I AM FULLY IN FAVOUR OF THIS IDEA BY GARY LAURENCE.Australian...

I AM FULLY IN FAVOUR OF THIS IDEA BY GARY LAURENCE.



Australian investors would flock back to Perpetual if most of its earnings were weighted back to a growing, stable earnings stream, not linked to volatile equity markets, which the corporate trust [division] provides.”

Mr Laurence said Perpetual should instead sell its global asset management portfolio including Barrow Hanley, TSW and Trillium – which he values at $2 billion – to capitalise on the strong equity market in the United States and the weak Australian dollar. This would generate beneficial tax losses and refocus Perpetual on the earnings of its corporate trust unit, allowing it to pay fully franked distributions to local shareholders.