Perpetual shares jump as Jarden picks it over competitors
Make us a preferred source
Make us a preferred source on Google
The news: Perpetual shares were higher in early afternoon trade after Jarden analysts rated the company as their preferred pick among asset managers.
The numbers: Perpetual shares were up 2.47% to $19.95 by 1:30pm AEST. Over the last 12 months they're down 0.75%.
The context: Jarden said Perpetual had greater funds under management exposure and strong 1Q25 Australian and global equity returns that supported positive earnings per share forecast revisions compared to its competitors.
Analysts also pointed to the fact that the fund manager was realising the value/unwind of the sum-of-parts discount as it divested its corporate trust and wealth businesses.
Jarden has retained its ‘overweight’ rating for Perpetual.
This week, the beleaguered financial services group was revealed to have been probing dissenting shareholders ahead of its annual general meeting next week. This followed a number of proxy advisors counselling shareholders to vote against both the remuneration report and to vote against the re-election of two board directors.
Magellan Financial Group, by comparison, had flagship funds generating aggregate returns in line with prior estimates. While its Vinva acquisition was promising, the Jarden analysts retained their ‘neutral’ outlook on the fund manager given continued outflows that were moderating.
Today, Magellan posted a 0.5% rise in funds under management in September.
On Platinum Asset Management, Jarden also retained its ‘neutral’ rating as the fund manager continued to experience outflows and relative underperformance on its key flagship Platinum International fund. However, the analysts noted that Platinum's strategic transformation, cost-outs and improved Asia relative fund performance remained promising.
Platinum and Regal Partners announced today that they would enter a period of due diligence as Regal prepares an improved takeover proposal for Platinum.
The source: Jarden research
