Financial

Perpetual Private’s revenue was $167.6 million, up 1%, or $1.3 million on FY15. Its profit before tax was $34.2 million, down 9%. 

The main drivers of FY16 revenue were higher non-market-related activity (tax and accounting – Fordham and property), higher funds management activity, and lower average FUA due to equity market declines. These were partially offset by positive net inflows. 

Perpetual Private’s market-related revenue margin was flat in FY16 compared to FY15. 

Total expenses, made up of operating expenses, depreciation, amortisation and equity remuneration, for Perpetual Private in FY16 were $133.4 million, $4.6 million or 4% higher than in FY15. The increase on FY15 was primarily due to investments in Lead & Grow initiatives, continued investment into Fordham, and integration costs associated with the acquisition of Fintuition, one of Australia’s leading business, financial and lifestyle educators for medical specialists. 

Perpetual Private’s funds under advice at the end of FY16 were $12.7 billion, $0.4 billion lower than FY15, primarily due to lower equity markets, offset by positive net flows and net new clients. 

Focus

Under Perpetual’s Lead & Grow strategy, Perpetual Private will maintain its strategic objective to lead in high net worth advice and wealth management to its key client segments of ‘business owners’, ‘established wealthy’ and ‘professionals’. These segments represent 75% of the high net worth market and play to Perpetual Private’s existing strengths across research, investments, advisory expertise, fiduciary services and philanthropy. 

Delivery

Lead & Grow initiatives are well underway. For the third consecutive year, Perpetual Private delivered growth in the net number of high net worth clients and not-for-profit and philanthropy clients.

Perpetual Private has made strong progress growing its presence within the medical sector. During the year, Perpetual acquired Fintuition and its education arm The Private Practice. The acquisition has allowed Perpetual to offer greater breadth of services across accounting, tax, estate planning and financial advice to meet the specific advice needs of medical specialists. 

Perpetual continues to invest in Fordham following strong, ongoing demand. Growth up the Eastern seaboard has commenced with six new partners in Sydney and further opportunity for growth over the coming year.

Perpetual Private also launched a new Native Title and Community Trust, to provide cost-effective investment options to indigenous communities with native title determination. 

Perpetual was named Trustee-in-Waiting for the Noongar Boodja Trust, the largest and most significant of its kind in Australia. Perpetual’s role as trustee will be to work with the community to help achieve their aspirations – and oversee the growing asset base, expected to reach $1.3 billion over time and up to 320,000 hectares of Crown land. 

Perpetual is one of Australia’s largest managers of philanthropic funds, with $2.4 billion in funds under advice for charitable trusts and endowment funds at 30 June 2016 and more than $118 million distributed through the year. 

During the year, Perpetual announced its inaugural IMPACT Philanthropy Partnership grants, which saw eight not-for-profit organisations receive a total of $6.2 million. This followed the announcement in 2015 of IMPACT Philanthropy, bringing together the best thinking from Perpetual and The Trust Company.