m sector of households are $1m + sector currently growing at the fastest rate by supported by rising super balances shifting rapidly into the $1m + sector as a result number of households and investable
Slide 41: Significant supply gap is forming
Significant supply gap is forming which plays to our growth strategy • Whilst the growing wealth of households will increase the demand for advice, the declining number of advisers is creating a significant supply gap. • The total number of advisers is expected to continue to decrease over the next
Slide 42: Our strategy continues to deliver growth
Our strategy continues to deliver growth Focused segment growth driving 8 consecutive years of positive flows NPS reiterating our focus on client record FUA Net flows, $b Funds under advice, $b Private Clients NPS growth through 18.5 Professional Service Program 0.8 17.0 62 14.8 0.6 52 14.1 14.3 51
Slide 43: Jacaranda acquisition integration on track
Jacaranda acquisition integration on track Enabling Perpetual Private to deliver new capabilities to markets and segments Acquired by Perpetual Now exceeds $1 billion Significant demand for Successfully completed East coast expansion in August 2021 with $932 funds under advice1 services (connection
Slide 44: Perpetual Private: Summary and future focus
Perpetual Private: Summary and future focus High-quality and Strong segment Continuing to Consistent Active pipeline market leading focus and invest in growth and of M&A business development of expanding positive opportunities capabilities segmentation momentum specialisation in family office and pr
Slide 45: Amanda Gillespie
Amanda Gillespie Group Executive, Perpetual Asset Management Australia
Slide 46: Perpetual Asset Management Australia
Perpetual Asset Management Australia One of Australia’s most respected and longstanding active managers with over 50 years experience $25.5b $42.2m No. 1 50+ ASX:GIVE Newly launched 25+ Assets Under FY21 Underlying Zenith Fund Years of Specialist Management1 profit before tax2 Manager of the asset m
Slide 47: Delivering world-class capabilities to investors
Delivering world-class capabilities to investors Supported by a trusted brand and industry leading distribution Australian Multi Asset Credit and Fixed Global Equities Income Innovation Fund • One of Australia’s largest • Investing across a diverse • Offering a range of cash, • Hand-picked portfolio
Slide 48: Solid performance across majority of funds
Solid performance across majority of funds Delivering strong performance and outcomes for clients AUM as at 30 September 2021 ($b) $0.9 Perpetual Diversified Real Return Fund winner at the 2021 Zenith Fund Awards3 $8.8 Perpetual Share Plus Long Short Fund winner at the 2021 Zenith Fund Awards3 $14.0
Slide 49: Contemporary investment solutions
Contemporary investment solutions Client led solutions which leverage our investment expertise • Focused on developing solutions which meet client needs across multiple channels • Tapping into secular demand around income, retirement & ESG and desire for easy access to investment capabilities • Buil
Slide 50: Industry-leading brand and capabilities
Industry-leading brand and capabilities Renewed investment in our brand and core capabilities Perpetual Diversified Income Fund Focused on showcasing our specialist credit capability and in particular, the Perpetual Diversified Income Fund – in market earlier this Contributing year. to +$360m Highli
Slide 51: Global equities
Global equities Bringing a diverse global equities offering to the Australian market • Global acquisitions have added unique global equities capabilities • Now coming to market with a diverse global equities offering across global innovation, value and ESG • Renewed interest and flows from clients i
Slide 52: Accelerating the development of our ESG capability
Accelerating the development of our ESG capability Building on our longstanding commitment to ESG with solutions across asset classes 2002 2009 2013 2018 2020 2021 Launch of the Signatory to the Annual disclosure Launch of the Launch of the Trillium Launch of the Multi Perpetual Ethical United Natio
Slide 53: Perpetual Asset Management Australia: Summary and future focus
Perpetual Asset Management Australia: Summary and future focus Delivering world-class capabilities to investors supported by a trusted brand and industry leading distribution Delivering strong Renewed investment Contemporary client- New capabilities Accelerating our performance and in brand and core
Slide 54: David Lane
David Lane Group Executive, Perpetual Asset Management International
Slide 55: Perpetual Asset Management International
