Rob Adams is turning Perpetual into a global investment powerhouse.Credit:Peter Braig
The deal will give Perpetual about 20 new investment strategies across US,global equities and emerging markets,adding $US41 billion ($58.3 billion),or tripling Perpetual's total assets under management to $87 billion.
Mr Adams said he expects Perpetual's offshore earnings to grow at a faster rate than its local investments and said the global pivot would be"transformational"for the 134-year-old investment firm.
"Perpetual up until now has been extensively a domestic-only focused business,"he said."A third of our earnings will be generated from outside Australia. That’s a substantial change for us."
Mr Adams said only 2.5 per cent of the world's listed companies were located in Australia."So if people just focus on those opportunities,they're missing out on 97.5 per cent of the opportunities."
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Perpetual and Barrow Hanley are value managers,meaning they seek out long-term investments in companies they believe are trading at a discount. Mr Adams said he has long believed US technology companies are over-valued and his stock pickers would seek out the"winners and losers"amid the market dislocation caused by COVID-19.
"The best stock pickers in the world will be the ones that can consistently add value in the short and medium to longer term. I feel very strongly we’re in that sort of environment,"he said.