Analysts have been guided by a catalogue of dud deals in the funds management sector as they crunched the numbers on Perpetual after it’s bid for Pendal was accepted.
will boost its earnings but carries significant risks that clients and staff may head for the door, say analysts.Although analysts think there is logic in a bulked up firm that will manage more than $200 billion of assets, they struck a cautious tone.Jarden’s Elizabeth Miliatis upgraded her share price target from $24.35 to $29.10 because of the expected earnings increase from the combined group.
Jarden said although the risks around retaining Australian equities clients appeared to be addressed, as Pendal and Perpetual would continue to operate separate funds, the threat was that global clients might move their money. In particular, funds invested with US-based value firm TSW, which was acquired by Pendal just over a year ago were at risk, Jarden said.
UBS pointed out that Perpetual and Pendal’s touted acquisitions of US fund managers Barrow Hanley and TSW belonged in the “miss” rather than “hit” category, as clients have pulled out about 15 per cent and 8 per cent of funds since those deals were penned.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Deal on: Perpetual, Pendal ready to tie the knotTwo fierce rivals of Australia’s funds management, Perpetual and Pendal Group, are going to have to bury the hatchet.
Read more »
Perpetual buys Pendal, creating $201b asset managerInvestment firm Perpetual has agreed to buy rival Pendal after long-running talks finally ended in an agreement to create a $201 billion global asset manager.
Read more »
Perpetual buys Pendal, creating $201b asset managerInvestment firm Perpetual has agreed to buy rival Pendal after long-running talks finally ended in an agreement to create a $201 billion global asset manager.
Read more »
Qantas plots $400m buyback; Perpetual to acquire PendalWATCH LIVE: Qantas earnings briefing; Whitehaven $1.95b record profit; Appen swings to half-year loss, warns on guidance; Charter Hall forecasts 6pc dividend growth; Eagers declares record interim dividend; Follow for updates.
Read more »
Perpetual’s Pendal takeover shoots for best of both worldsOPINION: Perpetual’s takeover of Pendal aims to extract the top attributes of boutique funds management with institutional scale. But finding that balance won’t be easy.
Read more »
BoA spearheads Perpetual’s new debt packageBank of America and three other lenders are set to bankroll the bulked-up Perpetual Ltd.
Read more »