Perpetual advice profits climb

Announcing its full-year results on Thursday, Perpetual said its Perpetual Private advice business had seen an 8 per cent jump in net profit before tax to $35 million, driven by “higher market related revenues and positive net flows”.

The group said revenue for the business was “relatively unchanged” at $183.8 million, and had been impacted by the COVID-related economic slowdown and low-interest rates.

However, Perpetual said its growth strategy in the adviser market was paying dividends with a record increase in funds under advice for the 2021 financial year to $17 billion, up 90 per cent.

“Our adviser growth strategy has experienced positive inflows of funds under advice since the inception of the strategy, helping to deliver Perpetual Private’s eighth consecutive year of positive net flows,” Perpetual chief executive and managing director Rob Adams said.

“We are well poised to build on the results of this strategy this year, supported by our enhanced family office and ultra high net worth offering, which is gaining momentum.”

Mr Adams said Perpetual’s recently announced acquisition of boutique practice Jacaranda Financial Planning had added $915 million in funds under advice to the group and would provide Jacaranda with scale and leverage to grow.

“This transaction is entirely in line with our strategy of bringing the industry’s best advisers to Perpetual, providing an improved growth profile for both firms,” he said.

The news came as Perpetual reported healthy overall profits for the 2021 year, with a jump of 26 per cent in underlying profit after tax to $124.1 million.