Perpetual: Multi-boutiques attract talent

By Elizabeth Fry

After stitching up a $201 billion deal with Pendal, Perpetual chief executive Rob Adams lauded the structure of the multi-boutique model arguing that it attracts the best talent.

In a webcast following the merger announcement, Adams said Investment professionals thrive in environments that allow them to focus on managing money - environments that are that investment-centric with no house view.

"The best distribution talent wants to work with the best fund managers and the global multi-boutique model is, therefore, the preferred destination for quality distribution teams," he said

"The best investment talent working with the best distribution talent to help each boutique realise its growth ambitions.

"The merger of Pendal and Perpetual provides us with a unique opportunity to create such an environment," adding that the combination of a diverse set of investment teams across channels and geographies will drive superior growth over time.

He also said the model would help the group withstand industry-wide headwinds.

The scrip and cash deal announced on Thursday comes after months of talks between the two fund managers.

Under the revised offer, Pendal shareholders will receive one Perpetual share for each 7.5 Pendal shares plus $1.976 of cash per share.

Perpetual's share price slipped nearly 10 per cent to 27.43 in early afternoon trade.

With Thursday's fall, the stock has plunged  22 per cent since the start of the year.

Conversely, Pendal's share price climbed nearly 10 percent to $5.33.

Pendal shareholders will own about 47 per cent of the combined group, with up to three directors from the Pendal board to be invited to join the Perpetual board post completion.

Perpetual said its leadership would remain intact flagging the exit of Pendal's Australian chief executive Richard Brandweiner.