Perpetual Asset Management International A global asset management business growing in all key financial regions $75.5b $40.7m $330b+ 40+ 35+ 81+ Assets Under FY21 Underlying total AUM capacity Years of Specialist Growing global Management1 profit before tax2 across Trillium and asset management inv
Slide 56: Barrow Hanley and Trillium
Barrow Hanley and Trillium Investment bringing transformational opportunities and strong growth horizons Where we are going Where we are today • Relevant product structures across all key regions • The Barrow Hanley distribution team has been repointed to Head of • Supported by expansion of our Dist
Slide 57: A growing business with strong ESG and value-focused strategies
A growing business with strong ESG and value-focused strategies Delivering growth and strong performance AUM at 30 Sep 21 AUM Composition2 Performance (to 30 Sep 21)6 US$6.0b1 US Equities Global 100% Equities 83% Strong performance and $4.1 $1.8 increasing investor demand for Growth since 50% authen
Slide 58: ESG capability that continues to grow
ESG capability that continues to grow Responsible investing and shareholder advocacy driving meaningful results 2009 2018 Trillium’s advocacy 2016 Barrow Hanley representation on PRI 1982 1984 1995 2007 results in SEC reversal in policy Barrow Hanley becomes signatory to committees focusing on oil a
Slide 59: Product development a client-centric process
Product development a client-centric process USA EMEA3 Asia Pacific • Establishment of Registered Investment • UCITS4 establishment of a European umbrella • Launched a suite of new and contemporary Adviser completed in November 2021 and two fund underway with the first three funds products into Aust
Slide 60: Barrow Hanley and Trillium Investment Team - video
Barrow Hanley and Trillium Investment Team - video https://www.youtube.com/watch?v=5JixzXPO29g 59
Slide 61: Perpetual Asset Management International: Summary and future focus
Perpetual Asset Management International: Summary and future focus Building world-class investment and distribution capabilities Maintaining New capabilities Implementing Seeking out Continue to grow investment within existing product plan globally acquisitions with a global distribution autonomy wh
Slide 62: Adam Quaife
Adam Quaife Executive General Manager, Distribution
Slide 63: Global distribution
Global distribution A growing presence in all key regions Multiple world- 81+ Focused sales team Strengthened capability 12,000+ class investment Growing global Active advisers in capabilities distribution team driving material to support domestic Australia across US, opportunities institutional and
Slide 64: Global distribution
Global distribution Diversifying the business by investment capability, geography, client type and channel AUM by asset class1 AUM by channel1 AUM by client geography 1 Retail Other 1% Australian Listed investment vehicles 5% EMEA (incl Bermuda), 6% Fixed equities 1% Asia income 14% 6% 21% Intermedi
Slide 65: Addressable market growing across all key regions
Addressable market growing across all key regions Global AUM exceeded $100 trillion in 20201 Global AUM ($b) North America Europe Japan and Australia 12% 7% 48.6 11% 43.2 10% 6% 11% 7% 25.7 6% 22.1 23.5 103.1 13.5 4.3 7.7 8.5 92.7 2009 2019 2020 2009 2019 2020 2009 2019 2020 45.6 Latin America Middl
Slide 66: Megatrends that are shaping our distribution strategy
Megatrends that are shaping our distribution strategy Continued flows into Asset Management The rise of ESG Global AUM ($US) ESG AUM ($US) (2020 – 2025e)1 • Global asset management industry • 75% of global investors use active funds (2020 – 2025e)2 $136tr in a position of strength with $103tr to int
Slide 67: Barrow Hanley and Trillium – Focus for growth
Barrow Hanley and Trillium – Focus for growth Current focus Current focus Hired institutional business development and client portfolio management to develop Building capabilities that enhance opportunities with global institutional investors consultant channel Delivering scale through targeti
Slide 68: Investment in world-class distribution leadership
Investment in world-class distribution leadership1 USA Chuck Thompson Head of Distribution and Strategy Americas Joined 2019 Europe Jan Hein Alfrink (Perpetual) USA Head of Institutional Business, Europe Ann-Therese O’Neil (Barrow Hanley) Joined Amsterdam office in 2021 Head of Institutional-America
Slide 69: Global distribution: summary and future focus
Global distribution: summary and future focus World-class distribution leadership now in place to drive growth in FY22 Continue to build out Drive flows into Client first: global It’s all about the global distribution contemporary solutions approach, with local partnerships platform whilst capabilit
Slide 70: Chuck Thompson
Chuck Thompson Head of Distribution & Corporate Strategy - Americas
