Dear Shareholder

Looking at the year we have all experienced, what strikes me is that driving the progress of a listed company is a constant search for balance. We need to be constantly balancing the needs of shareholders, customers and our people – while protecting and shaping the future of the business. 

At Perpetual we strive to achieve that balance in a very structured way – we have a scorecard that sets stringent and rigorous financial goals. It’s designed to ensure we meet the needs of our shareholders for income whilst always investing in the business for the future. A balanced approach also requires us to manage capital carefully. We are a low debt company because it reduces the risks to our business and for our shareholders during uncertain business and economic cycles. 

We are a company that is prudent with your capital and one that will continue to invest in the capabilities of the business. 

The financial results we have delivered have enabled a 6% increased dividend this year on last year, and this report contains more details on the financial strength of the company.

Geoff Lloyd’s CEO report provides examples of how we are investing in all aspects of the business under our Lead & Grow strategy. Among other initiatives, we are investing in new partner growth in our Fordham professional services business, in new data opportunities in Perpetual Corporate Trust and in expanding the products that offer investors access to the expertise in Perpetual Investments. 

A people business 

We regularly, methodically and independently measure two very important aspects of our business. The Net Promoter Score measures client advocacy – how our clients rate our service and the solutions we provide. Employee engagement is another important component of our balanced scorecard. It provides an opportunity for our people to give feedback on how they feel about their work environment and their level of engagement as part of the Perpetual team. 

We have achieved improvements across the company on both employee engagement and Net Promoter Score metrics over the past few years. In my view it is no coincidence we have improved our financial results at the same time. 

Culture as a strategy

I remain convinced the sense of balance in our business extends beyond the management disciplines we have put in place – scorecards, independent measurement and so on. I believe it is ingrained in our people. We are constantly looking at ways we can improve our services by listening and better understanding our clients, shareholders, people and business partners.

Across all parts of the business there is a strong and enduring fiduciary culture that guides the way we treat all stakeholders in the business. 

Interestingly, this year we have hosted some top thinkers from Stanford University, experts in the implications the digital revolution has for philanthropy and civil society. We are now in a world where managing data is a key way to provide solutions to your clients. But we also live in a world where the security and ethical handling of that data is key.

I believe our long-held fiduciary values – that we can be trusted to act in the interests of our clients – will continue to give us a distinct advantage in a more digital world – but also in all aspects of the business. 

Consistency, resilience, trust

The consistency and conservatism of our approach creates another virtuous circle – clients know the way we work, how we manage money, the values of the organisation. They know we are built to last, that we aim to be resilient in tough times.

I believe next year – as our Lead & Grow strategy continues to be implemented in a disciplined and well-planned manner – our balanced approach will remain a key factor in maintaining the trust of all of our stakeholders. In the end, that trust is our company’s greatest asset. 

THANK YOU

I wish to thank all shareholders, my board colleagues and the whole team at Perpetual for their support this year.