Charles River Development, a State Street company, has been appointed by Perpetual Group to manage its front office operations for its Australian asset management business.
According to Charles River, Perpetual will adopt its investment management solution (Charles River IMS) to manage its domestic and global portfolios, order and execution, compliance, post trade processing, and front office data.
Craig Squires, Perpetual chief operating officer, said this “important partnership” will ensure the streamlining and simplification of front office operations within Australia on a single OMS platform with Charles River.
“Charles River has proven solutions supporting a multi-boutique business like Perpetual. Its multi-asset capabilities, particularly across Australian and global fixed income markets, are critical for us to grow our business globally,” Squires commented.
He clarified that the basis of the decision went beyond the previous partnership between the two companies to address “the current challenges and complexities of the evolving investment management landscape”.
Namely, Pendal Group – which Perpetual acquired in January 2023 to bring its total assets under management to $214 billion – had been a long-term Charles River client in Australia, with a relationship since 2002.
“We are thrilled to support Perpetual as they evolve their business and operating model,” said Dennis Baillon, director of business development, APAC, Charles River.
“To be successful in today’s market, managers need a platform that provides flexibility in their operating environment and enables them to scale as their business requires.
“Given their commitment to being a truly global asset management business, Charles River’s and State Street’s global network and expertise is a natural fit. We are pleased to extend Charles River into Perpetual’s Australian asset management front office,” added Tim Helyar, country head for Australia, State Street.
Perpetual’s underlying profit after tax (UPAT) grew 46 per cent in the first half of the 2024 financial year to $98.2 million, as per its half-year results released in February.
In a statement to the ASX, it attributed the strong growth to a full six-month contribution of Pendal Group, along with higher wealth management earnings.
Rob Adams, Perpetual chief executive and managing director, noted the integration of the Pendal businesses is “progressing well”, with the firm exceeding its first-year target of $40 million in run-rate synergies. It affirmed total run-rate synergies of $80 million by 2025.