Slide 71: Building a world-class distribution capability in North America
Building a world-class distribution capability in North America Expand Scale Prioritise key strategies Drive efficiencies Deliver client and flow Focus resources, financial Identify and prioritise Outsource and centralise diversification, improving and human, to increase investment strategies with r
Slide 72: Americas foundation and distribution leadership in place
Americas foundation and distribution leadership in place Chicago Boston Established in 1982 Portland San Francisco Established in 1979 Honolulu Established in the Dallas US in 2021 71
Slide 73: Overview of US market
Overview of US market Distribution channel breakdown Distribution Channel, AUM US$b 0 4,000 8,000 Direct/Institutional Active Broker/Dealer RIA ETFs Online Wirehouse Passive Private Bank Bank Trust Co. Other Intermediary Targeting high value channels as part of our distribution plan for both Trilliu
Slide 74: Outlook and future opportunity
Outlook and future opportunity Well positioned in high demand channels Exchange-traded funds (ETFs) 77% 8% 15% Institutional separate accounts 75% 20% 5% Open-end mutual funds 64% 36% UCITS 63% 32% 5% Model-delivered separate accounts 50% 50% Funds of funds and/or multimanager funds 46% 31% 23% Coll
Slide 75: The opportunity in International Equities – a case study
The opportunity in International Equities – a case study The market opportunity (Non-US equities) Our capabilities in International Equities (Non-US equities)2 Institutional Assets Under Management (US$b)1 Barrow Hanley International Equities Funds – Performance relative to benchmarks (%)3,4 40.0 %
Slide 76: Summary and future focus
Summary and future focus Strong performance Best-in-class Strong results in net Investing in new in Core ESG Equity, distribution senior flows for ESG and channels and performance of leadership team in reversing outflows distribution value rebounding place on value equities intelligence and technolo
Slide 77: Rob Adams
Rob Adams Chief Executive Officer & Managing Director
Slide 78: Focused on future growth across all divisions
Focused on future growth across all divisions Perpetual Asset - Expand range of listed vehicles and - Accelerate the build-out of global Perpetual Asset other contemporary channels Management distribution team Management International - Open up new channels and geographies Australia - Stronger focus
Slide 79: Why invest in Perpetual
Why invest in Perpetual Unique Trusted brand Experienced Disciplined Strong Clear strategy portfolio of and strong management investment in balance sheet for growth businesses heritage and executive quality growth and financial team opportunities flexibility 78
Slide 80: Questions
Questions Trust is earned. Perpetu of
Slide 81: Thank you.
Trust is earned. Perpetu of
Slide 82: Contacts
Contacts Emma Rumble Susie Reinhardt General Manager, Corporate Affairs Head of Investor Relations & Investor Relations emma.rumble@perpetual.com.au susie.reinhardt@perpetual.com.au +612 9229 3998 +61 401 399 781 Connect with us at: About Perpetual Head Office perpetual.com.au Level 18, Angel Place,
Slide 83: Disclaimer
Disclaimer Important information Asset Management or Barrow Hanley Global Investors, should be considered before deciding whether to acquire or hold units in a fund or strategy. The applicable PDS, and Target Market Determination, can be obtained by This presentation has been prepared by Perpetual L
Slide 84: Appendix
Appendix Trust is earned. Perpetu of
Slide 85: Perpetual Executive Committee
Perpetual Executive Committee Complementary skillsets focused on execution of growth strategy Rob Adams Chris Green Managing Director and Chief Chief Financial Officer Executive Officer Joined: 2006 Joined: 2018 Amanda Gazal Amanda Gillespie David Lane Chief Operating Officer Group Executive, Perpet
Slide 86: Australian Equities performance against benchmark
Excess returns above benchmark Below benchmark returns PAMA performance against benchmark Annualised net perform ance Excess returns above benchm ark 30 Septem ber 2021 (%) 1 30 Septem ber 2021 (%)1 Fund Benchm ark 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr Perpetual W Australian
Slide 87: PAMI performance against benchmark
Excess returns above benchmark Below benchmark returns PAMI performance against benchmark Barrow Hanley 30 September 2021 Performance against benchmark Annualised performance Excess returns above benchmark 30 September 2021 (%) Period ended 30 September 2021 (%) Benchmark AUM 3 mth 1 yr 3 yr 5 yr 3
Slide 88: GIPS Composite Report
GIPS® COMPOSITE REPORT BARROW HANLEY Non-U.S. Value Equity Composite Barrow Hanley Global Investors ("BH") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. BH has been independently verified f