The company reported funds under management of $25.8bn as of March, up 6.9% in the quarter. Growth was driven by a positive investment performance. Given a weak fund performance, Credit Suisse does not expect the company’s formulaic bonus pools to operate in FY19 as performance hurdles have not yet been met.
The broker is forecasting a -35-40% cut in variable remuneration in FY19. Despite the weaker fund performance and flows, the -15% fall in the share price has created some value protection, the broker assesses. Neutral rating and $4.70 target maintained.
Sector: Diversified Financials.
Target price is $4.70.Current Price is $4.72. Difference: ($0.02) – (brackets indicate current price is over target). If PTM meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
