Perpetual asset management outflows hit $9.6bn

Perpetual's asset management business recorded $9.6 billion in net outflows during the September quarter, weighing on funds under management as its Corporate Trust Division reached a record $1.4 trillion in funds under administration.

Total assets under management (AUM) in the asset management business fell 5.5% over the quarter to $212 billion on September 30, down from $224.4 billion as at June 30. Outflows, adverse currency movements and negative market performance contributed to the decline.

Perpetual chief executive and managing director Bernard Reilly said the quarter demonstrated the differing performance of the group's businesses, with Corporate Trust growth offset by Asset Management outflows.

Redemptions were concentrated in US and global equity strategies, including Barrow Hanley's US Large Cap Value and Non-US Value offerings, which recorded outflows of $4.6 billion and $1.1 billion respectively.

Despite the broader withdrawals, Perpetual reported inflows in Barrow Hanely's emerging markets strategies, J O Hambro Capital Management's global and international opportunity strategies, and Australian fixed income strategies.

"We also saw lower outflows in J O Hambro's global and international select strategies relative to preceding quarters," Reilly said.

Corporate Trust funds under administration rose 2.8% to $1.4 trillion, including $300 billion in custody. Debt Market Services benefited from new issuance, higher transaction volumes and new client wins, while Managed Funds Services grew through new and existing relationships.

Digital and Markets also recorded growth in it's Perpetual Intelligence and fixed income products, alongside the addition of assets under administration following the acquisition of Interfi Systems.

Meanwhile, Wealth Management funds under advice remained stable at $22.1 billion as Perpetual continued preparations for the sale of the business to Bain Capital.

The transaction is expected to complete in the final quarter of calendar 2026, subject to remaining conditions, including regulatory and court approvals.

Looking ahead Reilly marks the important milestone of the company since its establishment.

"This quarter also marks 140 years since Perpetual was founded in 1886, an important milestone in the company's history," he said.

"As we mark the anniversary, our focus remains on our clients and the work ahead across our business," he said.