Perpetual Limited · ASX:PPT
Perpetual — Investor Presentation (September 2004)
15 slides from Perpetual's investor presentation, Sep 24, 2004
Slide 1: Perpetual Global Equities Strategy Analyst Briefing
Perpetual Global Equities Strategy Analyst Briefing 24 September 2004 0
Slide 2: Perpetual will create its own global equities business
Perpetual will create its own global equities business Business • Manufacture a focused range of global equities products strategy includes: • Distribution of these products to: •Retail and institutional investors in Australia •Institutional investors outside of Australia Perpetual Trustees Australi
Slide 3: Key points: Perpetual Global Equities
Key points: Perpetual Global Equities • Secured outstanding Global Equities investment capabilities based in Dublin • Strategy incorporates the best of “Greenfield” and “acquisition” Strategic options development • Supports Perpetual’s new strategy for developing new growth engines and balancing the
Slide 4: Implementing our Strategy
Implementing our Strategy Focus on our 4 sources I. Develop a more II. Develop new of competitive advantage balanced portfolio growth engines Perpetual Global Equities III. Fully engage the staff to deliver our strategy 3
Slide 5: Build capability in new investment skill sets
Build capability in new investment skill sets High Low Skill set breadth breadth Domestic Small Hedge Private Broad Styles Stock Picking Caps Funds Equity Mortgage Mortgages Mezz Lending Debt Recently LPT Stock Picking Global Domestic added capability Infrastructure Infra- Investing structure Quanti
Slide 6: Adding a global stock picking capability
Adding a global stock picking capability High Low Skill set breadth breadth Domestic Small Hedge Private Broad Styles Stock Picking Caps Funds Equity Mortgage Mortgages Mezz Lending Debt Recently LPT Global Domestic added Stock Picking Global capability Infrastructure Infra- Equities Investing struc
Slide 7: Global equities presents a significant opportunity for Perpetual
Global equities presents a significant opportunity for Perpetual Global equities is a very large market… …with growing market share in Australia Australian asset allocation in Global Equity Global equities (% of total) FUM (USD) $2,000B 25 20 1,500 15 1,000 10 500 5 0 0 96 7 98 99 00 1 02 ia y n K l
Slide 8: We evaluated six options to develop our global equities capability
We evaluated six options to develop our global equities capability Alliance Greenfield Fund of funds Options to participate in the Hire proven global equity capabilities market Joint venture Acquisition of business 7
Slide 9: Hiring proven capabilities was the best option for Perpetual
Hiring proven capabilities was the best option for Perpetual Conclusion on Strategic options Criteria for evaluation options Alliance Limited upside Amount of investment Fund of funds Limited upside Ease of integration Uncertain value Joint venture add from partners Speed of entry Slow growth/ Low G
Slide 10: Perpetual's new Global Equities group is outstanding with a strong cultural fit
Perpetual’s new Global Equities group is outstanding with a strong cultural fit • Bottom-up stock pickers Philosophy aligned with • Strong investment results Perpetual • Value bias • Worked together for the last ten years A high quality, stable • Industry experience average exceeds 22 years group •
Slide 11: Newest members to the Perpetual asset management team
Newest members to the Perpetual asset management team • Deputy Chief Investment Officer at Bank of Ireland Asset Management • Product Head EAFE (Europe, Asia, Far East) product - Global equities without Des Sullivan US exposure – usually sold to US clients looking for non-US exposure Age 42 • Part o
Slide 12: Perpetual will initially have a team of ~16 in Dublin
Perpetual will initially have a team of ~16 in Dublin • Des Sullivan and John Nolan will be Chief Investment Officers for Perpetual Global Equities – responsible to Emilio Gonzalez, Perpetual CIO Core investment team hired • Richard Kelly and John Forde - Senior Portfolio managers • 4 of 8 positions
Slide 13: Long-term incentive program
Long-term incentive program • $28m in PTAL shares issued to the investment team and to be held in trust • Vesting subject to achievement of revenue targets • Range of outcomes: $0 to $28m • Vests over seven years • Issue price determined as the weighted average price of PTAL shares in the five tradi
Slide 14: Indicative timeline
Indicative timeline • Sep 04: Perpetual announces Global Equity strategy • Sep 04: Irish company formed and execution of strategy begins • Nov 04: Investment managers join Perpetual • Feb 05: Business license approved in Ireland • Feb 05: New Perpetual Global Equities business assumes management of
Slide 15: Perpetual Global Equities Strategy Analyst Briefing
Perpetual Global Equities Strategy Analyst Briefing 24 September 2004 14