Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Sandstone Insights: Perpetual's disappointed shareholders

Perpetual's announcement of positive net flows in the first quarter of 2025 was overshadowed by significant outflows in most asset classes leading to a shareholder vote rejecting the FY24 Remuneration Report.

bull Source: Adobe images
bull Source: Adobe images
Trade on the go with our mobile trading app

ASX code: PPT

Suggestion: SELL

Need to know

  • Perpetual (PPT) reported positive net flows for the first quarter of 2025 (1Q25). We note that all asset classes were in outflow except for the Managed Cash Strategy, which was carried by a large, short-dated cash mandate
  • We do not see this as a strong 1Q25 update. Dissatisfaction of shareholders is becoming more evident. We see an increasing risk of a failure at the scheme vote in early 2025
  • We reaffirm our Sell rating.

Financial performance highlights

Perpetual's attempt to boost shareholder morale by announcing positive net flows in Funds Management for the first quarter of 2025 fell flat. This was mainly because the positive figure was heavily reliant on over $2.0 billion in short-term, low-margin cash mandates. Even significant $12.7 billion in mark-to-market gains, which exceeded expectations, couldn't overshadow the company's history of poor management and deal execution.

Shareholder reaction and future concerns

This dissatisfaction was evident as about 89% of voting shareholders rejected the adoption of the fiscal year 2024 (FY24) Remuneration Report. We believe this is clearly signalling potential trouble for an upcoming scheme vote (sale of Wealth Management and Corporate Trust) in early calendar year 2025 (CY2025). In our view, it's a solid prospect that the deal doesn't go through.

The detailed performance for the first quarter of 2025 was lacklustre, with foreign exchange impacts resulting in a $5.8 billion loss, contrary to expectations.

Strategic missteps and shareholder discontent

While the Private Wealth and Corporate Trust divisions performed as anticipated, the overall results were insufficient to improve shareholder sentiment. The company's past attempts to obscure issues, such as the lack of transparency around the KKR deal, have not helped its situation.

Reflecting on their strategy, Perpetual may realise that its current issues stem from overpaying for declining businesses in an attempt to grow. The once high-earning and high-margin JO Hambro business, for example, is now a shadow of its former self. This approach has not only failed to deliver the desired growth but has also contributed to the company's ongoing challenges.

We believe Perpetual has done very little to answer the questions of shareholders and therefore reaffirm our Sell rating.

Discover our powerful trading platforms and tools

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Discover how to trade the markets

Learn how indices work – and discover the wide range of markets you can trade on – with IG Academy's free ’introducing the financial markets’ course.

Try IG Academy

Put learning into action

Try out what you’ve learned in this index strategy article risk-free in your demo account.

Try it out

Ready to trade indices?

Put the lessons in this article to use in a live account – upgrading is quick and easy.

  • Get fixed spreads from 1 point on FTSE 100 and Germany 40
  • Protect your capital with risk management tools
  • Trade more 24-hour markets than any other provider
Create live account

Inspired to trade?

Put your new knowledge into practice. Log in to your account now.

Log in now

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.